My husband and I are purchasing a HUD home and we are very excited! The only downside is that my realtor doesnt seem to be too familiar with the whole HUD system and it makes me a little nervous. I only say this because she often contradicts herself. And our last attempt to purchase a HUD she failed to inform us that if we bid above the appraisel that we have to bring the difference to the table, not include it in the loan. (We have a contract with her for two months and are trying to beat the 1st time homebuyer credit cut off in Nov.) Anyway, we found an even better deal this time and won the bid, we went slightly over, but we can bring it to the table and will be moving in with over K in equity. However, I have a concern. As with most HUD homes this one needs a few repairs. It was built in 2006 and is beautiful, however, whoever had it last must have had at least 3 large dogs. Needless to say ALL the carpet has to be ripped out and replaced. Other than that the house is move-in-ready. So heres the thing that gets me. My lender said that he needs to get the house re-appraised before the closing. He called us and was happy to let us know that the house appraised for about k more than what we are purchasing it for, and that we may be able to roll the closing cost into the loan. This made my husband and I very excited because then we could use all the money that we saved up to fix the house up better than we had initialy planned. However, my realtor informed us that we would not be able to do this. Why? Everytime we ask her to explain why were just left more confussed. Neither one of us a real estate specialist, but we do have college degrees. Were just so confused. Our lender says one thing, out realtor says another.We have enough saved up to close and do the repairs, but we would like to have better upgrades if we can.We are getting a FHA loan, Northeast Houston area. Anyone know this business? Thanks!