St. Louis Mortgage Help

It's Back, The HUD Foreclosure $100 Down Payment Program

October 30th, 2011 3:10 PM by Bob Rutledge

It's back! After leaving Missouri, St. Louis, St. Charles and the surrounding area HUD has brought back the $100 Down Payment Program for a limited engagement! $100, that is all you'll need for a down payment to buy a foreclosure offered for sale by the government.HUD $100 Down Payment Incentive

Yes, the U.S. Department of Housing and Urban Development has brought back the $100 down payment plan. This could be a tremendous opportunity for some people, first time home buyers or perhaps those looking to downsize.

HUD Foreclosures? So, just what kind of home can you buy with $100 down? Some of these are modest homes, some are in poor condition, but many are great bargains, family homes in great neighborhoods. many are large homes perfect for a family. You can find a database of HUD owned homes HERE. There is quite a range of homes, complete with photos and descriptions.

Don't be concerned if you find homes that look to need some minor repairs or more, there is a mortgage loan program perfect for purchasing these HUD foreclosures that need work, it is the FHA 203k Renovation mortgage. If you would like to learn more about the FHA 203k mortgage and how it can work for you clickHERE.


  1. HUD foreclosed homes only! The FHA $100 down payment loan is for the purchase of HUD foreclosure homes.
  2. Have to use FHA financing, you cannot use conventional financing. Cash buyers are fine.
  3. Owner-Occupants only, no investors.
  4. You are required to have an earnest money investment of $1,000 for properties listed above $50,000 and $500 for properties less than $50,000. Your earnest money will be returned to you at closing as a credit on the Closing Statement. It is possible to get your earnest money back at closing!
  5. No appraisal unless utilizing the FHA 203k Renovation Mortgage
  6. Loan amount cannot exceed the Full List Price


This program allows you to negotiate a 3% seller concession of the agreed upon sales price to go toward your closing costs. Imagine possibly purchasing a new home with just $100 out of your pocket. It may be possible that the seller's concession amount will not cover all your closing costs, if that is the case ask your lender to cover the remaining closing costs and now you are purchasing a new home with just $100 down payment. Not all lender will or can offer to pay your closing costs to learn more about lender paid closing costs click HERE.

Ok, you can't get the seller, HUD, to provide you a seller concession, and your lender will not or cannot pay your closing costs. (You should have called me) The there are a couple other options available to you through the several down payment assistance programs in the area. Don't let the name fool you, the money these programs provide can go to closing costs too. IF you would like to learn more about these programs and what could be available to you click HERE.


The HUD $100 Down Payment Incentive Program has to be on the executed contract presented to HUD's M & M contractor. What this means is that you have to request this incentive when you send the signed contract in. This is why you must work with a well qualified real estate agent who has knowledge and experience working with HUD foreclosures. Do your homework with your real estate agent because you will only have one chance to get this part right!


As mentioned before if you are going to finance your HUD foreclosure purchase you must do so with an FHA mortgage, more than likely you will utilize the FHA 203b or the FHA 203k Renovation Mortgage. The FHA mortgage qualification guidelines are some of the easiest in the industry, FHA allows for higher debt to income ratios, credit qualification is more relaxed than conventional, this is the loan program for most first time home buyers.

If you would like to learn more about the FHA mortgage please click HERE or if you would like to learn about the FHA 203k Renovation Mortgage click HERE. Lastly, if you would like to get a free no obligation pre-approval visit my website at, here you can learn about me and about financing your next new home.

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Posted by Bob Rutledge on October 30th, 2011 3:10 PM


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New American Funding 12321 Olive Blvd, ste 150
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