Posts Tagged ‘$100 HUD home’

Little or no money down? No problem!

August 26, 2009

Gone (long gone in fact) are the days of easy 100% financing. Conventional loan programs using 80/20 combo loans or 100% financing with Private Mortgage Insurance are a thing of the past. In fact, the minimum down payment for a conventional loan in Georgia is now 10%.

Think about that figure for a minute. On a $250,000 loan, the minimum down payment is $25,000. While conventional loans do allow gift funds, many buyers do not have that much money available for a down payment (especially first time home buyers).

So… conventional loans require 10% down. That is good to know, but what about the borrowers who do not have that much for a down payment? I’m glad you asked! There are several programs available that require little or no down in order to buy a home.

  • FHA loans: FHA loans require only a 3.5% down payment along with lighter credit and cash reserve requirements.
  • FHA 203K Streamline: This program also requires a 3.5% down payment, but there are provisions allowing borrowers to finance an additional $5,000-$35,000 for non-structural repairs/updates to a home (new roof, carpet, paint, siding, remodel kitchen/bath, etc.)
  • $100 HUD Homes: Many foreclosed homes owned by HUD are available to buy with only a $100 down payment using an FHA loan. The offer must be at the property’s asking price, and if accepted, the down payment would only be $100.00!
  • VA loans: VA loans allow 100% financing. Traditionally, these loans are available to U.S. Veterans and their spouses. However, the VA Vendee program allows borrowers to purchase VA foreclosed homes using a VA loan regardless of their U.S. Veteran status.
  • USDA/Rural Development loans: USDA loans also allow up to 100% financing. Property eligibility is based its location. If a property lies outside of a metro-area, there is a chance it would be eligible. To know for sure, you can go here to check.

Even though the current lending environment is definitely not what it used to be, options remain for borrowers with little or no money down. While some of the loan programs depend on the property itself, a 3.5% down payment can get borrowers into most homes on the market. Feel free to contact me for more information on any of these loan programs.

It’s nice to know that even now, you don’t need to break the bank in order to own a home!

It’s nice to know that even now, you don’t need to break the bank in order to own a home!

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.

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Buy a home with a $100 down payment

May 11, 2009

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.