Frequently Asked Questions

This is a Special HUD property Purchase loan program financed as an FHA loan. It offers the ability to own a home with a down payment of $100.00. Certain features must be present, to qualify for this program. They include, but are not limited to the following:

• Property must be owner occupied and loan can only be for the following types of structures: 1-4 Unit property, PUDs (Planned unit developments), Modular homes
• The maximum loan amount varies by county.
• The property must be chosen from the HUD list of foreclosed properties for sale.
• All loans require the Borrowers to make a $100 down payment. The standard FHA policy requiring that the Borrower(s) make a 3.5% down payment is not required for the FHA $100.00 HUD Repo program.
• Hud will assist with closing costs and even reasonable repairs, if so requested on the Purchase contract.
• CREDIT ALERT INTERACTIVE VOICE RESPONSE SYSTEM (CAIVR)
• All Borrower(s) must be screened using CAIVRS. FHA will not insure a loan if the Borrower(s) is currently delinquent on ANY unpaid federal debt, or has had a claim paid with in the previous three (3) years.
• Also all of your bills must current and paid on-time for the last 12 months; no bankruptcies for the last 24 months and no foreclosures in the last 36 months.

• These materials are not from HUD or FHA and were not approved by HUD or a government agency.
• Homeowners, 62 and older who have paid off their mortgages or have only small mortgage balances remaining are eligible to participate in HUD’s reverse mortgage program. The program allows homeowners to borrow against the equity in their homes.
• Mortgagees are required to perform a thorough financial assessment of prospective borrowers.
• Homeowners can receive payments in a lump sum, on a monthly basis (for a fixed term or for as long as they live in the home), or on an occasional basis as a line of credit. Homeowners whose circumstances change can restructure their payment options.
• Unlike ordinary home equity loans, a HUD reverse mortgage does not require repayment as long as the borrower lives in the home. Lenders recover their principal, plus interest, when the home is sold. The remaining value of the home goes to the homeowner or to his or her survivors. The HECM reverse mortgage is a loan that must be repaid when the borrower dies, sells the home, moves out of the house, or defaults on other obligations such as insurance or taxes.
• These materials are not from HUD or FHA and were not approved by HUD or a government agency.

• FHA “streamline” refers only to the amount of documentation and underwriting that needs to be performed by the lender, and does not mean that there are no costs involved in the transaction. The basic requirements of a streamline refinance are:
• The mortgage to be refinanced must already be FHA insured
• The mortgage to be refinanced should be current (not delinquent).
• The refinance is to result in a lowering of the borrower’s monthly principal and interest payments
• No cash may be taken out on mortgages refinanced using the streamline refinance process
• Lenders may offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal.
• Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed the original loan amount. Investment properties may only be refinanced without an appraisal.

• The FHA Secure loan program is designed to help home owners who took out sub-prime adjustable rate mortgages and other borrowers facing foreclosure due to an adjustable rate mortgage. Many home owners are finding the new increased mortgage payments difficult or impossible to pay every month and many home owners are now sliding towards foreclosure. The FHA secure program would allow these home owners to refinance their adjustable rate mortgage into a more stable fixed rate mortgage and include up to 6 months past due mortgage payments into the loan balance. However the home owners must prove that the payment increase from the adjustable rate mortgage was the cause of their delinquent mortgage payments and not lack of financial responsibility. FHA will also permit back taxes and insurance to be included into the new loan amount. No cash out refinances are allowed with FHA secure.
• This is limited time program.