Updated about 9 years ago on . Most recent reply
HUD Purchase - Changing from Conventional to Cash
Hi BP, I have a HUD property under contract. I planned to buy this property w/ a conventional mortgage and stated as much in my contract. It is in better shape than most HUD homes I've seen, so pardon my belief that this property could be purchased w/ a conventional mortgage. HUD's field service manager informed me that they will not permit water to be turned on for an inspection and appraisal. Of course I told my lender about this two weeks ago, but now finally this week, my lender said they cannot lend on the property w/out the water turned on.
HUD requires cash transactions to close within 30 days and financed transactions to close within 45 days. My one question is, in your experience, if you have had to change your financing from conventional to cash, does HUD still allow you to close w/in 45 days? If not, do you have any suggestions for any other ways around the 30 day cash requirement?