HUD $100 Down Payment Home Purchase Program

Unlock Your Dream Home with Just $100 Down: How the HUD $100 Down Payment Program Can Make Homeownership a Reality in 2024

If you’ve been dreaming of owning a home but need a hefty down payment, think again! The HUD $100 Down Payment Program is a game-changer, making purchasing a home with just $100 down possible. Yes, you read that right—only $100.

This incredible opportunity is designed to help more people achieve the dream of homeownership, especially those who might otherwise be priced out of the market. Let’s dive into everything you need to know about this unique program, how it works in 2024, and why it could be your ticket to owning a home this year.

What Is the HUD $100 Down Payment Program?

The HUD $100 Down Payment Program is a special initiative by the U.S. Department of Housing and Urban Development (HUD) aimed at making homeownership more accessible. It allows eligible buyers to purchase HUD-owned homes with a down payment of just $100 when using an FHA loan. These homes are often properties that have been foreclosed upon and are now owned by HUD. The program is part of HUD’s broader mission to stabilize communities by helping to reduce the number of vacant properties, which can negatively impact neighborhood values.

Key Takeaway: The HUD $100 Down Payment Program is designed for people who want to purchase a home as their primary residence but may not have the traditional 3.5% down payment typically required for FHA loans.

Who Is Eligible for the HUD $100 Down Payment Program?

This program is open to all eligible buyers who plan to use the property as their main home. Whether buying a home for the first time or looking to move, you may qualify for this program. However, there are some specific requirements to keep in mind:

1. Primary Residence Requirement: You must live in the home you buy as your main residence. Investors seeking to purchase properties for renting purposes cannot participate in this program.
2. FHA Loan Required: You must qualify for the $100 down payment option using an FHA loan. This government-backed loan is known for its flexible credit requirements and low down payment options.
3. HUD-Owned Properties Only: The program applies exclusively to HUD-owned properties, which are homes that have been foreclosed upon and are now owned by the government. These homes are often available at a lower price point, making them even more affordable.
4. 580 Credit Score Minimum: You’ll need a credit score of at least 580 to qualify. While this is lower than many conventional loans, it’s essential to meet this requirement to be eligible for the program.
5. Full-Price Offer Required: When you find a HUD-owned home you want to buy, you must submit a full-price offer. These homes are typically priced to sell, so there’s no room for negotiation under this program.
6. FHA Minimum Property Standards: The home must meet FHA’s Minimum Property Standards, ensuring that it is safe, secure, and structurally sound. If the property doesn’t meet these standards, you might need an FHA 203(k) loan to finance the necessary repairs.

Pro Tip: If you’re unsure about your eligibility, speak with a licensed loan officer who can explain the requirements and help you determine if this program is right for you. Speak With Our Loan Officer for Mortgage Loans

The Benefits of the HUD $100 Down Payment Program

The most significant benefit of the HUD $100 Down Payment Program is, of course, the incredibly low down payment requirement. But that’s just the beginning. Here’s why this program is such a valuable opportunity for homebuyers in 2024:

• Minimal Out-of-Pocket Costs: With just $100 down, you don’t need to have a large amount of cash saved up to buy a home. This makes homeownership accessible to more people, especially those struggling to save for a traditional down payment.
• Combines with FHA 203(k) Loans: If the HUD home you want needs repairs, you can use the $100 down payment program along with a 203(k) loan. With this option, you can finance the home purchase and renovation costs in one mortgage.
• Helps Revitalize Communities: When you buy a HUD-owned home, you help improve neighborhoods by filling empty properties. This can raise property values in the area and help keep the community stable.
• Fixed-Rate and Adjustable-Rate Options: You can choose fixed-rate mortgages with terms of 10, 15, 20, 25, or 30 years or a 5/1 adjustable-rate mortgage (ARM). This gives you the flexibility to finance your home in the way that best suits you.

Bottom Line: The HUD $100 Down Payment Program offers a unique opportunity to become a homeowner with minimal upfront costs while potentially improving the community you move into.

How to Find and Purchase a HUD-Owned Home

Buying a HUD-owned home through the $100 down payment program is straightforward but requires some specific steps. Here’s how you can get started:

1. Find a HUD-Owned Home: HUD-owned homes are listed on the HUD Home Store website. You can search for properties eligible for the $100 down payment program in your area. These homes are usually sold “as-is,” meaning you’ll need to be prepared for any repairs or updates they might need.
2. Work with a Real Estate Agent: Working with a real estate agent experienced in HUD homes is essential. They can guide you through the process, help you place a bid, and ensure you meet all the requirements.
3. Submit a Full-Price Offer: Once you’ve found a home you’re interested in, you’ll need to submit a full-price offer through your agent. Remember, these homes are priced to sell quickly, so it’s important to act fast.
4. Apply for the FHA Loan: Once your offer is accepted, you’ll need to apply for an FHA loan. The application process for this loan is like any other FHA loan, but make sure to specify that you’re using the HUD $100 Down Payment Program.
5. Complete the Purchase: Once your loan is approved, you’ll complete the purchase process and officially become a homeowner! Your down payment will be just $100, making this one of the most affordable ways to buy a home.

