A HUD home MAY be eligible for their $100 down incentive IF the Home Ownership Center for the area is currently offering it and IF the borrower makes a full price offer, otherwise standard down payments apply. Since I just did one of these deals (as a 203k/rehab loan even), I know they are still doing it currently.
As John stated, your area disqualifies you for that incentive (I didn't verify but since he's a public servant also, I'm assuming he's correct) but you may still strike gold with a HUD home. John or another agent local to where you're looking would help you make an offer on a HUD home of your choice and would be the ONLY agent involved in the transaction as they're interfacing directly with the asset management company on HUD's behalf.
IHDA (http://ihda.org) has numerous programs that may benefit you (though there's no guarantee that any one program has money at any given time, we can determine that at the appropriate time). Programs range from second mortgage (down payment assistance) grants of up to $6000, rehabilitation silent second mortgages (forgiveable) and monthly tax benefits, it just depends what makes the most sense for you and your budget and of course what you qualify for.
If you'd like to sit down and go over the finer details of the program and even the 203k rehab loan (which can be used in conjunction with the $100 down option to remodel/update or more drastic work if you choose) or IHDA program, contact me via my website or my profile. I'm available as early as Friday for appointments this week (or phone works as well).
I'm also a published writer on renovation financing.
My contact information is in my profile and on my website.
There are no options for zero down payment unless you qualify for VA financing. However there are several low down payment programs to consider. I recommend that you look into the Smart Move Loan - you may qualify for a home loan with as little as $500 down.
There are also conventional loans with as little as 3% down and FHA loans with as little as 3.5% down.
I would be happy to discuss your options should you need further assistance.
Senior Vice President Of Mortgage Lending
Regarding incentive programs, HUD is currently offering $ 100 down (versus 3.5%) with its REO Inventory in several states includinbg Illinois. This applies to FHA loans only.
I assume you are buying in Chicago. If you are not a Vet then the HUD owned homes would need to be in satisfactory condition for a HOMEPATH mortgage since they will not give you money for renovation. Not all mortgage officers know how to do. With these mortgages you need to put $100 down and HUD pays some of the closing costs.
If you can't find a HUD owned home you like, FHA only requires 3.5% down. For a $200,000 purchase that is $7,000. Your family can give you a gift for the entire downpayment. The seller can pay the closing costs.
If one of you is a veteran, 100% financing still exists. If not, we have a program with up to $6000 in Down Payment Assistance, and all you would need is $1000 or 1% down.
Give me a call.
Senior Mortgage Consultant
HUD provides a substantial incentive in the form of a fifty percent discount off the list price of eligible properties. The catch: HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement.
If you qualify for any FHA-insured mortgage program, your downpayment is only $100 and you may finance closing costs.
Firefighter/Emergency Medical Technicians
You may participate in the Good Neighbor Next Door program as a Firefighter/Emergency Medical Technician if you are employed full-time as a firefighter or emergency medical technician by a fire department or emergency medical services responder unit of the federal government, a state, unit of general local government, or an Indian tribal government serving the area where the home is located.
Debbie Bergthold-Smith Classic Real Estate