FHA $100 Down HUD Home Program
Two of the primary benefits of an FHA loan are the flexible credit score requirements the low down payment requirement. However, even though the down payment is reasonable, many home buyers still struggle to come up with the 3.5%. The FHA $100 down payment program can help.
What is the FHA $100 Down Payment Program?
The FHA $100 down payment program is available to anyone who wishes to purchase a HUD home as their primary residence and can meet the basic qualifications for an FHA loan. It is essentially an affordable no down payment, government backed mortgage program.
The program is available for the purchase of HUD homes only. Although the home must be lived in as a primary residence when using the FHA $100 down payment program, anyone can purchase a HUD home.
We have lenders in our network who are offering this great program. Simply complete the short loan scenario form and we will have an experienced loan officer contact you to get pre-approved. The form is just to begin a discussion and to answer questions without ordering a credit report.
If you are looking to buy a HUD home because you do not have a down payment, we can still help with down payment assistance so you can buy any home that may be fore sale.
FHA $100 Down Payment Requirements
These are the basic requirements for this special program:
- Primary residences of 1-2 units
- Eligible properties are single family homes, condos, manufactured homes and PUDs
- Loan terms of 10, 15, 20, 25, 30 year fixed or a 5/1 ARM
- For purchases only but can be combined with the FHA 203k rehab loan
- The purchase must be a full price offer for the HUD home
- At least 24 months since your last HUD home purchase
- Loan amount cannot exceed the FHA loan limits for that county
If you can meet, or the home meets all of the requirements above, then you may want to consider this program.
FHA $100 Down Payment Qualifications
The qualifications for the FHA program are the same as with any other FHA mortgage program with the exception of the down payment. 
- You must be a US citizen
- Minimum credit score of 580
- Down payment of $100
- 2-year work history
- Can fully document income and assets
- No bankruptcies within the past 2 years
For a full detailed explanation, please read our article on FHA loan requirements. The only difference will be the down payment.
Benefits of the FHA $100 Down Program
The primary benefit of this unique program is of course the small down payment and it is essentially a zero-down program.
The other benefit that is often not talked about is when you are buying the home from HUD, there is a good chance you are purchasing the home below market value. This could present an opportunity to build equity in the home quickly.
$100 Down for an FHA 203k Rehab Loan
The $100 down program can also be used for an FHA 203k rehab program. With this program, you are able to finance the purchase of the home plus the additional money needed to rehabilitate the home. Read our article on the FHA 203k rehab loan to fully understand the program.
Consider the fact that you may be buying a home that has recently been foreclosed upon. There is a very good chance that it may be in disrepair and the FHA 203k rehab loan can help with that.
$100 Down HUD Homes
FHA loans are government loans insured by the Federal Housing Administration (FHA). On occasion, one of these homes may end up in foreclosure if the owner misses multiple mortgage payments.
After the foreclosure, HUD may take ownership of the home and the lender’s loan balance will be covered by the mortgage insurance. HUD is now the owner of the piece of real estate and eventually be the seller of the home at auction.
Potential buyers must meet all of the eligibility requirements for an FHA loan with the exception of the usual down payment. Buying HUD properties is a great way to own your first home with an affordable mortgage program.
How to Buy a $100 Down HUD Home 
If you are looking to purchase a HUD home, you can find a list of HUD Homes for sale on the HUD Homestore website . You will see very few homes available on this website listing from HUD. This means you will have to buy just what I available or be very patient and wait for the right property to come along.
Prior to looking for a HUD home, it is important to first get a pre-approval from an FHA lender who understands FHA loans and the HUD program. That way, you will know the maximum amount you can possibly get approved for.
You will need to complete a full mortgage application, the lender will pull your credit and then assess your maximum loan amount. The loan officer will issue you a pre-approval based upon your income, debt, and credit history.
Once you found a home that you are interested in, you will need to contact a realtor who is HUD approved to submit your bid for you. If you plan to take advantage of this FHA program with just $100 down, then you must submit a bid for the full price. If you bid lower and are awarded the property, then you must use other financing.
Each HUD property purchased with an FHA loan will need to pass a standard FHA inspection. The inspections safeguard homebuyers from purchasing a home that is not safe, or is not habitable. If any repairs are needed based upon the inspection, HUD will have to make those repairs or you can apply for an FHA 203k which will allow you to purchase the home and also borrow the money needed to make the necessary repairs.
If you are a realtor you can visit this page to learn how to become a HUD approved realtor.
Challenges with the FHA 100 down program
The program seems like a great deal for first time home buyers or anyone who may struggle to find the down payment needed. However, you will face two real challenges with the program.
Home Availability – There is often a shortage of HUD homes available for sale. When a home does become available, there is competition for those homes from other buyers. If you do find a home, it may not meet your needs or be located in the area where you prefer to live.
Lenders Offering the Program – Although FHA makes this program available, most lenders do not offer it or lack the understanding of how it works. This means just because a lender offers FHA loans, it does not mean they will offer the HUD 100 down program. If you need help finding a lender, then contact us.
An alternative to the HUD program and what we recommend is to use down payment assistance to help with the down payment. Then, purchase any home that may be for sale and not just a HUD home. Read more about down payment assistance programs.
FHA 100 Down Frequently Asked Questions
Why does the FHA 100 down program exist?
The FHA 100 down payment program exists because HUD is looking to sell homes that were recently foreclosed upon. These homes were previously financed with an FHA loan. HUD does not want to maintain the homes and instead would prefer to have them sold to families who can live in and maintain them.
HUD 100 down program with repair escrow
Many people ask about the $100 down program with money also available for repairs. This would be a combination of the FHA 100 down program with the FHA 203k rehab program. When combined, you can purchase a home with just $100 down and also the money needed for repairs or home rehabilitation.
What is a HUD loan?
One version of a HUD loan is the FHA $100 down payment program which allows for the purchase of a home owned by HUD with just $100 down
What are the requirements for purchasing a $100 down HUD home?
The requirements for purchasing a home home follow the standard requirements for an FHA loan with the exception of the down payment. Read more about FHA loan requirements here.
Are there any income limits or credit score requirements for buying these homes?
There are no income limits for an FHA loan, but the credit score requirements are still in place. You will need scores over 500 to qualify.
Where can I find a list of available $100 down HUD homes?
You can find a list of available HUD homes on the HUD Homestore website
Are there any additional costs or fees associated with buying these homes?
You will have the standard closing costs for an FHA loan when buying a HUD home. You can read more about the FHA closing costs here.
Are $100 down HUD homes available nationwide or only in specific areas?
The $100 down HUD homes are available in every state. However, the number of homes available is based upon how many recent foreclosures there have been in your area.
How can I apply for the $100 down HUD home program?
You can start your application process here. Someone will reach back out to you today.
What is the maximum loan amount available for $100 down HUD homes?
The maximum loan amount is based upon the FHA loan limit for a home in your county and also how much you can qualify for.
HUD Home Statistics
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We can help you to find a HUD home and also finance it with the FHA 100 down program in the following states: states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.