What if you could buy a home in Washington DC with just $100 down? It sounds too good to be true, but HUD's $100 down program is a real option for owner-occupants who want to purchase a HUD-owned home using FHA financing. Right now, there is exactly one HUD home for sale in Washington DC — a 1 bed, 1 bath property on Naylor Road SE listed at $66,600 — and if you play your cards right, you could get in the door for a fraction of the usual down payment. But there are rules, and there is one big trap that catches a lot of buyers off guard. Keep reading so you don't lose the deal.
What Is a HUD Home?
A HUD home is a property that was previously purchased with an FHA loan. When the homeowner went through foreclosure, the Department of Housing and Urban Development (HUD) took ownership of the home. HUD then lists these homes for sale on its official website, hudhomestore.gov, to recoup the loss. Because HUD wants to encourage homeownership, it gives owner-occupants — people who plan to actually live in the home — a big advantage over investors. One of the best perks is the $100 down payment option.
The $100 Down Program: How It Works
Instead of the standard 3.5% FHA down payment, qualified owner-occupants can put down just $100 on a HUD home. Here is what you need to know to make it happen:
- You must be an owner-occupant. That means you have to live in the home for at least one year. Investors are not eligible.
- You must use FHA financing. Specifically, a 203(b) loan for a move-in-ready home, or a 203(k) loan if the home needs repairs.
- The $100 down must be written into your sales contract. It does not happen automatically — your agent has to include it the right way when submitting your offer.
- You cannot have purchased another HUD home in the past 24 months.
- You must bid through a HUD-registered broker. Not every real estate agent can submit HUD offers, so make sure yours is registered.
The Trap That Costs Buyers This Deal
Here is the big warning that too many people miss: if the HUD home needs a rehab loan (a 203(k) loan), you lose your down payment assistance. Down payment assistance programs generally do not work alongside 203(k) rehab loans. So if you were counting on layering DC or Maryland down payment assistance on top of the $100 HUD down program, and the home requires repairs that force you into a 203(k), that combination falls apart. Always find out whether the home qualifies for a standard 203(b) loan before you get too excited about stacking programs together.
$100 Down Is NOT $100 Out of Pocket
This is probably the most important thing to understand before you move forward. The $100 down refers only to your down payment — it does not cover everything you will owe at closing. You are still responsible for:
- Closing costs — unless HUD agrees to cover them, which you would need to negotiate
- The appraisal fee
- The home inspection fee
- Upfront mortgage insurance
These costs add up, so go in with your eyes open. Talk to a lender early so you know your full out-of-pocket picture before you fall in love with a listing.
The One HUD Home Listed in DC Right Now
As of this video, there is exactly one HUD home for sale in Washington DC: a 1 bedroom, 1 bathroom home on Naylor Road SE, listed at $66,600. HUD inventory changes daily, so what is available today may be gone tomorrow — and new listings can pop up at any time. Always check hudhomestore.gov for the most current listings. Your HUD-registered agent can also help you set up alerts so you are not constantly refreshing the page yourself.
What About Maryland HUD Listings?
The video also covers real Maryland HUD listings for buyers who are open to the DC metro area as a whole. If DC pickings are slim (which, with one listing, they clearly are right now), Maryland may have more options. The same $100 down rules apply to HUD homes in Maryland as long as you meet all the owner-occupant and financing requirements. A HUD-registered broker who works both DC and Maryland can show you listings on both sides of the line.
How to Get Started
The path to buying a HUD home with $100 down starts with two things: a HUD-registered broker and a lender who is comfortable with FHA financing. Your broker handles the offer submission on hudhomestore.gov — which is not like a regular MLS offer — and your lender confirms which loan type the home qualifies for. Getting those two people aligned early saves you a lot of headaches later.
Frequently Asked Questions
Can investors use the $100 down HUD program?
No. The $100 down option is only available to owner-occupants — people who will live in the home as their primary residence for at least one year. Investors are not eligible.
Can I use down payment assistance on top of the $100 down HUD program?
It depends on the type of FHA loan the home requires. If the home qualifies for a standard 203(b) loan, you may be able to layer in assistance. However, if the home needs a rehab loan (203(k)), down payment assistance programs typically will not work alongside it — and you could lose the deal.
Will HUD pay my closing costs?
HUD may agree to cover closing costs, but it is not automatic. You would need to negotiate that as part of your offer. You should plan to have funds available for closing costs, the appraisal, inspection, and upfront mortgage insurance regardless.
Do I need a special agent to buy a HUD home?
Yes. HUD offers must be submitted through a HUD-registered broker. Not every real estate agent is registered, so make sure the person helping you has that qualification before you start the process.
Ready to See What You Qualify For?
HUD homes with $100 down are a real opportunity for first-time buyers in the DC area — but the details matter, the inventory moves fast, and the wrong financing choice can cost you the whole deal. If you want to know which programs you are eligible for right now, take two minutes and see which DC programs you may qualify for. A licensed agent who knows both the HUD process and local assistance programs can help you put together the strongest possible offer.
This article is for education only and is not financial or legal advice. Program details change; verify with the program administrator. Not affiliated with DC DHCD, DCHFA, or any government agency.