HUD's $100 Down Payment Program Explained

What the program actually reduces

The $100 Down program only changes the down payment requirement, not your loan qualification, your closing costs, or your monthly payment obligations. You're still financing the full purchase price through an FHA loan and still need to qualify with your lender based on income, credit, and debt-to-income ratio the normal way — this program removes a cash barrier at closing, not the underwriting standards.

Which properties are eligible

Not every HUD listing qualifies. HUD designates eligible properties directly on the HUD Home Store listing, and eligibility is generally tied to specific program criteria HUD sets and can adjust; your broker can filter or check listings for $100 Down eligibility so you're not assuming a property qualifies when it doesn't.

Who can use it

The program is limited to owner-occupant buyers financing their purchase with an FHA loan — it isn't available to investors or to buyers using conventional, VA, or other loan types. It also only applies during the standard owner-occupant purchase process, so the usual exclusive-period and eligibility rules covered in our owner-occupant rules guide still apply.

What you still have to pay

Closing costs, prepaid items (like the first year of insurance and property tax escrow), and the FHA upfront mortgage insurance premium are not covered by the $100 Down program — those are separate from the down payment and still apply. Ask your broker about combining this program with HUD's separate closing-cost credit, covered in our closing cost credit guide, since stacking the two can meaningfully lower your total cash-to-close.

Why this program exists

HUD created the $100 Down program to help move eligible inventory to owner-occupants who might otherwise be priced out by upfront cash requirements, particularly on lower-priced homes. It's a narrow, property-specific incentive rather than a general first-time-buyer benefit, so confirming eligibility on the specific case number you're interested in is the first step, not an assumption to make going in.