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The Scoop on HUD's $100 Down Payment Program for HUD-Owned REO Properties


It is no secret that lenders cannot usually wait to get REOs (shorthand for “Real Estate Owned”) off of their hands; this is the reason that this type of property is usually listed at a price below market value. The same holds true for HUD when it comes to its REOs.

Consequently, HUD offers an FHA program that only requires a $100 down payment on HUD-owned properties. To top it off, HUD will cover up to 3% of the buyer’s closing costs. Of course, in order to take advantage of this program, the buyer must use FHA-insured financing and must meet standard FHA eligibility requirements (including being an owner-occupant). The bad news: the program is not available everywhere. The good news: it is available in 27 states, plus the Caribbean. So if you are in the following states, you are good to go:

  • Arkansas
  • Colorado
  • Iowa
  • Kansas
  • Louisiana
  • Missouri
  • Minnesota
  • Montana
  • Nebraska
  • New Mexico
  • North Dakota
  • Oklahoma
  • South Dakota
  • Texas
  • Wisconsin
  • Wyoming
  • Utah
  • Alabama
  • Florida
  • Georgia
  • Kentucky
  • Illinois
  • Indiana
  • Mississippi
  • North Carolina
  • South Carolina
  • Tennessee
  • The Caribbean

If you are reading aloud, now is the time that you take a breath. That was quite the list.