Indianapolis HUD Homes For Sale – The HUD $100 Down Payment Incentive!

Things have changed recently in the housing market.  In the past you could get no money down payment mortgages to buy a home.  Now the lowest down payment loan is a FHA loan with a 3.5{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} down payment.  But there is an exception on Indianapolis HUD homes for sale.  HUD currently has an incentive where you only need a $100 down payment!

Imagine buying an HUD home in Central Indiana with just a $100 bill for a down payment.  But with all government programs there are some “catches” or requirements. 

First, if you don’t know what HUD homes for sale in Indianapolis area are, you can go to my website for more information.  The link is listed below.

The requirements to qualify for the HUD $100 Down Payment Incentive are:

1.  You have to use FHA financing.

$100 Down payment incentive is only for purchasers of HUD homes for sale using FHA financing.  The normal down payment for a FHA loan is 3.5{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}.

2.  You have to be an “owner-occupant”.

“Owner-Occupant” is HUD’s word for homeowner.  You are buying the property to live in not as an investment.  This incentive is not for investors!

3.  The $100 Down Payment Incentive applies to the appraised valve of the property.

The purchase price of the HUD home must equal or less than the appraised valve of the property.  When HUD puts a HUD foreclosure on the market it will have an “appraised as-is” market valve.  If your accepted bid price is more than the appraised value, you can obtain a new FHA appraisal to support the higher mortgage amount or you can pay cash in the amount of the difference between the appraisal and the price less $100.

Ok, that may be a little confusing.  An example would be if a HUD home is listed at an appraised valve of $100,000 and you get an accepted bid of $110,000.  You can get a new FHA appraisal supporting the $110,000 price OR you could bring $9,900 ($10,000-$100) down payment to closing.  That would defeat the purpose of the $100 Down Payment Incentive.

4.  The $100 Down Payment Incentive has to be on the executed contract.

The $100 Down Payment Incentive has to be on the executed contract presented to the closing agent by the M & M Contractor.  What this means that you have to request this incentive when you sent the signed contract to HUD’s M & M Contractor.  In the Indiana the M & M Contractor is HMBI in Chicago.

Now is the time to take advantage of all of the Indianapolis HUD Homes for Sale and The HUD $100 Down Payment Incentive!