HUD $100 Down
Want to put down only 100 bucks towards a home?! Then read carefully, because this is all you have to do. The name of the program you’ll need to look into in order to use just 100 dollars to put towards your next home is called the HUD 100 down payment program. First and foremost this program can only be used when purchasing a HUD home. What is a HUD home you ask? Well let me tell you. A HUD home is a property that has been foreclosed on that was originally financed using an FHA loan in order to purchase the property. Unfortunately, the homeowner was unable to continue making the payments for whatever the reasons may be, and the lender foreclosed on it. HUD then reimburses the lender for what is owed to the lender and HUD takes ownership of the property. Once HUD has ownership of the home, they will then have their asset manager secure it and assign it to a field manager who will eventually list the property for sale. So now that you know what a HUD home is and how it becomes available to the public for purchase, let’s talk about that program shall we. In order to qualify for this great program you will have to use FHA financing to purchase the property. The normal down payment for a FHA home loan is 3.5%. The main reason HUD offers the $100 down payment program is to sell HUD foreclosed homes fast and also to get owner-occupant into the homes. Although, the borrower can put down 100 dollars towards a down payment they still have to be able to come up with the funds for any other fees that are included in the purchasing process. HUD requires a buyer to submit with the Purchase Contact earnest money of $1,000 if the purchase price is over $50,000 and $500 if the purchase price is under $50,000. The HUD $100 Down Payment Program is an awesome way to buy a home if one does not have a lot of money for a down payment. It will allow the opportunity to purchase a home while the sales prices and the interest rates are affordable. This program is not nationwide. It is currently available in about half of the states. If you are interested in this program you should contact your local HUD real estate broker to see if it is being offered in your state. Those seeking into getting a HUD $100 down payment program should be cautious of the real estate agent that will be used when making this purchase. They should have a decent amount of experience with HUD homes, otherwise they could end up costing you a fortune.