Frequently asked questions regarding foreclosed homes for sale in the $100 down payment program
Q: Which foreclosed homes for sale eligible for the HUD $100 down
payment incentive?
A: Any of the foreclosed homes for sale through HUD which is 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 price reduced. 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 one of the thousands of
foreclosed homes for sale by HUD 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 one of the HUD foreclosed homes for sale in my area,
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 HUD foreclosure 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.