The FHA $100 Down program gives eligible homebuyers the opportunity to purchase certain HUD-owned homes with a minimum down payment of just $100.
Unlike a traditional FHA purchase, this special sales incentive is available only on eligible HUD-owned properties and must be used to purchase a primary residence.
For buyers who find the right HUD home, the program can significantly reduce the upfront down payment—and options may also be available when the property needs repairs or renovations.
The FHA $100 Down program is a special HUD sales incentive for eligible HUD-owned properties. Instead of the standard FHA minimum down payment, eligible buyers may purchase a qualifying HUD home with a minimum down payment of just $100.
The program uses FHA-insured financing and is available for eligible home purchases that will be used as the borrower's primary residence. The property must be a HUD-owned home eligible for the $100 Down incentive.
Because not every HUD home qualifies, we'll help you review the property and financing requirements before you make an offer.
The FHA $100 Down program is available only for eligible HUD-owned homes. A regular bank foreclosure, REO property, or other home listed for sale does not automatically qualify simply because it is a foreclosure.
Eligible HUD-owned properties may include:
Single-family homes: Eligible HUD-owned single-family properties may qualify.
2–4 unit properties: Certain HUD-owned multi-unit properties may be eligible when FHA occupancy requirements are met.
Manufactured homes: Eligible HUD-owned manufactured homes may qualify.
Condominiums and PUDs: Eligible HUD-owned condos and planned unit developments may also qualify.
The key is that the property must be a HUD-owned home eligible for the $100 Down incentive. We'll help you determine whether a property qualifies before you move forward.
Yes. For an eligible HUD home purchased through the FHA $100 Down program, the minimum required down payment is just $100.
That doesn't mean you'll only need $100 total to purchase the home. Buyers may still have closing costs, prepaid expenses, initial escrow deposits, inspections, and other costs associated with the transaction.
The $100 Down incentive specifically reduces the required down payment. Before you make an offer, we'll help you estimate the complete amount you may need for the purchase so there aren't surprises at closing.
For an eligible HUD-owned home purchased through the FHA $100 Down program, the minimum required down payment is $100. Buyers may still have closing costs, prepaid expenses, inspections, initial escrow deposits, and other costs associated with purchasing the home.
No. The program is available only for eligible HUD-owned properties. A bank-owned foreclosure or other REO property does not qualify simply because it is a foreclosure.
Yes. The FHA $100 Down program is for eligible purchases of a primary residence and is not available for investment properties or second homes.
Eligible properties may include HUD-owned 1–4 unit properties, manufactured homes, condominiums, and planned unit developments (PUDs). The individual property must meet applicable program and FHA requirements.
Potentially. FHA $100 Down purchases may be financed using FHA 203(b), FHA 203(b) with a Repair Escrow, or FHA 203(k), depending on the property and the repairs needed.
The FHA $100 Down program guidelines do not establish a separate minimum credit score, but borrowers must still meet applicable FHA underwriting and qualification requirements. Approval is not based on credit score alone.
Yes. FHA mortgage insurance is required with the FHA financing used for the $100 Down program.
Not every HUD-owned home is necessarily eligible for the incentive. Before you make an offer, we'll help you review the property and financing requirements to determine whether the FHA $100 Down program may be available.
The $100 down payment doesn't eliminate the normal FHA qualification process. Borrowers must still qualify for FHA financing based on their overall financial situation.
When reviewing your eligibility, we'll look at factors including:
Credit History: The program does not establish a separate minimum credit score, but borrowers must meet applicable FHA underwriting requirements.
Income and Employment: You'll need qualifying income and documentation that meets FHA requirements.
Monthly Debts: Your existing debts and proposed housing payment are considered as part of the qualification process.
Funds to Close: Although the required down payment may be just $100, you'll still need to account for applicable closing costs, prepaid expenses, escrow deposits, and other costs.
Occupancy: The home must be purchased as your primary residence.
Property Eligibility: The property must be an eligible HUD-owned home that qualifies for the $100 Down incentive.
We'll review both you and the property before you make an offer so you understand whether the FHA $100 Down program may be an option.
These materials are not from HUD or FHA and were not approved by HUD or a government agency.
