Buy a Home for only $100 down?

Conventional loans require up to 20% for the down payment. Even FHA loans require 3.5% down payment. HUD has homes you can purchase with a $100 down payment.

What are HUD Homes?

A HUD home is a home that HUD owns as a result of foreclosing on an FHA loan.

These HUD homes are not the HUD homes of the past. FHA increased the loan limits to a high of $729,750 for Single Family homes and up to $1,403,400 for Four Family homes. As a result of higher loan limits, the inventory of homes includes more expensive properties.

The largest hurdle buyer’s face in purchasing a home is coming up with the down payment. The down payment for these HUD homes is $100. Everyone should be able to come up with $100 for a down payment.

There are some requirements you must meet in order to take advantage of the $100 down payment program. When someone with an FHA insured loan can’t make the payments, the lender forecloses on the home. FHA, as the insurer of the loan, pays the lender what is owed and then the United States Dept. of Housing and Urban Development (HUD) becomes the owner of the home

Who is Eligible to Buy HUD Homes?

Almost anyone can buy a HUD home. Any individual who can qualify for an FHA mortgage or who can pay cash may buy a HUD home.

Buyers must have a pre-qualification letter from a lender or proof of cash funds. HUD does not provide financing for the purchase of HUD homes. It is up to the buyer to procure financing through a bank or mortgage lender.

Priority is given to purchasers who are owner occupants. Owner-occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home for two years

 Requirements:

1. HUD Foreclosed homes only.

2. Must use FHA financing.

3. Purchaser must be Owner - Occupant. You must sign a form at closing stating that you are going to live in the property and not use it as an investment such as a rental property.