NET to HUD

6 Replies

I got a counter offer from HUD and they want a net amount value for HUD.

if the net amount is 100,000; should I place a bid for $106,383 to cover the seller and the buyers fees (6%)? am I missing any fees? 

Thanks

Yes, the counter offer does not include the realtor fees. 

yes, that is what they want, just the realtor fees. HUD will not cover ANY closing costs, so that is all that you need to account for when complying with their counter offer. Keep in mind, though, that that is the MINIMUM they will accept (at least for now), and they will accept the best offer over that, so if there is the possibility that others are also bidding, you may want to go a few hundred over in order to outbid any competitors.

@Sebby Gabre Madhin

HUD will pay up to 3% of allowable buyer's closing costs. As stated , HUD only considers the net to HUD so the closing costs would need to be added to the bid as well

so net to hud + 9℅. Correct?

Originally posted by @Juan Medina :

so net to hud + 9℅. Correct?

 Yes. You are not required to take the closing costs and on a cash purchase it makes no sense to do so. You agent and loan officer should be able to advise you on the best number for your situation 

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