There are deal seekers in every market and the real estate market is no different.  If you have been considering the US Department of Housing and Urban Development’s 100 dollar down program as a great way to save when buying a HUD home, then you need to be sure that you understand the program completely before you seal the deal.

HUD has a bounty of programs that help prospective home buyers navigate and succeed in buying the home of their dreams; or something close to the home of their dreams.  Most of their programs are focused on the financial side of home buying as this is the biggest condition that holds people back from buying a home; money.  The $100 Down Program from HUD is one such program that is designed to attract buyers to the market to move the overstock inventory. 

More specifically the HUD $100 Down Program is an initiative to attract buyers to purchase homes using FHA financing and homes that are in post-foreclosure.  This means the homes have been repossessed, failed at auction and are now owned by the FHA or Federal Housing Administration.  In order to participate in the HUD $100 Down Program you must use FHA financing, the property must be used as the buyer’s residence and the purchase price of the home must be equal to or less than the appraised value of the property.

The obvious attraction to the HUD $100 Down program is, well, the $100 dollars down.  Most traditional real estate purchases require a deposit of around 10 to 20% of the home’s value.  Adding to the appeal is the fact that there are no more 100% financing offers being made since the market collapse in late 2007.  Additionally, with HUD homes the buyer sees additional savings as market prices are usually lower as well.

There are two sides to every coin and the considerations you need to make regarding the HUD $100 Down Program is no different.  You need to fully consider the fact that you are purchasing a foreclosed home with all of its issues.  Most foreclosures, even from HUD, are being sold “as-is”.  You also are required to use FHA financing for the loan which means you are locked into this one loan rate and offer and giving up your ability to shop around for new or better rates. 

Ultimately, the HUD $100 Down Program is a great way to purchase a home at a reasonable price with a small earnest deposit.  This often leaves the financial door open for the buyer to make repairs while living in or at the property.  If you are looking for a way to purchase a home without spending your entire nest egg on the deposit, then you should see if you qualify for the HUD $100 Down Program.  Let us help, contact Trent Realty to find the Florida HUD home of your dreams and learn how to see if you qualify for the HUD $100 Down Program.