$100 HUD Home Purchase Program

Gustan Cho Associates

$100 HUD Home Purchase Program

$100 HUD Home Purchase Program

Many renters who have been renting for many years do not even consider buying a home and becoming a homeowner because they think and believe it is harder that it actually is.  Some renters are paying north of $1,000 per month and some who are renting single family homes are paying closing to $2,000 per month in many parts of the country.  As long as you have documented income such as hourly wages, salaried wages, and positive 1099 income, you can qualify for a home loan with little down payment, no down payment, and no closing costs out of pocket.  You can also qualify for a home loan with bad credit, low credit scores, and high debt to income ratios.  Many renters today are still under the impression that you need 20% down payment for a home purchase which is not the case.  Very few home buyers have the 20% down payment for a home purchase.  VA loans and USDA loans do not require down payments.  FHA loans require 3.5% down payment and 100% of the down payment can be gifted by a family member.  Conventional loans only require 3% down payment.  If you live in a state where property taxes are paid in arrears such as the state of Illinois, you can apply your property tax prorations towards your down payments.  I have done hundreds of loans in the state of Illinois and a percentage of my mortgage loan borrowers have walked out with cash after closing on their home purchase because their property tax proration credits exceeded the amount of the down payment they needed and they did not have to cough up any closing costs because the closing costs was covered either by a sellers concession and/or a lenders credit towards a home buyer’s closing costs.  On many instances, the new home buyer’s new mortgage payment and housing expenses are less than their rental payments plus they get to write off the mortgage interest off their tax returns.  Homeownership is such a major benefit over renting for many folks.  The positives outweigh the negatives.  Renters who are currently renting an apartment or home should contact me right away at 262-716-8151 or email me at gcho@gustancho.com or complete our online mortgage application by clicking APPLY NOW for a fast pre-approval and to see what amount of mortgage you qualify for.

$100 HUD Home Purchase Program

As mentioned earlier, renters can qualify for a FHA loan with 3.5% down payment, Conventional Loans with 3% down payment, VA Loans with no down payment, and USDA Loans with no down payment.  There are parts of the United States where the U.S. Housing and Urban Development is offering the HUD $100 down payment program where it helps home buyers purchase homes owned by the U.S. Department of Housing and Urban Development.

 How Does The $100 HUD Home Purchase Program Work

There are certain requirements to qualify for HUD’s $100 down payment home purchase program.  You cannot purchase any home in the market place.  Home buyers need to look for homes that have been foreclosed by HUD and owned by HUD.  The U.S. Department of Housing and Urban Development is the parent of the Federal Housing Administration, also commonly know by the general public as FHA.  FHA is not a mortgage lender and is a government agency that insures mortgage loans originated and funded by private FHA approved mortgage lenders.  When a FHA loan borrower goes into default on their FHA loans, FHA insures the mortgage companies against the loss from the foreclosure.  HUD then becomes the owner of the foreclosed home and sells the foreclosed property.  To expedite the sale of foreclosed properties and unload the inventory of HUD owned foreclosed homes, HUD is promoting the $100 down payment home purchase program.  For home buyers who can afford the housing expenses of being a homeowner but who lack the necessary down payment for a home purchase, the HUD $100 home purchase program can expedite the potential home buyer to become a homeowner sooner than later.

$100 HUD Home Purchase Program Available In The Following States

Not all states are offering the $100 down payment HUD home purchase program.  Here are the following states that is offering the program:

Alabama, Arkansas, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Mexico, North and South Carolina, North and South Dakota, Oklahoma, Tennessee, Texas, Utah, Wisconsin, and Wyoming.

Related> Minimum down payment for home purchase

Related> Fannie Mae lowers down payment to 3%

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

Comments are closed.