Additionally, buyers may pay more than the home is worth if there is a bidding war for the home, says Bakke. If the bidding price exceeds the home's value, the buyer will have to come up with the difference between the sale price and HUD's appraised value on their own, he says. Bakke adds that the FHA arranges for an appraisal, so homebuyers don't need to get one on their own.
So if the [HUD] appraised value of the property is $100,000, but the winning bid is $115,000, then the buyer must bring the $100 plus the $15,000.
Web Reference: http://fhamortgageinfo.com/
Other than that, the loan is no different that any other FHA loan so if you are buying a home that is eligible for the $100 program, take it and run with it!
Bank of America Home Loans
Based on what I was told, you may do the $100 downpayment, but may have a higher interest rate. This is a good conversation to have with your loan officer to understand your options.
Glad to see you're buying in Michigan!!