Tip: Be sure to budget for closing costs and any potential repairs. While the down payment is minimal, there may be other expenses to consider.

2024 Updates to the HUD $100 Down Payment Program

As we move into 2024, there are a few important updates to the HUD $100 Down Payment Program that you should be aware of:

Expanded Eligibility for Good Neighbor Next Door Program

In 2024, the HUD $100 Down Payment Program can be combined with the Good Neighbor Next Door (GNND) initiative, offering even more savings. Eligible buyers—such as teachers, law enforcement officers, firefighters, and EMTs—can now get up to 50% off the purchase price of a HUD-owned home, in addition to the $100 down payment. This is a significant update that could save you thousands of dollars.

New Financing Options for Manufactured Homes

The program offers more financing options for manufactured homes to help buyers follow HUD’s $100 down payment guidelines. This is great news for anyone seeking affordable housing options in 2024.

Enhanced Online Resources

HUD has improved its online resources, making it easier for potential buyers to find HUD-owned homes and understand the purchasing process. The updated HUD Home Store website offers more user-friendly search tools and detailed property information.

Updated FHA Loan Limits

In 2024, FHA loan limits have increased in many areas to reflect rising home prices. This means you might be able to afford a more expensive home under the program than you could in previous years. Be sure to check the updated limits in your area when considering your options.

Take Note: These updates make the HUD $100 Down Payment Program even more attractive and accessible to a broader range of homebuyers. 

Click Here for Mortgage Loans Today

Frequently Asked Questions (FAQs) About the HUD $100 Down Payment Program

• Here are answers to some common questions about the HUD $100 Down Payment Program:

• 1. Can I use the HUD $100 Down Payment Program if I’m not a first-time homebuyer? Yes, you don’t need to be a first-time homebuyer to qualify. However, you must intend to use the property as your primary residence.

• 2. Is it possible to bargain for the price of a HUD-owned home? No, you must submit a full-price offer to qualify for the HUD $100 down payment program. These homes are priced to sell quickly, so there’s no room for negotiation.

• 3. What types of homes are eligible for this program? Eligible properties include one- to two-unit homes, manufactured homes, condos, and planned urban developments (PUDs). The property must meet FHA’s Minimum Property Standards.

• 4. Can I combine the HUD $100 Down Payment Program with other FHA programs? Absolutely, you can pair this program with a loan for necessary repairs or renovations, and you might also qualify to combine it with the Good Neighbor Next Door Program.

• 5. How do I know if a home is HUD-owned? You can search for HUD-owned homes on the HUD Home Store website. Properties listed there are eligible for the $100 down payment program, provided they meet all other requirements.

• 6. What happens if the property I’m interested in doesn’t meet FHA’s Minimum Property Standards? If the property does not meet FHA’s Minimum Property Standards, you can still use the HUD $100 Down Payment Program by combining it with an FHA 203(k) loan. This allows you to finance the purchase and the cost of necessary repairs into one loan, ensuring the property meets all required standards.

• 7. Can I use gift funds or down payment assistance with the HUD $100 Down Payment Program? While the program already requires only $100 down, if you need assistance with closing costs or other expenses, you may be able to use gift funds or down payment assistance programs. It’s important to discuss these options with your loan officer to understand what’s allowed and how they might affect your loan terms.

• 8. How long does the process take from finding a HUD home to closing on it? The home-buying process can take different amounts of time. Several things, like finding a home, getting a loan, and making repairs, can affect how long it takes. Usually, it takes 30 to 60 days. Working with a good real estate agent and loan officer can help make the process easier.

• 9. What are the closing costs of the HUD $100 Down Payment Program? Even though the down payment is only $100, you must consider closing costs. These costs may include fees for the property appraisal, loan origination, title insurance, and other related expenses. Your loan officer can give you a detailed estimate of the closing costs so you can plan your budget accordingly.

• 10. Is the HUD $100 Down Payment Program available in all states? Yes, the HUD $100 Down Payment Program is available nationwide, but the availability of HUD-owned properties varies by location. Some areas may have more HUD homes available than others, so it’s important to check the HUD Home Store regularly or work with a real estate agent who specializes in HUD properties in your area.

If you have any questions about HUD $100 Down Payment, please contact us at 800-900-8569. Text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays. Speak With Our Loan Officer for Mortgage Loans

This blog about HUD $100 Down Payment Home Purchase Program was updated on August 29th, 2024.