If you read HUDs site ... you will notice that you are not allowed (as the buyer) to make repairs to the property until it has been sold to you (the buyer). This is if the house is listed with HUD. If it belongs to an individual, the seller can sell it "as is", but HUD would require the repairs be done within a certain time frame of purchasing (or at least that's how I understand it).
Either way ... you can call HUD and they will answer your questions.