Buy a House of $100 Down!

It’s true! If you’ve heard the news, you can buy a house for $100 down. There are a few rules of course. You have to owner occupy the house and you and the house have to qualify for an  FHA loan. BUT, now is the time to act on this great opportunity!

By: Carrie Bay

HUD has approved a program aimed at putting foreclosed homes back into the hands of owner-occupant buyers.

In select states, from now into October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home.

The buyer must be an owner-occupant, utilizing financing insured by the Federal Housing Administration (FHA). Standard FHA underwriting guidelines apply, and the sale must be for the full amount of the current list price.

The $100 down payment incentive program has been approved for two of HUD’s four national regions – the regions managed by the Denver Homeownership Center and the Atlanta Homeownership Center. HUD homes in the states listed, as well as the Caribbean are currently eligible for the program.

Denver Homeownership Center’s Jurisdiction:

  • Arkansas
  • Colorado
  • Iowa
  • Kansas
  • Louisiana
  • Missouri
  • Minnesota
  • Montana
  • Nebraska
  • New Mexico
  • North Dakota
  • Oklahoma
  • South Dakota
  • Texas
  • Wisconsin
  • Wyoming
  • Utah

Atlanta Homeownership Center’s Jurisdiction:

  • Alabama
  • Florida
  • Georgia
  • Kentucky
  • Illinois
  • Indiana
  • Mississippi
  • North Carolina
  • South Carolina
  • Tennessee
  • Caribbean

HUD’s $100 down payment incentive program can also be applied to an FHA 203k loan, which can be used to fund repairs and renovations on the home. The 203k program allows buyers to finance both the mortgage and additional money for rehabilitation needs with a single government-insured loan.

Matt Martin, CEO of Matt Martin Real Estate Management (MMREM), says this is one of the most exciting features of the new incentive program and should drive a lot of exposure to FHA’s 203k offering.

MMREM is under contract with HUD to assist with disposition sales of its repossessed homes. MMREM handles properties throughout 16 states, or about a third of HUD’s REO portfolio.

With an FHA 203k loan, “buyers can find a property that needs some TLC, fix it up however they want to, and finance the whole thing for $100,” Martin explained.

“MMREM is excited to work with this recent initiative, in a way that it supports putting HUD homes back into the hands of homeowners,” Martin said.

In addition to $100 down instead of FHA’s typical 3.5 percent down payment, HUD says it will also cover up to 3 percent of the closing costs in most cases.

If you are planning to buy or sell in Fremont County, Canon City, Florence or Penrose, please contact Dena Stevens! Thanks!

 

About Dena Stevens (719) 369.9087

Putting the 'real' into REALTOR since 2004 Ask about vacant land, ranch land or residential properties. Loyalty and devotion are things buyers and sellers expect from their Realtor as well as the fiduciary responsibility of due diligence. Dena is a certified Ecobroker, focused on sustainability, energy efficiency and the environment and is a Certified Sales Professional from the Association of Home Builders. Specialties: A client once said "you put the 'real' into REALTOR" to me. I took it as a complement and I've been using it ever since, I'm a no nonsense kind of person. I've been helping people buy and sell real estate since 2004. Associate Broker REALTOR Certified Sales Professional (CSP) Short Sale Foreclosure Resource (SFR) Ecobroker GHSP The Fair Housing Act is a federal act in the United States intended to protect the buyer or renter of a dwelling from seller or landlord discrimination. Its primary prohibition makes it unlawful to refuse to sell, rent to, or negotiate with any person because of that person's inclusion in a protected class.
This entry was posted in Colorado Real Estate. Bookmark the permalink.

Comments are closed.