The Department of Housing and Urban Development ("HUD") has a new buyer's incentive program allowing home buyers to use a $100 down payment under certain circumstances.
The $100 downpayment HUD program allows people to buy homes in which they plan to live, using an FHA loan, as long as they offer HUD the full amount at which the home is listed.
Buyers can structure their offer such that HUD also pays their reasonable closing costs -- so the only money they need to bring to their closing is the $100 downpayment.
The incentive program was established as a limited time offer.
HUD homes eligible for the $100 down payment program have all been foreclosed upon by their lenders; the loans involved in the foreclosure were FHA-insured. Other foreclosures on which the loans were not insured by the FHA do not become HUD homes and are not eligible for the $100 downpayment program.