What is the FHA $100 Down Program?
The $100 Down Program allows the buyer of an FHA REO property to get a loan through FHA which exceeds the standard LTV limitations.
Is the $100 Down Program available on all FHA REO purchases?
The $100 Down Program is only available for certain areas and properties. You'll need to talk with the Asset Manager to determine if the property is eligible and have them add an addendum to the purchase contract if your borrower wants to take advantage of the program.
Can the UFMIP be financed into the loan amount?
It can, but the Total Loan Amount (excluding repairs) cannot exceed 100% of the Appraised Value minus the $100 down. Otherwise the UFMIP cannot be financed and the borrower must bring funds for it to be paid in at closing.
Can repairs be financed into the loan amount?
Yes, repairs can be financed up to 110% LTV.
HUD’s As-Is Policy and How to Fund Repairs
Whether a HUD home is listed as Insured (I), Insured with Escrow Repairs (IE) or Uninsured (UI), they all have one thing in common: they are sold as-is. This means that HUD doesn’t warrant the condition of its properties and will not pay for repairs or defects after a buyer’s contract has been executed. For this reason, HUD strongly recommends that the purchaser have a home inspection performed.
If your client should find that perfect home, but it needs repairs, you may suggest that he or she apply for FHA-backed financing: a 203(b) IE or a 203(k). The 203(b) IE allows repair costs of up to $10,000 and the 203(k) is for a property listed as uninsured, with repair costs over $10,000.
It may be tempting for some buyers to ‘get a start’ on the repairs or updates by making repairs or modifications before they close. Buyers should be made aware that HUD does NOT allow any repairs to be made prior to closing even if the lender requires these repairs. In the event that repairs are made the buyer and/or is selling broker will be responsible for ensuring that the property is placed back in its condition at the time of contract execution at the
For example, a buyer started gutting a kitchen prior to closing. The entire kitchen was removed and the contract didn’t close. Not only did the buyer lose thousands on renovation costs on a property that didn’t close, but the home no longer has a kitchen and doesn’t meet FHA conditions for lending and can only be sold as uninsurable.
If the buyer doesn’t comply with HUD’s requirement, one or all of the following can happen:
Contract cancellation
Fines and penalties associated with any damage caused by unauthorized repairs
The selling agent’s NAID may be suspended or they face termination if repairs or modifications are made to the property before the closing.
Sources
HUD
FHA.com
List of Kentucky HUD Homes for Sale. $100 Down FHA Loan Program
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 | 11 Quail Ridge Ct Owensboro, KY, 42303 Daviess County | 12/13/2021 | View Street Map it Email Info |  | ||||||
 | 1017 Log Lick Road Winchester, KY, 40391 Clark County | 12/13/2021 | View Street Map it Email Info | | ||||||
 | 99 Falls Br Belfry, KY, 41514 Pike County | 12/13/2021 | View Street Map it Email Info | | ||||||
 | 9655 Marshall Rd Ryland Hght, KY, 41015 Kenton County | 12/13/2021 | View Street Map it Email Info | | ||||||
 | 152 Warmwood Ln London, KY, 40741 Laurel County | 12/16/2021 | View Street Map it Email Info | | ||||||
 | 45 Grandview Ave Ft Thomas, KY, 41075 Campbell County | 12/13/2021 | View Street Map it Email Info | | ||||||
 | 2215 Sharon Rd Ashland, KY, 41101 Boyd County | 12/13/2021 | View Street Map it Email Info | | ||||||
 | 4094 Kimberly Dr Independence, KY, 41051 Kenton County | 12/13/2021 | View Street Map it Email Info | | ||||||
 | 2718 Cumberland Ave Ashland, KY, 41102 Boyd County | 12/13/2021 | View Street Map it Email Info | | ||||||
 | 12251 Us Highway 421 Tyner, KY, 40486 Jackson County | 12/14/2021 | View Street Map it Email Info | | ||||||
 | 2878 1st Street Petersburg, KY, 41080 Boone County | 12/13/2021 | View Street Map it Email Info | | ||||||
 | 692 Barker Rd California, KY, 41007 Pendleton County | 12/13/2021 | View Street Map it Email Info | | ||||||
_68633759.JPG) | 882 Whippoorwill Ro Paintsville, KY, 41240 Johnson County | 12/13/2021 | View Street Map it Email Info | | ||||||
 | 801 E Broad Street Central City, KY, 42330 Muhlenberg County | 12/13/2021 | View Street Map it Email Info | |
I can help you understand what mortgage is correct for you. Please contact me below and I will be happy to answer any questions.
Joel Lobb (NMLS#57916)
Senior Loan Officer
Senior Loan Officer
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
