This Article Is On $100 HUD Home Purchase Program For Home Buyers
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 than it actually is. Some renters are paying north of $1,000 per month. Some who are renting single-family homes are paying closing to $2,000 per month in many parts of the country. As long as buyers have documented income such as hourly wages, salaried wages, and positive 1099 income, they can qualify for a home loan with little down payment, no down payment, and no closing costs out of pocket. Home Buyers can also qualify for a home loan with bad credit, low credit scores, and high debt to income ratios.
Down Payment Required On Home Purchase
Many renters today are still under the impression they 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
- 100% of the down payment can be gifted by a family member
- Conventional loans only require 3% down payment
Borrowers living in a state where property taxes are paid in arrears such as the state of Illinois can apply property tax prorations towards down payments.
Using Property Tax Proration Credits Towards The Down Payment On A Home Purchase
The team at Gustan Cho Associates has done hundreds of loans in the state of Illinois:
- Percentage of my borrowers have walked out with cash after closing on their home purchase
- This because their property tax proration credits exceeded the amount of the down payment they needed
- They did not have to cough up any closing costs
- Closing costs were 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 us at Gustan Cho Associates Mortgage Group at 800-900-8569 or text us for a faster response. Or email us at email@example.com. Complete our online mortgage application by clicking APPLY NOW for a fast pre-approval and start our pre-approval process.
$100 HUD Home Purchase Program
As mentioned earlier, renters can qualify an FHA loan with a 3.5% down payment, Conventional Loans with a 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. 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. Cannot purchase any home in the market place. Homebuyers 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 known by the general public as FHA. FHA is not a mortgage lender. FHA is a government agency that insures mortgage loans originated and funded by private FHA approved mortgage lenders.
The Role Of FHA
When homeowners go into default on their FHA loans, HUD 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 homebuyers 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.
May 30, 2018 - 4 min read