HUD has a great program with only $100 down payment if you buy a HUD home
foreclosure. The HUD $100 Down Payment Incentive Program could be a great deal for you if you have good
credit but not enough money for the 3.5% down payment required for FHA home
Recently most of the 100% no money down programs has been eliminated from the market. The
lowest down payment amount now is 3.5% offered by FHA financing. But there is an
exception for HUD foreclosures in some states. You can buy a HUD home foreclosure with only $100 down payment. The
HUD $100 Down Payment Program is a great deal!
If you are a resident of the Indianapolis Indiana area and surrounding counties please go to
Indianapolis HUD Homes For Sale and fill out the HUD Homes In Central
Indiana Form and we can send you a list of all of the HUD Homes For Sale in the area you want to live.
"The HUD $100 Down Payment Program is not available in every state, please check with a Realtor in your
state to see if it is available."
This great program does comes with some qualifications or restrictions. Isn't it just like the government
to throw some "catches" into a good program.
But if it is offered in your area it will help you to purchase a home with only $100 down payment plus you can
request HUD to pay your closing costs up to 3% of the purchase price of the home. Again, check with your
real estate agent if this program is offered in your area.
Here is a great short YouTube video by Josh Mettle, a loan officer in Salt Lake City Utah, about buying HUD
homes using the HUD $100 Down Payment Incentive. If you live in Salt Lake City I am sure that Josh can put
you in touch with a real estate agent that is experienced in buying HUD foreclosed homes.
The requirements to qualify for the HUD $100 Down Payment Program are:
1. You have to use FHA financing.
This program is only for purchasers of HUD homes for sale using FHA
financing. The normal down payment for a FHA loan is 3.5%.
2. You have to be an "owner-occupant".
"Owner-Occupant" is HUD's word for homeowner. You are buying the property to live in, not as an investment. This
incentive is not for investors!
3. The $100 Down Payment Incentive applies to the appraised valve of the property.
The purchase price of the HUD home must equal or less than the appraised valve of the property. When HUD puts a HUD foreclosure on the market it will
have an "appraised as-is" market valve. If your accepted bid price is more than the
appraised value, you can pay cash in the amount of the difference between the appraisal and the price less $100
which means your down payment will be more than $100.
In the past you were able to get a new FHA
appraisal to support the more than appraised value purchase price but that has recently changed and
you can't get another appraisal to justify a higher purchase price than the appraised value.
Ok, that may be a little confusing. An example would be if a HUD home is listed at an appraised valve of
$100,000 and you get an accepted bid of $110,000. You will have to bring $10,000 down payment to closing. That
would defeat the purpose of the $100 Down Payment Incentive.
4. The $100 Down Payment has to be on the executed
The HUD $100 Down Payment has to be on the executed contract presented to the closing agent by the M & M Contractor. What this means that you have to request this incentive when you
sent the signed contract to HUD's M & M Contractor. In the Indiana we have three M & M contractors and your
real estate agent would sent it to the contractor that is in charge of the listing.
Now is the time to take advantage of all of the HUD Homes for Sale and The HUD $100
Down Payment Program!
Check with your local Realtor to see if this program is available in your state.