HUD Offers Homes for $100

by Peter G. Miller
December 2nd, 2007

HUD has announced a new program to unload inventory in several states: Colorado, Michigan, Montana, Ohio, Pennsylvania (selected) counties), Utah and Wyoming.

The way it works is that the borrower can purchase a property for $100 down. HUD will pay as much as 3 percent of the sale price to offset closing costs, plus it will finance the transaction.

To help matters along, HUD will pay brokers a $500 bonus for each property sold at full price.

Lists of HUD properties available under the program are available for each state. First go to the HUD page and then go to a state of interest.

Below are several items from the HUD FAQ regarding the program. For specifics, speak with real estate brokers in a jurisdiction where properties are available for sale.

Frequently Asked Questions Regarding Incentives Starting 11/23/2007

Q: Which properties are eligible for the $100 down payment incentive?

A: Any property listed as available for FHA financing (203B, 203B with repair escrow and 203K) on the effective date of 11/23/07 will be eligible. However, the purchaser must be an owner occupant to qualify and the full price offer must be accepted after the effective date. Properties with an accepted offer or currently under contract will not qualify.

Q: What is a “full price offer?”

A: The current list price is a full price offer, even if the property has been price- reduced. HUD will still pay up to 3% of the list price for closing costs and up to 5% for the selling agent commission. This is a great opportunity for buyer’s to purchase a HUD home at a reduced price and with an affordable down payment.

Q: Are properties listed under special programs available for the $100 down payment incentive?

A: Properties sold under the Good Neighbor Next Door Program currently have this provision if FHA financing is used and are also eligible for the $500 Selling Broker Bonus if FHA 203K Financing is used. Offers accepted under HUD’s Nationwide Sale to Disaster Evacuees (FEMA) and Non-profit Purchasers are not eligible.

Q: How long will this incentive program last?

A: HUD has not published the length of time these incentives will be offered.

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This entry was posted on Sunday, December 2nd, 2007 at 1:36 pm and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

5 Responses to “HUD Offers Homes for $100”

  1. Tom Waggoner Says:

    What is the required earnest money deposit for HUD home purchase offer when planning on utilizing the $100 down payment program?

  2. Sabrina Says:

    The earnest money of 1,000.00 can be refunded with the 1,000.00 program. Do you have anything on the website to confirm this?

  3. Julia Woodley Says:

    So you are saying any HUD property can qualify for the $100 down payment, as long as the borrower is occupying the property. In addition to this incentive the borrower can also receive an additional 3% for closing costs?

  4. London Says:

    what about the upfront MI, can the loan go over 100% so the upfront MI can also be financed?

  5. Tammy Esaley Says:

    Where do I find a lender that will do this?

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