Q & A on FHA $100 Down Program

By
Mortgage and Lending with Indy Mortgage

Buy A HUD Home With Only $100 Down!

All HUD owned homes for sale in Indiana can be purchase with a FHA loan with the down payment of only $100. HUD will pay as much as 3 percent of the sale price to offset closing costs, plus it will finance the transaction. Lists of HUD properties available under the program for sale in the state of Indiana can be found on the HUD page . Below are several items from the HUD FAQ regarding the program. For specifics, speak with real estate brokers that are approved by HUD to write offers on these properties. Frequently Asked Questions on FHA $100 Program

Q: Which properties are eligible for the $100 down payment incentive?

A: Any property listed as available for FHA financing (203B, 203B with repair escrow and 203K) will be eligible. However, the purchaser must be an owner occupant to qualify.

Q: Are properties listed under special programs available for the $100 down payment incentive?

A: Properties sold under the Good Neighbor Next Door Program currently have this provision if FHA financing is used and are also eligible for the $500 Selling Broker Bonus if FHA 203K Financing is used. Offers accepted under HUD’s Nationwide Sale to Disaster Evacuees (FEMA) and Non-profit Purchasers are not eligible.

Q: How long will this incentive program last?

A: HUD has not published the length of time these incentives will be offered.

Q: How much earnest money do I need? A: You need to have the earnest money of $1,000 for properties listed above $50,000 and $500 for properties listed for less than $50,000. Earnest money will be returned to you at closing as a credit on the Closing Statement.

Q: Will HUD pay for any closing Cost? A: Yes. HUD will pay for closing cost up to 3% of purchase price. Q: Who can buy HUD homes?

A: Any individual who can qualify for a mortgage or who can pay cash may buy HUD Home. Purchasers MUST have a pre-qualification letter from a lender or proof of cash funds in the amount of or greater than the HUD home purchase price. HUD divides buyers into two groups, owner-occupants and investors. Owner-occupants have the initial advantage over investors. Priority is given to purchasers who are owner-occupants for the first ten calendar days after a new listing is posted. Also, owner-occupants must live in the house as their primary residence for at least one year and may not purchase another HUD home for two years. HUD does not provide financing for the purchase of HUD Homes. It is up to the buyer to locate the financing through a bank or mortgage company. Before you bid on a property, be sure you do have secured financing. If you place a winning bid and you cannot obtain financing within the specified time, you may lose the earnest money deposit that you submitted with your offer.

So, if you have the money or can qualify for a loan, you can buy a Indiana Home for sale.

Posted by

Ken Blaudow

317-570-6300

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