| On most FHA loans, a homebuyer would have to | | | | Are There Special Requirements? |
| put down a 3.5% down payment. Recently, they | | | | HUD does have some requirements in order for |
| are now offering loans with 100% financing and | | | | you to qualify for the $100 down payment |
| only a $100 down payment for owner-occupied | | | | hudhome opportunity. They are as follows:o It |
| homes. So how does the HUD home program | | | | must be your primary residence and you must |
| work? | | | | live there for one year.o You must offer HUD's |
| HUD does have special requirements on the $100 | | | | full asking price to be considered.o You must |
| down payment hud homes for sale. All buyers | | | | obtain and FHA-insured loan that has either a fixed |
| must live in the property for a least one year and | | | | rate or an adjustable rate and is 30 or 15 years in |
| is not available to investors. The buyer must offer | | | | length.o Your debt to income ratio must be 31% |
| the full asking price of the HUD home and the | | | | 43%.o The maximum amount of the loan cannot |
| buyer must use an FHA loan for the purchase of | | | | exceed $362,790.o This HUD offer is good on all |
| the hudhome. You must also meet the | | | | HUD single-family homes, townhouses, planned unit |
| qualifications for an FHA-insured loan. | | | | development homes, and condos.o You must |
| How Does the Program Work? | | | | have a minimum credit score of 580 and if you |
| On every Friday, HUD lists their foreclosed homes | | | | recently had a bankruptcy, it must have been |
| for sale. The first ten days, HUD accepts offers | | | | discharged 24 months prior to your hudhome |
| only from owner-occupied buyers. This is called | | | | purchase.o You must have two years of |
| the exclusive listing period. On the eleventh day, | | | | employment history and FHA mortgage insurance |
| they can pull the listing to re-price it or open up | | | | is required for all $100 down payment HUD |
| the bidding to non-owner-occupied buyers. This | | | | homes. |
| special program is good for those owner-occupied | | | | How Do I Start? |
| interested buyers in that first ten-day timeframe. | | | | You can speak with your real estate broker who |
| First, you can visit your Realtor to get | | | | can tell you what HUD homes are available for |
| pre-qualified for the program. This is a process | | | | sale in your area. You will work with them to get |
| where you submit personal information to HUD | | | | you pre-qualified for the $100 down payment |
| and they will give you pre-approval for the | | | | option and obtain an FHA-insured mortgage |
| program. Next, you search for a hudhome for | | | | through a conventional lender, such as your local |
| sale. Once you decide on a residence, your real | | | | bank. |
| estate broker will submit the offer to buy. You will | | | | This special program will not last forever, so if |
| be competing with other buyers within the first | | | | you are interested in purchasing a foreclosed HUD |
| ten days. One you win the bid, you purchase the | | | | home, contact your realtor today to get started. |
| hudhome using an FHA insured loan. | | | | |