My New Blog

After a short hiatus, the $100 down payment when buying a HUD Foreclosure program is back.   This is a great program if you are looking to buy a HUD foreclosure as your primary home.  Here are the general rules that you must know to qualify:

1.     This program is only when buying a HUD Foreclosure.

2.     You must buy the home for the List price or more to qualify for the $100 down payment

3.     You will still have closing costs to pay, but you can negotiate with HUD to pay all or some of them

4.     This is only when using a FHA loan.  So the same great benefits: great rate, low mortgage insurance, etc. 

5.     $100 is way less than the 3.5%(of the sales price) that FHA normally requires for your down payment.

6.     You can ROLL in the cost of some repairs.  This is determined on what the home is worth “as is”.  So, if sales price is $100k, but the as-is appraised value is $103,000, you could roll in $3000 of required repairs while simultaneously doing the $100 down program.

7.     We can use the appraisal that HUD has done for the property, saving you the cost of another appraisal($400).  As long as the appraisal is less than 6 months old. 

Not only is buying a foreclosure many times a great deal in itself.  But, buying one with only a down payment of $100 is fantastic news.  Since every dollar counts, in this economy.