Buying HUD Homes For Sale With $100 Down Payment

Posted by Matthew Lahti on Monday, March 4th, 2013 at 10:12am

Ok, now to the good part, the HUD $100 Down Payment Program. To be able to take advantage of this great program you will have to use FHA financing to purchase the property.

With the recent housing market crash and the credit crunch, the options for buying a home with no or low payment has been pretty much wiped out. But there is one great option still available in some parts of the country and that is buying HUD homes for sale by using the HUD $100 Down Payment Program.

First, we need to discuss what a “HUD home” is. A HUD home is a property that has been foreclosed on that originally used FHA insured financing to purchase the property. The homeowner could not make the payments for whatever reasons and the lender foreclosed on it. HUD then reimburses the lender for what is owed to the lender and HUD takes ownership of the property.

Once HUD takes ownership they will start the marketing process by assigning the property to their Asset Manager in the district that the property is located. The Asset Manager will secure the property and assign it to a Field Manager. The Field Manager will then prepare the property for sale. It is then listed with a local HUD-approved Real Estate Broker. This is when the property is made available to the public for sale.

Ok, now to the good part, the HUD $100 Down Payment Program. To be able to take advantage of this great program you will have to use FHA financing to purchase the property. The normal down payment for an FHA home loan is 3.5%. The main reason HUD offers the $100 down payment program is to sell HUD foreclosed homes fast and also to get owner-occupants into the homes. They believe people who own their home will take care of it better than a renter thus improving the neighborhood. This program is only for people who are going to buy homes to live in. It is not for investors!

Of course, this is a government program which means there are some strings attached to the program.

1. As mentioned above, it is for owner-occupants only.

2. You have to use FHA financing to purchase the home.

3. It is HUD homes for sale only, which are homes that have been foreclosed on that was purchased with FHA financing.

4. Even though you only have to pay $100 down payment you will still need the required earnest money. HUD requires a buyer to submit with the Purchase Contact earnest money of $1,000 if the purchase price is over $50,000 and $500 if the purchase price is under $50,000.

This program is not nation-wide; it is currently being offered in about half of the states. You should contact a local HUD-approved Real Estate Broker to see if it is currently being offered in your state. A word of caution, you need to make sure that the real estate agent that you use is experienced in buying HUD homes for sale. Buying a HUD home is a lot different than the normal real estate transaction. An inexperienced agent can cost you thousands of dollars.

The HUD $100 Down Payment Program is a great way to purchase a home if you do not have a lot of money for a down payment. It will give you the opportunity to buy a home now while the home prices and the interest rates are low!

You can get more information about HUD Homes For Sale and also you can get more information about $100 down payment by clicking HUD $100 Down Payment Program!

*UPDATE February 14, 2019 - The $100 down HUD Home program is currently not being offered by HUD.  This program is typically offered when there's an increase in distressed property inventory.  Please monitor the HudHomeStore for updates or for other buyer incentive programs.

6 Responses to Buying HUD Homes For Sale With $100 Down Payment

Nakeysha Smalls wrote:

What does my credit score need to be to qualifiy for this?

Posted on Monday, June 30th, 2014 at 5:09am

Matthew Lahti wrote:

Hi Nakeysha, This HUD program is very limited, to find out if a home qualifies for this program visit www.hudhomestore.com to see available properties. If this program is available it will be noted in the property details. Some HUD programs are not credit score driven which means they look at the whole picture vs. just your credit score. FHA also has some great programs along with USDA which offers a zero down program. I'd recommend that you contact a mortgage broker so they can go over the available mortgage programs and what program would work best for you. Please visit your mortgage page for more information. http://www.pnwr.com/mortgage-approval-home-loans.php

Posted on Monday, June 30th, 2014 at 3:29pm

ylando truesdale wrote:

How can i get into this program?

Posted on Friday, February 6th, 2015 at 11:33am

Matthew Lahti wrote:

Thank for your comment. The $100 down payment program is currently not running with HUD. This blog entry is from March 2013. For information about their current programs please visit www.hudhomestore.com

Posted on Friday, February 6th, 2015 at 1:12pm

Christina wrote:

I want to know if Haughton,Louisiana is on the $100 down for HUD homes?

Posted on Wednesday, September 30th, 2015 at 4:23pm

Christine Carlson wrote:

I am currently on hud and I wanted to find out how to get a home through hud to buy

Posted on Saturday, March 30th, 2019 at 1:03pm

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