First-time home buyers are looking for as little down payment as possible. Well, $100 is pretty low! The HUD $100 down program is an FHA loan with a twist. Instead of the minimum required 3.5% of the price down payment, FHA allows a $100 minimum required investment. Regretfully, this program is limited to eligible properties. In order to use the HUD $100 down program, the property must be a HUD foreclosure or in other words, a HUD REO. There’s another set of initials! Real Estate Owned is what it stands for by the way. In addition to being a HUD-owned foreclosure, HUD must state that the listing is eligible for the $100 down incentive. So, that’s where it gets limited.
HUD $100 Down Program Requirements
- Primary residence only
- Single-family homes, not manufactured homes
- Full price offers only – HUD REO properties do not negotiate
- Could not have purchased a HUD home within 24 months
- $100 down program must be in the signed contract
- Standard FHA credit score requirements
To search HUD homes for sale, you can search the HUD.gov site. You may find your new home and get it for $100 down!
