Get A House With Only A $100 Down Payment (FHA Loan)

Certified Mortgage Advisor
NMLS 1701021
Published 
December 9, 2020

Buying a home with only a $100 down payment

Now, you're going to learn how to purchase a home with only a hundred dollars down. I promise this is real. It's not clickbait and it's not some really expensive down payment assistance program.

How this works

FHA loans, allow you to do a hundred dollars down as a minimum down payment if you're purchasing a HUD REO or Housing and Urban Development Real Estate Owned, that means the home was a foreclosure and the owner is now FHA.

HUD Home Store

How do you find these homes? You can go to HUD Home Store.com but seriously, you can go get a home for a hundred dollars down on an FHA loan.

Requirements

Now, this needs to be a primary residence from one to two units. This cannot be an investment property. Again, you get a hundred dollars down compared to the normal 3.5% down, but you normally have to have on an FHA loan. Now, all other closing costs are normal. So you're still going to have an appraisal. You'll still have title fees. You'll still have recording fees, you'll have taxes and insurance.

Those are all going to be normal. The same cost that you run into on all other loans will still exist on this program, but your down payment, instead of being 3.5% is now only a $100. You'll need a 580 minimum credit score to be able to qualify for this. Also, you can not have purchased a HUD home within the past 24 months. If you're a first-time buyer, then that's not a big deal at all.

This is an awesome program

A HUD home is real estate-owned property. That means it was a foreclosure and HUD now owns it. So this is a really great program that you can use if you need a little bit more of a down payment here.

You can combine this with 203K

Something else that's really great is you can use this just to straight-up purchase the home, or you can actually use this in combination with a 203K. So you can put a hundred dollars down and be able to fund the rehab costs. If the home is not in its prime or local livable condition, most of these HUD foreclosures tend to need a little bit of work done. So that can be an incredible option for you. If you want a lower down payment.

Will still have the same FHA loan standards

Now keep in mind programs like this normally do carry a slightly higher rate than a traditional FHA loan. And you're still going to run into the same mortgage insurance that's going to be on there for the life of the loan, with every other FHA loan and the upfront mortgage insurance cost of 1.7, 5% added into the loan mountain. So same standards as almost every other FHA loan. You just get to do a hundred dollars down instead.

Talk with a loan officer
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