$100 down payment on hud homes?

[nlowplacez]

Is anyone familiar with this $100 down payment for HUD homes.  I've found a couple here in my city that look like they could have 20 to 30% instant equity, and it says you can qualify for a $100 down payment if you pay full ask price and finance through (FHA? i think).  Anyone done a deal like this or familiar with the details?

[JakeRodgers]

I believe that $100 DP that's advertised is for owner-occupied properties.

[nlowplacez]

k well i would be living in it for a couple years at least til i finish school.  do you know any more details or is it a scam.

[JakeRodgers]

No, not a scam at all, rather an incentive that HUD offers to get rid of homes they've had to reposess. I'm no expert in HUD homes; if I were you I'd check out their website for details on the programs and DP requirements, etc. Just remember that these houses are most likley in REALLY bad shape and need a lot of work to get up to speed. The few HUD homes that I"ve looked at had been through floods and were pretty rough. Hopefully you can get lucky and find one that's liveable that you can pick up for cheap and live in and fix up while living there. good luck to you.

[christopher w]

Also keep in mind that there are other factors that go into financing these properties. Not to mention that HUD typically will not pay any closing costs so you will need to come to the table with money.

[housebroken]

Here's a little more insight about HUD's $100 down program:
1. Owner occupants only and using FHA financing (notify your lender)
2. The program must be noted on the executed contract for purchase
3. The purchase price must be less than or equal to HUD's appraised "as-is" value
4. If buy price exceeds appraised value buyer must pay difference in cash
5. HUD will pay reasonable closing costs and a real estate commission up to 5%. There is a place on the contract to identify this amount.

Remember, however, that the highest "net" bid gets the property.  You will have up to 45 days to close the deal or incur additional cost.

If the home is in serious disrepair a good alternative is the FHA 203k program.
Any HUD approved agent (Realtor) sould be able to give you guidance.