Frequently asked questions regarding $100 down payment HUD Homes Program
Q: Which properties are eligible for the $100 down payment incentive?
A: Any property listed as available for FHA financing (203B, 203B with
repair escrow and 203K) will be eligible. However, the purchaser must
be an owner occupant to qualify and the full price offer must be accepted
after
the effective date. Properties with an accepted offer or currently under
contract will not qualify.
Q: What is a “full price offer?”
A: The current list price is a full price offer, even if the property
has been pricereduced. HUD will still pay up to 3% of the list price for
closing costs and up to 5% for the selling agent commission. This is a
great opportunity for buyers to purchase a HUD home at a reduced price
and with an affordable down payment.
Q: Are properties listed under special programs available for the
$100 down payment incentive?
A: Properties sold under the Good Neighbor Next Door Program currently
have this provision if FHA financing is used
Q: I won the bid on a HUD home, but bid more than the appraised value
to ensure that they would be awarded the property. Can I still buy the
home for $100 down?
A: The down payment amount should remain the same, but you would still
be required to bring in the difference between the accepted offer and
the appraised value in cash at closing.
Q: I was awarded the bid on an eligible property, but submitted the
offer
and contract using conventional financing. Will the incentives apply if
they switch to FHA?
A: As long as the property and bid meet the eligibility requirements
and an amendment to the sales contract changing financing is approved,
buyers may take advantage of the $100 down payment incentive. Please do
not hesitate to contact us for assistance and guidance regarding this
process.
Q: How long will this incentive program last?
A: HUD has not published the length of time these incentives will be offered.
Q: What is a repair escrow?
A: A repair escrow is an account set aside
at your closing which is used to pay for health and safety repairs to
your property. Click here for more on
repair escrows.