There are many advantages to purchasing a HUD Home. First, there is no haggling with the seller. HUD's sealed bid system was designed to be a transparent system where the highest bidder wins with all the processes spelled out in black and white with a quick response to bids - usually within 24 hours. Second, HUD eliminates many costs for homeowners while providing closing cost assistance up to 3% of the purchase price. For example, HUD provides a clear termite inspection report. In addition, FHA financing requires a low down payment. Finally, HUD requires a low earnest money deposit of $1,000. With these benefits and more, purchasing a HUD Owned Home is the smart choice for many prospective home buyers.