If it's a home in a homeowners' association, sometimes it will even pay a year's worth of association fees for the buyer. VA operates differently. There are no inspections or guarantees. What you see is what you get. HUD and VA homes are sold by auction.
People submit a sealed bid through their real estate agents.
So, if you're in the market for such a house make sure you deal with a real estate agent familiar with the system. With a VA loan, the real estate agent becomes your loan officer and presents your paperwork to VA, which finances the loan. HUD homes are financed by FHA-approved lenders, and your local HUD office or your real estate agent can help you find one. These homes have passed the termite inspection, and the plumbing and wiring are okay. They are in fairly good shape, but they have problems that HUD inspectors have determined and have set aside money in an escrow account to repair them.