Yes, you read that correctly. Regardless of what you may hear in the news (must have a 20% down payment), there are homes available to buy with only a $100 down payment. All a potential buyer needs is $100 for the down payment, 600+ credit score, the home must be their primary residence, and well, a pulse!
For more details on the program, you can go to HUD’s website here. For a quick look at some of the highlights:
- The home must be owned by HUD and requires an FHA loan to purchase the property.
- Buyer must give a full price offer on the home.
- Provisions are made to offset some (if not all) of the closing costs.
The pros to this program are obvious – a home buyer only needs $100 for a down payment and can use an FHA loan (with flexible credit qualifying) to buy the home.
The biggest downside to this program is location, location, location. The only properties eligible for the program must be owned by HUD. This makes targeting a home with a certain number of beds/baths, a specific neighborhood, or school district a little more difficult. It just depends on what is available.
Interested? If so, you need to find see the homes available. To do that, try this link. If you are in Georgia, go here.
Don’t believe everything you see on TV or read on the internet. You don’t need a 20% down payment to qualify for a mortgage. Homes can be purchased for as little as $100 down through this special FHA program. Generally, FHA loans only require a 3.5% down payment, and conventional loans only need 5% down. That is a far cry from the “20% needed” you may hear on the news!
Clay Jeffreys is a Mortgage Consultant with Dunwoody Mortgage Services, Inc. and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.” Dunwoody Mortgage Services seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing. For more information about Dunwoody Mortgage and available programs, please visit www.dunwoodymortgage.net.
