That’s right.  From now until 10/1/12 you too can buy a HUD home for only $100 down.

First off, what’s a HUD home you may ask?  A HUD home is simply a foreclosure that was purchased using an FHA loan.  Millions of Americans have purchased homes using FHA Financing which insures the lender that if a borrower experiences a foreclosure then the bank is paid for the outstanding note.  The homes then goes through the typical foreclosure process and then are presented to the public for sale through HUD.  HUD’s mission is to get these homes back into the hands of people that are looking for an owner occupied primary residence.  They do not allow investors to bid on the property for about 3 weeks from when they are initially listed.  The general public gets first shot at getting a new home for a great price.

So how does the $100 down program work?

• The offer price must be the full listing price.
• The down payment requirement is only $100.
• You must finance using an FHA mortgage.
• The maximum loan amount can’t be more than 100% of the appraised value.