That’s all you’ll need for a down payment to buy a foreclosure offered for sale by the government.
This sounds like a heck of a deal: Rather than requiring a 3.5% down payment on foreclosures it’s trying to sell, HUD now only wants $100 down to close the deal.
Yes, folks, the U.S. Department of Housing and Urban Development has brought back the $100 down payment plan in Southern and Western states. It could be a tremendous opportunity for some people — first-time homebuyers or perhaps those who are close to retirement and are looking to downsize to a smaller home. (Some of these are modest homes in locations where jobs may be scarce. Others are large homes in metro areas.)
The $100 down payment incentive is only available if the purchase price of the home is equal or less than the appraised value of the home. If you have an accepted bid for over the appraised value of the home you must bring the difference as down payment to the closing.
So, what might you buy with $100 down? You can find a database of HUD-owned homes here. There’s quite a range, judging from the descriptions and photos of the properties. And the list can change every day.
The information about each home is detailed and includes the price, how long the property has been listed, and whether the original list price has been reduced. That can be handy information, suggesting you may be successful with a bid below the stated price.
From the looks of some of the homes we checked out, it’s a good thing your $100 will also gain you admission to HUD’s 203k loan program, which can pay for repairs and upgrades. But, remember, gorgeous homes can also be found.