Last updated: Oct 2026. By Alvaro Moreira, NMLS #148581. Moreira Team | MortgageRight. MortgageRight NMLS #2239; Atlanta Branch NMLS #1285851.
The short answer: what the HUD $100 Down program is
HUD owns homes across Georgia after taking them back from FHA-insured loans that went into foreclosure. When an eligible buyer purchases one of those homes with a new FHA-insured mortgage, HUD’s “$100 Down” sales incentive allows the minimum down payment to be just $100, instead of the usual 3.5% on a standard FHA purchase. Not every HUD home is offered with the incentive, and the details are set in the sales contract for each property, so we walk through the specific home with you before you bid.
If you are weighing a HUD home in Georgia, this page covers how the incentive works, what the $100 does and does not cover, and how the buying process runs here. For the national overview, see our HUD Home $100 Down program page.
What counts as a HUD home
A HUD home, also called a HUD-owned home or HUD REO property, is a one- to four-unit residential property that HUD acquired through foreclosure or other means on an FHA-insured mortgage. HUD then sells the home to recover the insurance claim it paid to the lender. HUD lists these properties on the HUD Home Store at hudhomestore.gov, where you can search Georgia by city, county or zip code.
How the $100 Down incentive works
According to HUD’s FHA handbook, the $100 Down sales incentive lets a borrower buy a HUD-owned home with FHA-insured financing and a minimum down payment of $100. A few things are worth knowing:
- It is tied to the property and the sales contract. HUD’s sales contract states whether the purchase is eligible for $100 Down. Your lender then confirms the property, the borrower and the program all fit.
- It works with the FHA purchase options HUD lists. The handbook allows $100 Down purchases to be processed as a standard Section 203(b) loan, a 203(b) loan with a repair escrow, or a Section 203(k) renovation loan.
- You still qualify for the mortgage. The usual FHA review of credit, income, debts and the property still applies. Learn more on our Georgia FHA loans page.
An illustration, not a quote or an offer of credit. On a $250,000 purchase, a 3.5% FHA down payment would be $8,750. With the $100 Down incentive on an eligible HUD home, the down payment would be $100, a difference of $8,650 in cash up front. Closing costs, prepaid items, inspections and other expenses are separate.
What the $100 does not cover
The $100 is the down payment only. Plan for these as well:
- Closing costs and prepaid items such as taxes and insurance. In Georgia, closings are typically handled by an attorney, so see our guide to the closing attorney in Georgia and our Georgia closing costs page. The good news? HUD may pay up to 3% of the home’s purchase price toward eligible financing and closing costs.
- FHA mortgage insurance, which is part of every FHA loan.
- Inspections and appraisal fees. HUD sells its homes as-is, so a home inspection is a smart step even when the lender does not require one.
- Repairs, if the home needs them. See the section below.
Who this fits in Georgia
- Buyers who plan to live in the home. HUD gives owner-occupants priority. On the HUD Home Store, eligible owner-occupants are people who have not bought a HUD home as an owner-occupant in the past two years, and they can bid during the Exclusive and Extended listing periods. Investors can bid only in the Extended period.
- First-time and repeat buyers. FHA financing is not limited to first-time buyers. If you are new to buying, our Georgia first-time home buyer programs page covers the other options.
- Buyers comfortable with a fixer-upper, or ready for a smaller project. HUD homes are sold as-is, and conditions can range from move-in ready to properties needing significant repairs. Some HUD homes that need minor repairs may still qualify for FHA financing through an FHA repair escrow, which allows eligible repair costs to be included in the mortgage and completed after closing.
How buying a HUD home works in Georgia
- Get pre-approved first. Know your budget and have your FHA approval in hand before you bid. See our Georgia mortgage pre-approval page.
- Search the HUD Home Store. Filter Georgia listings and note each property’s financing label (IN, IE or UI, explained below) and whether $100 Down is shown.
- Work with a HUD-registered broker. HUD requires all bids to be submitted through a HUD-registered selling broker or agent. You cannot bid yourself.
- Bid during the right listing period. HUD homes are offered through different listing periods that determine who is eligible to submit an offer. FHA-insurable properties generally begin with an Exclusive Listing Period, giving owner-occupant buyers an opportunity to purchase the home before investors are allowed to compete. After the Exclusive Listing Period ends, the property may enter an Extended Listing Period, when additional buyers, including investors, may submit offers.
- Your real estate agent or HUD-registered broker can confirm the property’s current listing period, bid deadline, and whether you are eligible to submit an offer.
- Order the inspection and appraisal, then close. Your lender completes the FHA review and your closing attorney handles the Georgia closing.
IN, IE and UI: what the labels mean
HUD marks each home with a financing label:
- IN (insurable): eligible for an FHA-insured loan in its current condition.
- IE (insurable with repair escrow): needs repairs estimated at no more than $10,000, and is eligible for an FHA loan if your lender sets up a repair escrow at closing.
- UI (uninsured): needs repairs estimated at more than $10,000 and is not eligible for a standard FHA-insured loan unless a Section 203(k) loan can be arranged.
For a deeper walk-through, read our guide to HUD homes in Georgia and the IN, IE and UI labels.
Can I finance repairs?
Often, yes. A home that needs work may be financed with an FHA 203(k) renovation loan, which rolls the purchase and eligible repairs into one mortgage, when the HUD listing allows it. Learn about our renovation loans. One note from HUD’s handbook: investor purchases of HUD homes are not eligible for 203(k) financing.
Frequently Asked Questions
What is the HUD $100 Down program?
It is a HUD sales incentive that lets an eligible buyer purchase a HUD-owned home with FHA-insured financing and a minimum down payment of $100, rather than the 3.5% required on a standard FHA purchase.
Do all HUD homes in Georgia qualify for $100 down?
No. Eligibility is set in HUD’s sales contract for each property and confirmed by your lender. Ask us to review a specific home before you bid.
Do I have to live in the home?
Yes. The HUD $100 Down Payment Program is designed for owner-occupant homebuyers, not investors. The property must be purchased as your primary residence, and you must meet FHA’s occupancy requirements.
HUD gives owner-occupants priority to bid on many HUD-owned homes during the property’s Exclusive Listing Period, before the property may become available to investors.
If you’re purchasing a HUD home as an investment property rather than as your primary residence, you would not be eligible for the $100 down payment incentive.
Do I have to be a first-time buyer?
No. FHA financing is open to first-time and repeat buyers. HUD’s owner-occupant rule asks that you have not bought a HUD home as an owner-occupant in the past two years.
Can I make an offer myself?
No. HUD requires all offers to be submitted through a HUD-registered broker or agent.
Does $100 down mean I only need $100 to buy?
No. The $100 is the down payment. Closing costs, prepaid items, inspections and any repairs are separate, though some closing costs can be negotiated or, in certain cases, paid by HUD under the sales contract.
Can I buy a HUD home that needs repairs?
Often, yes. Depending on the IN, IE or UI label, you may use a standard FHA loan, an FHA loan with a repair escrow, or a 203(k) renovation loan.
What credit score do I need?
It depends on FHA guidelines and lender requirements, which we review with you along with your income, debts and the property. Minimum credit score of 580. Terms are more attractive with higher scores.
Equal Housing Lender
All loans are subject to credit approval. Rates, terms, and program availability are subject to change without notice. This information is for educational purposes only and does not constitute a commitment to lend. Additional restrictions may apply.
