Buy a HUD Home for $100 Down

Posted by Van Purser on Wednesday, May 12th, 2010 at 5:41pm.

While virtually all of the 100% financing programs have evaporated there still remains a great resource for securing a good value on your next home purchase and an unbelievable deal on financing.  Homes which have been foreclosed on and taken back by HUD under the FHA insurance guarantee program provide virtually 100% financing for qualified borrowers.  

These homes are made available through various designated asset management companies throughout the country.  These asset management companies then market homes for HUD through locally approved Brokers and an ONLINE bidding process.  We have recently become an APPROVED BROKER for HUD home resale’s. 

What Types of Homes are Available?
Homes available for purchase through HUD reflect the loan limits associated with FHA loans.  As loan limits have increased over the years so has the value of the properties financed with FHA loans.  Currently FHA loan limits are $346,250; which means that the homes for sale through HUD would not have exceeded $359,000 in sales price at the time they were financed.  Regardless of the area you want to live in there will generally be a HUD home of some sort there.

Who is Eligible to Buy a HUD HOME?
Anyone may buy a HUD home including investors and non-profit community revitalization organizations.  However HUD always gives first priority to buyers who are purchasing a home to live in for a minimum of one year.  Owner occupants will be required to sign a certification reflecting this and can not purchase another HUD home for two years.  Investors may purchase as many HUD homes as they like, but are not eligible for the $100 down payment financing.

How do I find HUD HOMES?
You may access all HUD homes available for sale in Georgia through our web site which provides access to the designated asset management company for the area.  You will need an approved HUD Broker to gain access to HUD properties.

How do I Make an Offer on a HUD HOME?
All available homes will appear on the web site.  All new HUD home listings appear on Wednesdays and are offered for the first 12 days only to owner occupants.  Price Reduced listings appear on Friday and owner occupants are given a five day priority to purchase during that time.  Properties available for Daily Bidding are available to all buyers.

Are There Incentives for Buying a HUD HOME?

YES.  Qualified buyers will only be required to put down $100 to purchase a HUD home.

YES.  If you use an FHA 203k loan you can also include all necessary repairs and improvements in the loan amount,

YES. You will receive a $1,000 sales allowance if you go under contract in the first 30 days that a property is on the market.  This is not available for investors.


What is the Process for Buying a HUD HOME?

  • Get pre-qualified for a loan.
  • Get a qualified and approved real estate Broker to represent you. HUD REQUIRES YOU HAVE A BROKER.  So get a good one.
  • Go and see the properties that meet your needs and review the Property Condition Report provided on line for every HUD property.
  • Review the sales contract and forms on line and discuss them with your Broker.
  • Have your Broker submit your offer on line.
  • Have your Broker execute and deliver the signed contract and earnest money to the designated asset management company within two days.
  • Conduct your inspection.
  • Prepare to close 45 days after contract on a regular FHA loan or 60 on a 203K loan. 

Van Purser is a licensed real estate broker in Georgia.  Since1981 he has successfully purchased and renovated over 400 homes.  His expertise is in the area of foreclosures, rehabs and fixer uppers.  Additionally, he has represented hundreds of clients over the years as a broker with Metro Brokers, RE/Max and now with his own firm.  He and his wife, Jeanne, who is also a broker, have been married since 1977.  For follow up on this article you may email Van at

Van Purser and his wife Jeanne are a licensed Real Estate Brokers in Georgia.  Since1984 they successfully purchased and renovated over 400 homes.  Their expertise is in representing Buyers or Sellers as an advocate; which means always ensuring their best interest.  Additionally, they represented hundreds of clients over the years as an Associate Broker with Metro Brokers, RE/Max and now with his own firm.  He and his wife, Jeanne, have been married since 1977.   Van or Jeanne can be reached at 770-623-3313, or by email at or

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