HUD Package Common Errors and Omissions

Common errors and omissions in the HUD home purchasing process:

HUD 9548 Sales Contract

  • Buyer must initial Paragraph 12 in blue ink.
  • Line 1, 2, and 13 must match (unless the buyer is obtaining FHA financing.)
  • Line 2 must have the buyer’s name and style of title (i.e. married, single, joint tenants)
  • You may NOT write any down payment amount, mortgage amount, or number of months on Line 4. You may only write “$100” on the down payment line if the buyer is obtaining FHA financing and they lender participates in the $100 down payment program.
  • Line 11: Other addendum “IS” attached hereto and made part of this contract. The “IS” box is always checked.
  • Printed name and phone number of selling agent must be written under the broker’s signature and phone number.


Prequalification Letters

  • Terms and conditions must match the figures outline on the actual sales contract, including the type of financing, and a statement that their credit has been pulled and reviewed. Letter must be on the lender’s letterhead, signed, and have the full contact information for the lender.
  • Lenders cannot provide a buyer with an FHA prequalification letter for more than the current as-is value outlined on HUD’s website. The maximum FHA mortgage amount is the as-is value regardless of what the buyer bid. Any FHA buyer that bids over the as-is value must produce proof of cash for the difference between the as-is value and the buyer’s bid price in addition to their FHA prequalification letter.


Lead Based Paint Addendum

  • There are 2 lines on the 3rd page that the buyer must initial. A copy of the “Protect Your Family from Lead in Your Home” handbook can be found (in several languages) at


Please Note:

This page is only a general overview of HUD’s policies and procedures and it should not be considered to be all inclusive or absolute.

A COMPLIMENTARY review of all HUD contract packages is offered 7 days a week.
Simply email your fully executed contract package to