Buy a HUD Home With a $100 Down Payment

 The HUD $100 down payment home purchasing program has been extended but there are a few rules and regulations. Even so, for perspective home buyers, this is a great program and a chance to buy a home if you don't have a lot of money to put down. In the past, you could finance a HUD home through the FHA for 97% of the selling price and you had to come up with the rest as the down payment. Now, by visiting your Realtor and having them pre-quality you with HUD's 100dollarHUDHome Offer to Buy, you won't put anything down except one-hundred dollars. And that's not all. If you choose a HUD closing agent, HUD will pay up to 3% of your closing costs and bonus your Realtor $500 bucks as well as paying up to 5% of their commission. So what are the rules and regulations?

First, visit a Realtor that is licensed to sell HUD homes in your area. Below are the rules for buyers as specified by HUD:

• The home you purchase must be your primary residence and you must live there at least one year.
• You must offer HUD's full asking price.
• You will have to obtain an FHA-insured loan that has a fixed rate for either 15 or 30 years.
• Your debt to income ratio must be 31%/43%.
• The maximum amount of the loan can't exceed $362,790.
• You must have a credit score of 580 or higher and if you have had a recent bankruptcy, it must have been discharged at least 24 months prior to your HUD home purchase.
• You must have two years of employment history.
• FHA mortgage insurance must be rolled into your loan.
• Your Realtor must pre-qualify you by submitting HUD's 100dollarHUDHome Offer to Buy.

This offer is good on owner-occupied purchases only meaning you must use the home as your primary residence and can be used on single-family homes, condos, and town homes. This offer is not available for investors who wish to buy and rent out a HUD home.

Most Realtors are licensed to sell HUD homes and have access to their house listings. HUD releases all new home listings every Friday morning and from that point a ten-day Exclusive Listing Period is in place in which only owner-occupied buyers may bid. HUD homes are priced at market value price so to ensure you have a chance of winning the bid, make sure you offer the market price and have your Realtor guide you.

In addition to the $100 down payment, HUD also offers the 203k Major and Light Rehab loans to help buyers purchase a HUD home that may need some repairs. The best part of this is that you can roll the cost of the repairs into your FHA-insured loan and for the light rehab loan will cover repairs up to $35,000. The major rehab loan will cover repairs over $35,000 and it can include almost anything including bathroom, kitchen, and utility room appliances.

If you are interested in purchasing a HUD home and taking advantage of this extended offer from the government, call your Realtor today and make sure to ask not only about the $100 down payment offer but if you can add a 203k home improvement loan to the deal as well.