In select states, Tennessee being one of them, from now into October of 2012, home buyers can purchase a HUD-owned REO home for only $100 down. To qualify the Knoxville home buyer must be an owner-occupant, utilizing financing insured by the Federal Housing Administration (FHA). The home buyer must qualify through standard FHA underwriting guidelines, and the sale must be for the full amount of the current list price.
HUD’s $100 down payment incentive program is not limited to just your standard FHA loan. The incentive can be applied to the FHA 203k loan, which can be used to fund repairs and renovations on the Knoxville home. The 203k program is unique in that it allows home buyers to finance both the mortgage and additional funds needed for renovation needs, all with a single government-insured loan.
With an FHA 203k loan home buyers can find a Knoxville area property that needs some TLC, fix it up however they want to, and finance the whole thing for $100 down.
Yet another benefit is that HUD, in most cases, will also cover up to 3% of the closing costs.