HUD (the US Department of Housing and Urban Development) has announced a limited-time sales incentive program which allows qualified buyers to buy HUD homes with a down payment of only $100, as long as:

• The buyer will live in the property for at least one year (investors do not qualify for this incentive)
• The buyer offers the full asking price for the home, and
• The buyer uses an FHA loan for the purchase.

 Not all foreclosure listings are owned by HUD. The key is whether or not the homeowners had an FHA loan before they lost their house — if they did, the home goes back to HUD for re-sale; if not, the bank which owned the foreclosed mortgage owns the home and tries to re-sell it.

Those homes — owned by banks, because the borrowers did not have an FHA loan — do not qualify for this program.

Not all buyers qualify for the program either — you have to meet the qualifications for an FHA-insured loan.

How the program works

 For the first ten days, HUD only accepts offers from “owner occupied” buyers — that is, from people who intend to live in the home themselves. On the eleventh day, HUD may either pull the home to repackage/reprice it and list it again with a new 10 day bid deadline, or they will open up bidding to “non owner occupied” buyers — people who intend to rent the home to others.

Step 1 — Get pre-qualified for the $100 downpayment HUD Homes Program

Step 2 — Choose search area and type of home (e.g. Hartford County - 3 bedroom, 2 bath with 1,700 square feet or more)

Step 3 — Tour homes in your area which meet your requirements

Step 4 — Submit to readysetloan.com (Freedom Mortgage) offer to buy the home you’ve chosen

Step 5 — Compete with other offers on the same property, if HUD receives any

Step 6 — Close on your purchase using an FHA-insured loan.