Absolutely not! But if you’re a qualified buyer, you can use an FHA loan to buy one of HUD’s specifically designated homes for sale — with only a $100 down payment!
For a limited time, $100 down payments are available to owner-occupied home buyers when purchasing a HUD home for full price and using an FHA-insured new home loan.
This is a national program, and there are qualifying homes in every state. We showcase only a few homes here on our site; if your town is not listed, tell us about yourself on our pre-qualification page and we’ll get back to you with a custom list of homes in your area.
$100 Down Payment Rules & Regulations
First, visit a Realtor that is licensed to sell HUD homes in your area. Below are the rules for buyers as specified by HUD:
- The home you purchase must be your primary residence and you must live there at least one year.
- You must offer HUD’s full asking price.
- You will have to obtain an FHA-insured loan that has a fixed rate for either 15 or 30 years.
- Your debt to income ratio must be 31%/43% or less.
- You must have a credit score of 640 or higher and if you have had a recent bankruptcy, it must have been discharged at least 24 months prior to your HUD home purchase.
- You must have two years of employment history.
- FHA mortgage insurance must be rolled into your loan.
This offer is good on owner-occupied purchases only meaning you must use the home as your primary residence and can be used on single-family homes, condos, and town homes. This offer is not available for investors who wish to buy and rent out a HUD home.