That depends on the type of loan that you are using to finance the property. There certainly should not be a problem selling a properly originated FHA insured loan made on a HUD home. Other types of loans must meet the guidelines of that particular type of loan…conventional, VA, etc. This means that both the borrower AND the property qualify for the loan. So any required repairs on a conventional loan can be a problem since HUD, in almost all instances, will not make the repairs and you don’t own the property until after closing so you can’t make the repairs prior to closing.
I am not sure why you would think that there will be no problem since your originator has no experience. Any delays in closing will require non-refundable earnest money. And don’t think HUD won’t keep that money if you don’t close regardless of the reason.
While financing HUD homes is not rocket science, they can be a headache even if you know what you are doing.
A HUD home is simply a 1 to 4 family residence that carried a FHA loan and was foreclosed upon. This technically makes this home and a typical sale exactly the same in the end. Both come with a warranty deed and title insurance. If you can make it through the closing (with all HUD’s requirements – therein lies the challenge) and you use traditional financing, the resale to the secondary should not be a problem.