Special offer

Can you really buy a home for as little as $100 Down ?

By
Real Estate Agent with Renaissance Realty Group of Keller Williams Atlanta Partners

Yep - HUD offers a $100 down home purchase program . 


Here is a quick break down of the advantages of their $100 down program:


The allowance of only $100 for the down payment is a sales incentive placed on certain HUD REO listings

If the buyer bids more than the list price, in an effort to secure the purchase, the amount bid above the list price must be paid in addition to the $100

Example: List price is $100,000 and buyer bids $101,500, the buyer would have $1,600 for their down payment

 

The buyer must not bid less than the list price to obtain this incentive

 

If this incentive is available, the sales contract package will contain information about the availability

 

The buyer must request the $100 down payment at the time the sales contract and bid are submitted

 

The $100 down incentive, if available, can be added to the sales contract at any time during the process by the M&M contractor

 

The calculation for the mortgage is:

sales price - $100 = basis (add MIP for final loan amount)

If there is a repair escrow in addition to the incentive the calculation is:

sales price - $100 + repair escrow = basis (add MIP for final loan amount)

If the buyer is going to use 203K renovation loan the calculation is:sales price + rehab costs - $100 = basis (add MIP for final loan amount)

 

     Please let me know if you have any questions!  Thanks, and I look forward to working with you!

 

Posted by

If you or someone you know is thinking of buying or selling a home have them give me a call .. we will get it done ...right 

Eric Reid 

Associate Broker

Keller Williams Atlatna Partners
Team Leader 
Renaissance Realty Group

Comments (2)

Michael Kitsch
Coldwell Banker - Katy, TX

Thanks for the info.  Good week to ya!

May 04, 2011 04:10 AM
Rodney Mason, VP of Mtg Lending
Guaranteed Rate NMLS# 2611 - Atlanta, GA
AL,AR,AZ,CA,CO,FL,GA,IN,MI,MS,NC,SC,TN,TX,VA,WA

Combing the HUD $100 Down with the FHA 203K makes for a great financing option for buyers.

May 04, 2011 03:22 PM