FHA VA Blog

So you may have heard that there is an ability to put down $100 and buy a HUD home. However, there are a few details , one in particular to pay attention to. Whenever you take out an FHA mortgage you finance a 1% upfront mortgage insurance to your loan. On a traditional FHA loan, that is added in after your down payment, so you effectively finance 97.5% of the house.

However, on the $100 with HUD you are only capable of financing this in when the addition of this 1% upfront mortgage insurance to your total loan amount will not cause your loan to exceed 100% of the value of the house. I would possibly be prepared to bring this to closing, or work with your lender on an alternative solution. A smart lender will propose an alternative solution in case you aren't financially prepared to deal with this extra cost.

To find a HUD home click here: and then you can apply for the loan program to make sure you are working with a seasoned HUD home lender through our online application and we'll get in touch with you from there.

~Ray