Have You Heard About the FHA $100 Down Program?

Vacant and abandoned properties tend to negatively impact the communities in which they are located. When a home goes through foreclosure and its previous owners move on, it can sometimes take a while before the process is completed, the property sold, and new owners take occupancy.

In the meantime homes may deteriorate, not be adequately maintained, and fall into disrepair. According to a report in the Winter 2014 issue of Evidence Matters, a publication from the HUD Office of Policy Development and Research, vacant properties are linked to an increase in crime rates and a decrease in property values.

In an effort to speed up the rehabilitation and reintegration of HUD owned homes (properties acquired by HUD as a result of foreclosure on FHA insured mortgages) as safe and affordable housing, the Federal Housing Administration seeks out ways to make buying these homes easier, and less costly. One perfect example is the $100 Down program.

Saving for a large down payment is one of the biggest barriers to homeownership. The $100 Down program allows qualified purchasers of HUD owned homes to make a down payment of just one hundred dollars. The home must be owner occupied following the purchase and the buyer cannot have purchased a HUD owned property within 24 months.

$100 Down Basics

• 600 minimum qualifying credit score (580 Correspondent Delegated).
• Available in 10, 15, 20, 25, and 30 year fixed terms – 5/1 Hybrid ARM option available.
• Eligible properties include 1 – 2 unit primary residences, Manufactured Housing, Condominiums and PUDs.
• Allows qualified purchasers of HUD owned homes to make a down payment of just $100.
• The home must be owner occupied following the purchase and the buyer cannot have purchased a HUD owned property within 24 months.
• The $100 down payment incentive must be included on the executed sales contract.

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Tags: FHA