When you place an offer on a HUD Home you can ask HUD to pay up to 3% of buyers closing costs. This is a great way to reduce the amount of money required when purchasing a home.
**Important note: When you ask HUD to pay closing costs this amount reduces the Net-to-HUD. So, if you place a bid at $100,000 and ask for 3% ($3,000) closing costs to be paid by HUD your bid looks like $97,000. If another buyer bids $100,000 and asks for no closing cost to be paid by HUD, their bid wins.