As all HUD homes have previously been purchased with an FHA backed mortgage you know that they all qualify. So, if you have a credit score of 580 or above you may qualify for an FHA insured loan and will only have to find 3.5% of the final sales price of the home as your down payment. While it is important to hire an experienced and knowledgeable inspector, there is something else you need to consider: find a professional who has inspected HUD homes in the past. These people are well aware of the most common concerns with these homes, allowing you to receive the best information possible click here to inquire on defects and repair costs. In addition, this is an opportunity for a buyer to get a home at a good price. Because of their condition, many HUD homes are sold below market value. It is up to the buyer to assess how much repair is needed, and whether they have the capacity to do so.