$100 Down Payment Buyer Program
For a Limited time, if you're a qualified buyer, you can use a special FHA loan to buy one of HUD's specifically designated homes for sale -- with as a little as a $100 down payment!
This program is only available to owner-occupied home buyers who purchase a HUD home for full price and use an eligible FHA-insured new home loan. You may also be able to include in your mortgage up to $5,000 in repairs to the home.
Not all foreclosure listings are owned by HUD. Only the homes of homeowners who had an FHA loan and then lost their house go back to HUD for re-sale. Homes of homeowners that did not have FHA loans are sold by the bank which owned the foreclosed mortgage.
See some common questions and answers about this program or Contact Mitch to Answer Questions & Help You Find a HUD Home
To Qualify for the $100 down payment HUD HOME Program You Must: Email this page 
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Owner occupancy |
Use the home as your Primary Residence -- You must live in the home for at least one full year |
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Purchase price |
Make a full price offer to HUD (i.e. must offer HUD's full asking price) |
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Eligible Loans |
A Mortgage of $362,790 or less using an FHA Fixed Rate 30 year or 15 year, FHA Secure 30 or 15 year, FHA Stimulus 5/1 ARM (Adjustable Rate Mortgage) |
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Earnings & Debts |
Be able to show enough earnings so that your debt to income ratios are 31% / 43% |
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Eligible Properties |
Purchase a Single family residence, townhouse, Planned Unit Development home (PUD) or a condominium |
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Credit History |
• Have a minimum credit score is 580(*) |
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Employment & Residency |
Have a valid social security number and be able to show 2 years or longer of employment history. |
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Mortgage Insurance |
Have FHA mortgage insurance on the loan |
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Note: |
Reserves are NOT a requirement for the program |
* = Many lenders require a middle credit score of 620 or higher | ** = A social security card is not acceptable evidence of work status
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Frequently asked questions about the $100 down payment HUD Homes Program Email this page
Q: How can I tell if a property is eligible for the $100 down payment incentive?
A: Any home listed as available for FHA financing (203B, 203B with repair escrow and 203K) will qualify
Q: What is a “full price offer?”
A: The current list price is a full price offer, even if the property has been previously reduced. Note:HUD will still pay up to 3% of the list price for closing costs and up to 5% for the selling agent commission.
Q: Are properties sold under the Good Neighbor Next Door Program available for the $100 down payment incentive?
A: Yes, if FHA financing is used
Q: What if I but bid more than the appraised value to ensure that i am awarded the property. Can I still buy the home for $100 down?
A: Yes but you will also be required to bring any difference between the accepted offer and the appraised value in cash at closing.
Q: I won a bid on an eligible property with a full price offer based on using conventional financing. Can I switch to an eligible FHA loan?
A: You will need to submit and have approved an amendment to the sales contract changing the financing
Q: Is there a date that this program ends?
A: HUD has not published the length of time these incentives will be offered.
Q: What is a repair escrow?
A: A repair escrow is an account set aside at your closing which is used to pay for health and safety repairs to your property. Click here for more on repair escrows.
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What is a Repair Escrow in the $100 Down Payment HUD Program Email this page
Before HUD place a home for sale, they hire an inspector to prepare a "Property Condition Report" -- This is an inspection of the property. This report looks at the home's structure, exterior, roof, plumbing, electrical system, HVAC system, interior and appliances.
Many times, HUD's own inspection will list repairs needed for the health and safety of new owners. HUD sells all homes "as is," which means these repairs cannot be completed until after you close on the home. So, HUD will list needed repairs on its property condition report and in the home's listing. HUD will also list the dollar amounts for the repairs, and when the total amount of the repairs is less than $5,000, HUD will allow you to create an escrow account to pay for these repairs after you close.
This repair escrow amount is included as part of HUD's list purchase price for the home. For example, if a home is for sale at $127,000 with a $2,000 repair escrow, you do not have to have the extra $2,000 to purchase the home -- Instead the $2,000 is set aside at closing in an escrow account by HUD from the $127,000 purchase price.
HUD and FHA all suggest that you obtain your own home inspection -- that is, that you hire a home inspector of your own once your bid has been accepted by HUD. If your inspection finds health and safety issues which are not listed by HUD, they can typically be added to your contract as additional repair escrow items; these additional repair escrow funds are added to the purchase price of your house, but can be completely financed in your new mortgage under HUD's $100 down payment program. The amount needed for your own repair escrow items is based on a written estimate by a licensed contractor, plus an additional 10% to that estimate. If the total including this 10% over figure is still less than $5,000, HUD can add these items to the repair escrow.
In the example above, if the $127,000 property has an extra $850 health and safety repair, HUD may approve $935 (that's $850 x 110%) to be added to the repair escrow. The revised purchase price on the house is $127,935, of which $2,935 is set aside for repairs. Using the $100 down payment program, your down payment requirement is still just $100.
Typical repair items which can be paid for using a repair escrow include:
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