Most homebuyers aren’t aware that FHA/HUD has a little-known program called the HUD REO $100 Down Program. Yes! $100 down home loans here in Florida is still possible. In most cases, the FHA loan program requires 3.5% down payment, not the HUD $100 down program. This loan is perfect for new first time buyers entering the housing market with little to no money for large down payments.
The HUD $100 down program is available in 27 states across the U.S., Florida included. The HUD $100 Down program makes government owned foreclosures available for purchase with just a $100 down payment. And, these homes are available with an insured FHA loan for owner-occupants. In addition, monthly payments can be very low thanks to secure low 30 year fix mortgage rates. First time buyers often find it cheaper to own their own home than to rent.
So, what is the catch to the HUD REO 100 Down Mortgage? The only catch is the property must be a HUD owned home. You can find the complete list of Florida HUD home for sale here. Basically, a HUD home is a home that was foreclosed on and had an FHA-insured mortgage. HUD pays off the losses of the lender and takes the home back to sell and recoup their losses. It is then offered for sale at market value, based on a recent AS-IS appraisal, meaning, and the market value in its current condition.
If you find a HUD home you like, a HUD registered realtor is needed to help set up a showing and to make a bid. HUD homes are listed for sale by management companies under contract by HUD. They are listed and sold through a bid process, and any real estate broker registered with HUD may submit an offer and contract to purchase on your behalf. Feel free to contact us if you need a Realtor recommendation in your Florida city, we would be happy to make the connection.
Who can purchase a HUD home? Pretty much any homebuyer that can qualify for a standard FHA mortgage. If you have the cash and credit to qualify for a loan you may buy a HUD Home. HUD Homes are initially offered to owner-occupant primary homes. Following the priority period for owner occupants, first time buyers, etc… it’s then the unsold properties are available to all buyers, including investors.
Now let’s discuss some of the wonderful benefits of the HUD $100 down home loan.
- The HUD 100 down mortgage is only for owner-occupied primary residences. The means buyers will not be competing with investors when making a bid.
- The program only requires $100 down payment.
- Up to 3% of buyers closing costs can be paid by HUD.
- The credit underwriting approval process on the HUD REO $100 Down Payment program is the same as a normal FHA purchase loan.
- If the HUD property needs some minor repairs, HUD will allow up to $5,000 of required repairs to be held in an escrow account. If the property is in need of more extensive repairs in excess of $5,000, you can still purchase it using an FHA 203K Renovation loan. Please contact us 7 days a week at ph: 800-871-2636
Other notes about the FHA HUD 100 Down program here in Florida:
- You need earnest money deposit when you make a bid. This earnest money (or good faith deposit) will be held in escrow. This money will be applied to any outstanding the costs the buyer may have. For HUD homes UNDER $50,000, the earnest money despot is $500. For HUD homes OVER $50,000, the earnest money is despot $1,000.
- All standard FHA qualifying requirements apply to the HUD REO $100 down program. Buyers will need a stable 2-year job history, 620 credit score, etc. All the basic FHA approval requirements can be found here. The HUD 100 program lender approval is quick and easy, the process generally takes about 15 min to complete.
Florida homebuyer that have HUD 100 pre-approval questions, or would like to start a HUD $100 down loan application, please contact us at www.FiveStarsMortgage.com or call ph: 800-871-2636. Need assistance? For fast service please submit the “Request Contact” form at the top right side. Mobile users can find the short Request Contact Form above.
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