Great news for homebuyer trying to purchase a home with little to NO money down. The USDA mortgage is a fantastic option for 100% financing, however, not all home buyers meet the eligibility factors. These buyer may want to look into the HUD $100 down program. The HUD 100 down loan is one other less known option for 100% financing here in Florida. Many buyers are not aware that FHA and HUD have a special 100 dollars down mortgage program, mainly because this is a specialty program that very few lenders and brokers the offer the program .
For more information just submit the short Info Request Form on the right side of this page for fast service. Mobile users can find the Info Request Form here. You can also contact us at 7 days a week at ph: 800-743-7556
To begin we need to discuss what exactly is a HUD owned property and how you find one. A HUD home is a house that has been foreclosed on that had homeowners that originally used a FHA mortgage to purchase the property. The homeowner could not make the payments for whatever reasons and the bank was forced to foreclosed on the house. HUD then reimburses the lender or bank for what is owed to the lender and HUD takes ownership of the property. Once HUD takes back ownership they will start to prepare the property for sale. It is then listed with a local HUD approved Real Estate Broker. This is when the property is made available to the public for bid!
Let’s talk now about the good part, the HUD 100 Down Payment Program. To be able to take advantage of this great program you will have to use FHA financing to purchase the property. The normal down payment for a FHA home loan is 3.5%, max 96.5% financing. The main reason HUD offers the $100 down payment program is to sell HUD foreclosed homes fast and quickly get owner occupant into the homes. They believe people who own their home will take care of it better than a renter thus improving the overall neighborhood. This program is only for people who are going to buy the homes to live in. The HUD 100 down program is not for investors or second homes. Homes that are being sold by other sellers ARE NOT eligible, please note this. Florida home buyers can find a complete list of approved HUD owned homes in your area by clicking here.
So what are the benefits of the HUD 100 down program here in FL?
- Flexible credit qualifying under normal FHA Mortgage Requirements.
- $100 down payment instead of the usual 3.5% minimum FHA requirement.
- Eligible for up to $5,000 in escrowed repairs.
- HUD can also pay buyers closing costs as part of the contract negotiations.
Even though buyers only have to pay $100 down payment, they will still need a good faith deposit to hold in escrow when their contract is taken. HUD requires a buyer to submit with the purchase contact earnest money of $1,000 if the purchase price is over $50,000 and $500 if the purchase price is under $50,000. Buyers really need to use a realtor to purchase a HUD home, please contact us if you need a recommendation in your area.
Florida homebuyers that have questions about the HUD 100 down program guidelines and requirements can call us at ph: 800-743-7556 or just submit the quick Info Request Form on the right side of this page. Mobile users will find the Info Request Form here.
Please visit www.FhaMortgageSource.com for more information. FHA HUD 100 Down Mortgage