Call it the U.S. Department of $100 Down Housing.

The U.S. Department of Housing and Urban Development (HUD) is offering its foreclosed homes for a mere $100 down from now until October 2012.

HUD like other federal agencies, are anxious to unload properties they hold, because they can be a financial drain.

Of course you'll have to qualify for a mortgage, you may have to pays some closing costs, the deal isn't available everywhere and the condition of the homes is strictly "as-is."

If you can handle those qualifiers, here's the deal:

• You can only buy HUD homes. Go to the HUD Homes For Sale web page.

• You must use a HUD-registered real estate broker or agent.

• You must qualify for and use Federal Housing Administration (FHA) financing.

• You must plan to be an "owner-occupant," buying the property to live in and not as an investment.

• The home's purchase price must be no more than the appraised value of the property. If you bid a higher price you can pay the difference in cash, minus $100.

• The $100 down incentive must be on the executed contract. That means you have to specifically request the incentive. Your real estate agent should be aware of this provision.

• In some cases, HUD will also cover up to 3 percent of the closing costs.

• The $100 down payment program is eligible for the FHA 203(k) loans. The loans allow borrowers to use a portion of their purchase loan to repair and renovate run-down homes.

That's a good thing because HUD homes are sold in an "as-is" condition -- what you see is pretty much what you get. You could find a diamond in the rough or fool's gold. HUD homes often include a property condition report, but that is not a warranty.

The property report can resemble a home inspection report, but HUD home buyers are always encouraged to get a home inspection to determine just what "as is" is.

The deal is offered in states in two HUD regions:

Denver Homeownership Center

Arkansas
Colorado
Iowa
Kansas
Louisiana
Missouri
Minnesota
Montana
Nebraska
New Mexico
North Dakota
Oklahoma
South Dakota
Texas
Wisconsin
Wyoming
Utah

Atlanta Homeownership Center

Alabama
Florida
Georgia
Kentucky
Illinois
Indiana
Mississippi
North Carolina
South Carolina
Tennessee

Published: November 10, 2011

Use of this article without permission is a violation of federal copyright laws.

A journalist for 35-years, Broderick Perkins parlayed an old-school daily newspaper career into a digital news service offering editorial content and consulting services. Perkins' San Jose, CA-based DeadlineNews Group includes the flagship news site, DeadlineNews.Com, offering real estate, personal finance and consumer journalism, and a backshop, the Deadline Newsroom.