HUD question

There is a HUD property for sale for $90k. The only thing it needs is carpet and the value is $130k. However, the bid is only open to Owner Occupants. However, I have an employee who works for my other business who is looking to buy a house. Legally, the purchaser of the property has to live in it for 12 months before it can be sold. His credit is questionable but with me as a cosigner, he would be approved. Could I legally cosign his loan and he live in it or do all owners have to live in it or will HUD even allow that?

I have absolutely no knowledge of how HUD works so if someone could advise me, I’d appreciate it.

HUD doesn’t care, that should work fine. Keep in mind however, the property will sell above $90k. The house I live in is a HUD home with the same numbers except HUD wanted $95k, I bid $101k and got it.

Also, I hope you know what you are getting into by being a cosigner.

Thanks for the feedback. I just don’t feel like paying $250k in penalties and jail time. As far as co-signing it, I would have my attorney do up a special contract to cover all areas of my ass. ;D

Thanks again.