Buy a HUD home and your down payment will be $100.00.

With many homes for sale in the Middle Tennessee Area, HUD has developed a program for homes in Tennessee. HUD is currently offering a $100 down payment program for homes in the area. To take advantage of this special program participants must qualify for FHA financing and must agree to live in the property for at least one year following the purchase of the home. That means if you qualify for an FHA loan you will be able to take advantage for this special down payment incentive.

A HUD home is residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. After the foreclosure HUD then becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. HUD homes are typically in good condition and these types of homes can be found through-out the Middle Tennessee area.

Here are a few tips to use when purchasing a HUD home:

1. Be ready to act fast.

HUD homes typically sell within 10 days. When you have identified a home that you like, be prepared to make an offer on the home immediately.

2. Get pre-approved.

HUD requires that all offers are submitted with a pre-approval letter from the lender of your choice before submitting an offer.

3. Have your earnest money ready.

All HUD homes in Tennessee require $1,000 earnest money. Earnest money is a deposit that is placed on the home until closing. The earnest money will be refunded to you at closing or used toward your closing cost.

4. Never pay for a list of HUD or foreclosed homes.

I have seen television and print advertisements for the sale of lists for these types of homes. No matter how nominal the amount; never purchase a lists for these types of homes. HUD homes are regulated by the federal government and are public record. Contact a Realtor® that can help you locate a free list of these homes.

5. Get a home inspection.

Although HUD provides a property condition report, have a property inspector complete a thorough home inspection.

6. Ask for closing cost assistance.

HUD will typically pay up to 3% of closing cost for HUD homes.

7. Use a HUD certified real estate broker.

Not all real estate brokers have been certified to sell HUD homes. Make sure you use an agent that is familiar with the process. If you think you want to buy a HUD home, you need to contact a real estate sales professional in your area who is authorized to sell HUD homes.

Denise J. Beard is a Real Estate Broker with Crye-Leike, Realtors in Nashville, serving the Middle Tennessee area. She is also a certified HUD home agent. She can be reached at 615-373-3456 or at www.denisejbeard.com. If you have a real estate question or a topic that you would liked covered, please e-mail Denise at denise@denisejbeard.com.