How the FHA $100 Down Payment Program Supports Homeownership

What is the FHA $100 Down Payment Program?

The FHA $100 Down Payment Program is a specialized financing option that allows eligible buyers to purchase HUD-owned properties, also known as HUD homes, with a minimal down payment of just $100. These properties are typically homes that were previously financed with FHA loans and foreclosed, then transferred to HUD’s ownership. The program aims to make homeownership more accessible while helping HUD sell its inventory of foreclosed properties.

Eligibility Requirements for the FHA $100 Down Payment Program

To qualify for this program, potential buyers must meet several key criteria:

• Have a minimum credit score of 580

• Demonstrate stable employment and income

• Plan to use the property as their primary residence

• Meet FHA loan requirements

• Be able to qualify for an FHA-insured mortgage

• Purchase a HUD-owned property specifically marked for the $100 down payment incentive

Steps to Utilize the FHA $100 Down Payment Program

1. Get pre-approved for an FHA loan through an approved lender

2. Find a HUD-approved real estate agent

3. Search for eligible HUD homes in your target area

4. Submit a bid through your agent on HUD’s website

5. Complete the standard FHA loan application process

6. Provide the $100 down payment if your offer is accepted

Where to Find FHA $100 Down Payment Homes

HUD homes eligible for this program can be found in various locations across the United States. Here’s where to look:

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Resource	Description	Access Method
HUDHomeStore.com	Official HUD property listing site	Online search
Local HUD-approved agents	Direct access to listings	In-person consultation
HUD-approved lenders	Property databases and guidance	Phone or office visit

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Current Program Costs and Considerations:

• Down Payment: $100

• Closing Costs: 2-5% of purchase price

• Mortgage Insurance Premium (MIP):

  • Upfront: 1.75% of base loan amount

  • Annual: 0.85% of remaining loan balance

Prices, rates, or cost estimates mentioned in this article are based on the latest available information but may change over time. Independent research is advised before making financial decisions.

Benefits and Limitations

While the program offers significant advantages through its low down payment requirement, buyers should consider both benefits and limitations:

Benefits:

• Minimal upfront costs

• Access to FHA loan benefits

• Potential for immediate equity

• Opportunity for first-time homeownership

Limitations:

• Limited to HUD-owned properties

• Competition for available properties

• Property may need repairs

• Standard FHA loan requirements still apply

The FHA $100 Down Payment Program continues to serve as a valuable tool for making homeownership more accessible to qualified buyers. By reducing the initial financial barrier while maintaining standard FHA protections, this program helps transform the dream of homeownership into reality for many Americans who might otherwise struggle with traditional down payment requirements.