HUD $100 Down Homes: What It Really Takes to Buy One
HUD’s $100 down incentive is real: on certain government-owned homes, an owner-occupant buyer using an FHA loan can put down $100 instead of FHA’s usual 3.5%. Three things about it surprise almost everyone who calls us, so they come first.
Read this first
1. It costs more than $100. The $100 is the down payment and nothing else. You still need:
- An earnest money deposit with your bid.
- Money for the inspection and other costs before closing.
- Closing costs, plus prepaid property taxes and homeowners insurance. You can ask HUD to pay part of your closing costs in your bid, but HUD compares bids by what it keeps, so asking for help makes your offer weaker.
Gift money from family can help, under FHA’s gift rules. But plan on needing real savings, not $100.
2. Only certain houses qualify. The incentive applies only to homes HUD owns after an FHA foreclosure, listed on hudhomestore.gov, and only when the listing is marked eligible for $100 down. When we checked on October 28, 2026, there were 34 HUD homes listed in all of Michigan, and not every HUD home carries the incentive. HUD sells them as-is, and many need work.
3. You still have to qualify for the payment. This is a regular FHA loan with full underwriting. You need a credit score of at least 580 for this program, steady income you can document, and a monthly payment that fits your income alongside your other debts. With $100 down you are borrowing almost the whole price, so your payment is higher than it would be with a larger down payment, and it includes FHA mortgage insurance, property taxes and homeowners insurance.
If those three still work for you, this is a good program. Here is how it works.
Who can use it
- You must live in the home as your primary residence for at least a year. Investors cannot use the incentive.
- It is for buying only. You cannot use it to refinance.
- You must use FHA financing. The loan can be a standard FHA loan, an FHA loan with a repair escrow, or an FHA 203(k) renovation loan that rolls repair costs into the mortgage.
- The $100 down incentive has to be written into your HUD sales contract, so your agent must request it when submitting the bid.
How buying a HUD home works
- Get pre-approved first. Know your price range and your cash to close before you fall for a house. We check credit, income and savings up front so there are no surprises after your bid is accepted.
- Find a real estate agent registered with HUD. Only a HUD-registered agent can submit a bid for you.
- Search the listings on hudhomestore.gov. Use the “FHA $100 Down Eligible” filter and check each listing’s financing code, which tells you whether the home can be financed with FHA as it stands, with a repair escrow, or only with a 203(k) renovation loan.
- See the home and get it inspected. HUD homes are sold as-is. The house has to meet FHA’s minimum property requirements for the loan to close, or the repairs have to be financed.
- Bid. Owner-occupants get the first chance to bid when a home is listed, before investors can. HUD reviews bids on its own schedule and usually favors the one that nets it the most.
- Close. If your bid is accepted, the sales contract sets the closing date, and we finish the loan with you, your agent and HUD’s closing agent.
Who this program fits
It fits a buyer with steady, documented income, decent credit and enough savings for closing costs, who finds an eligible HUD home in the area they want and is ready for some repairs. It does not fit someone hoping to buy a house with $100 total, someone who needs to buy in a specific neighborhood on a deadline, or an investor.
If the $100 down home does not pan out, a regular FHA loan needs 3.5% down on any home that meets FHA’s standards, and first-time buyers can often pair it with down payment assistance.
Found a HUD home? Check it with us before you bid
Send the HUD case number or the address from the listing on hudhomestore.gov. We will check your credit, your income and the cash you need to close, and tell you plainly whether it works. No home picked out yet? Start with step 1 above and get pre-approved first.