Frequently asked questions regarding HUD $100 program
Q: Which properties are eligible for the HUD $100 program?
A: Any property listed as available for FHA financing (203B, 203B with
repair escrow and 203K) will be eligible. Remember, the program allows
a qualified buyer to buy a HUD home using a down payment of only $100.
However, the purchaser must be an owner occupant to qualify. 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 a HUD home at a reduced
price and with an affordable down payment.
Q: Are properties listed under special programs available for the
HUD $100 program?
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 HUD $100 program. Please do not hesitate to
contact us for assistance and guidance regarding this process.
Q: How long will this HUD $100 program incentive last?
A: HUD has not published the length of time these incentives will be offered.