With the recent housing market crash and the credit crunch the options for
buying a home with no or low payment has been pretty much wiped out. But there
is one great option still available in some parts of the country and that is
buying HUD homes for sale by using the HUD $100 Down Program.

What Is a HUD Home?

First, we need to discuss what a “HUD home” is. A HUD home is a property that
has been foreclosed on that originally used FHA insured financing to purchase
the property. The homeowner could not make the payments for whatever reasons and
the lender foreclosed on it. HUD then reimburses the lender for what is owed to
the lender and HUD takes ownership of the property.

Once HUD takes ownership they will start the marketing process by assigning
the property to their Asset Manager in the district that the property is
located. The Asset Manager will secure the property and assign it to a Field
Manager. The Field Manager will then prepare the property for sale. It is then
listed with a local HUD-approved Real Estate Broker. This is when the property
is made available to the public for sale.

What is the HUD $100 Program?

OK, now to the good part, the HUD $100 Program. To be able to
take advantage of this great program you will have to use FHA financing to
purchase the property. The down payment is minimal. The
main reason HUD offers this program is to sell HUD foreclosed
homes fast and also to get owner-occupant into the homes. They believe people
who own their home will take care of it better than a renter thus improving the
neighborhood. This program is only for people who are going to buy the homes to
live in. It is not for investors.

Of course this is a government program which means there are some strings
attached to the program.

1. As mentioned above, it is for owner-occupants only.

2. You have to use FHA financing to purchase the home.

3. It is HUD homes for sale only, which are homes that have been foreclosed
on that was purchased with FHA financing.

4. Even though you only have to pay a minimal down payment you will still need the
required earnest money. HUD requires a buyer to submit with the Purchase Contact
earnest money of $1,000 if the purchase price is over $50,000 and $500 if the
purchase price is under $50,000.

This program is not nation-wide; it is currently being offer in about half of
the states. You should contact a local HUD approved Real Estate Broker to see if
it is currently being offer in your state. A word of caution, you need to make
sure that the real estate agent that you use is experienced in buying HUD homes
for sale. Buying a HUD home is a lot different then the normal real estate
transaction. An inexperienced agent can cost you thousands of dollars.

The HUD $100 Program is a great way to purchase a home if you do
not have a lot of money for a down payment. It will give you the opportunity to
buy a home now while the home prices and the interest rates are low.

Get more information about the HUD $100 Program.