Buy a HUD home - $100 down payment

By
Real Estate Agent with Bob Leigh & Assoc., LLC

In Mississippi, you can purchase a HUD home with only a $100 down payment. Equal Housing Opportunity

First, here is a brief (and very simplified) introduction to HUD homes.  When someone purchases a home using an FHA loan, the loan is insured by FHA (which is a part of HUD).  If that borrower defaults on the FHA loan, HUD becomes the new owner by foreclosure.  HUD does not wish to be a property owner, so they place these homes back on the market for sale.

 In Mississippi, HUD and FHA have a program where you can purchase a HUD home using an FHA mortgage for only $100 down payment (instead of the ususal 3%).  You have to qualify for the FHA loan, just like you would for any other (non-HUD owned) home. 

This program is only available for owner-occupants and the earnest money requirements must still be met.  This $100 down payment incentive not only applies to "FHA ready" homes but also to FHA repair loans.

UPDATE:  This program could be discontinued at any time.  It has already been discontinued in some states.  Also, this program in no way changes the Earnest Money Deposit requirements.  Currently, the deposit is $500 for homes under $50,000 and $1,000 for homes $50,000 and over.

For more information about HUD homes in Mississippi, visit MS HOME IFNO or HOOKS VAN HOLM
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About the author:
 
Pam Simpson is an Assoc. Broker with Bob Leigh & Associates, LLC in Northwest MS. 

FOR BUYERS:  Buying a Foreclosure, Finding a Home, Loan Info, Tax Credit, Interest Rates

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 Disclaimer:  All information provided by this author may be  based on information collected from several sources and is believed accurate but not guaranteed.

         

 

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Rainmaker
113,519
Florida Private Golf Communities
Golf Life Properties, LLC - Palm Beach Gardens, FL
Finding Home Never Felt Better!

Good information.  I also posted about HUD's 50% off discount available to Teachers/Officers/Firefighters & EMT workers.

Jul 24, 2008 05:03 AM #1
Rainmaker
116,152
Pam Simpson
Bob Leigh & Assoc., LLC - Senatobia, MS
GRI, Broker-Assoc.

Nishika - Thanks for the link.  I decided to learn all I could about HUD homes when I first got my license.  I did see it as a "niche".  I don't think that 50% discount is available in my area.  From my understanding, my market is too suburban/rural to qualify for the Teachers/Officers/Firefighters & EMT program.

Jul 24, 2008 05:25 AM #2
Rainmaker
113,519
Florida Private Golf Communities
Golf Life Properties, LLC - Palm Beach Gardens, FL
Finding Home Never Felt Better!

Pam-I'm sorry I hadn't seen your response until now.  Typically the Teacher/Officer program is only available in certain zones within a census track.  Whichever asset manager website you use to search for available properties would have a separate page for those with the discount, if any.  It's good to know you didn't shy away from HUD homes even when you first got your license.

Aug 31, 2008 09:44 AM #3
Rainmaker
116,152
Pam Simpson
Bob Leigh & Assoc., LLC - Senatobia, MS
GRI, Broker-Assoc.

Mark - interesting that it is a problem in your area.  I have not had any major problems with them here (yet).  A good number of our lenders are very familiar with how they work and the M&M company has a local attorney that closes them.  The attorney's office is a wealth of information if a problem does comes up.

Sep 01, 2008 01:58 AM #5
Anonymous
Mary Wright

I would like to sing up for  a fha loan and i was wondering how do i do that

Mar 18, 2009 01:10 PM #7
Rainmaker
116,152
Pam Simpson
Bob Leigh & Assoc., LLC - Senatobia, MS
GRI, Broker-Assoc.

Mary-If you are in Northwest MS, please send me an email (mshomeinfo@yahoo.com) so that I can reply to you with specific information.  If you are in an area outside of the Desoto, Tate, Marshall county area, you can apply for an FHA loan at any lender who offers such loans. 

Mar 19, 2009 02:28 AM #8
Anonymous
Jodi

I was reading what everyone wrote and was wondering if you guys might be able to help me out.  I am a first time buyer with limited income.  I am on disabilty and I only make 432 a month.  I was wondering if you know of any of the agencies that might be able to take my credit to pre-approve me for a HUD home for 100 down. Please help I need to get out of the place where I'm staying ASAP!

Apr 07, 2009 06:31 AM #9
Anonymous
DAVID MIRLES

Me and my wife Iris are on sec 8 . We where told that we can use that to buy us a home . We live in ohio right now and we are all a lone here we lost our family in a car accident . We where hit by an eighteen wheeler. We are both disabled and have no family here so we want to move back to RI. We lost our 6yr old daughter ,Stacey and our nephew7yrs, his sister 19 months old and my wifes parenrs . All in that accident. now we need to be closer to the family we have left. so any thing you can  help us with will be greatly appreaciated                  

                                                                                              GODBLESS

                                                                                           DAVID AND IRIS MIRLES-

Nov 01, 2010 05:33 PM #10
Anonymous
DAVID MIRLES

Me and my wife Iris are on sec 8 . We where told that we can use that to buy us a home . We live in ohio right now and we are all a lone here we lost our family in a car accident . We where hit by an eighteen wheeler. We are both disabled and have no family here so we want to move back to RI. We lost our 6yr old daughter ,Stacey and our nephew7yrs, his sister 19 months old and my wifes parenrs . All in that accident. now we need to be closer to the family we have left. so any thing you can  help us with will be greatly appreaciated                  

                                                                                              GODBLESS

                                                                                           DAVID AND IRIS MIRLES-

Nov 01, 2010 05:33 PM #11
Rainmaker
116,152
Pam Simpson
Bob Leigh & Assoc., LLC - Senatobia, MS
GRI, Broker-Assoc.

Mr. Mirles,

First I want to say I am so sorry for your loss.  I am not a HUD employee nor do I have a connection to HUD.  I am a Realtor in Mississippi that sells HUD homes as a Buyers Agent.

I have never had a client use a Section 8 voucher to purchase a home.  I suggest that you contact a Realtor that is LOCAL to the area you intned to move to for help.  I know that it is possible to purchase a home using Section 8 but it is limited to areas where the local HUD office allows it.

God Bless and Good Luck!

Nov 03, 2010 04:43 AM #12
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