How to Buy a HUD Home in Kentucky for Just $100 Down: Complete 2025 Guide
Buying a home in Kentucky just became more affordable than you ever imagined. Through the FHA $100 Down Payment Program, qualified buyers can purchase HUD-owned homes with a down payment of just $100—a fraction of the typical 3.5% FHA requirement. This comprehensive guide walks you through everything you need to know about buying a HUD home in Kentucky, from understanding what HUD homes are to closing on your dream property.
What Are HUD Homes and Why Are They So Affordable?
HUD homes are residential properties that were previously financed with FHA loans but went through foreclosure. When an FHA-insured loan defaults, the U.S. Department of Housing and Urban Development (HUD) acquires the property and sells it to the public through an asset management contractor. These homes are priced competitively to encourage quick sales and community revitalization.
Kentucky offers a robust inventory of HUD homes across the state — from Louisville and Lexington to Bowling Green and Elizabethtown. This diversity provides affordable opportunities statewide.
Understanding the FHA $100 Down Payment Program
The FHA $100 Down Payment Program allows eligible buyers to purchase HUD-owned homes with only $100 down using FHA financing. Compared to the usual 3.5% down requirement, this offers significant savings — often thousands of dollars. For instance, on a $150,000 home, this program reduces your down payment from $5,250 to just $100.
- Minimum 580 credit score (500–579 possible with 10% down)
- Competitive fixed FHA rates
- Must met FHA manual underwriting guidelines
Who Qualifies for the $100 Down Payment Program?
To qualify, Kentucky buyers must:
- Be owner-occupants — live in the home as a primary residence.
- Submit offers during the exclusive owner-occupant period (usually the first 30 days).
- Meet FHA credit and income guidelines with manual underwriting guidelines for credit, income, assets, debt ratio etc).
- Work with a HUD-registered real estate agent and FHA-approved lender.
The Complete 5-Step Process to Buy a HUD Home in Kentucky
- Search for Homes: Visit HUDHomeStore.com → Select “Kentucky” → Look for “$100 Down Eligible.”
- Get Pre-Approved: Apply with an FHA-approved lender and secure your pre-approval letter.
- Submit an Offer: Your HUD agent submits your bid online with your pre-approval letter attached.
- HUD Review: HUD reviews all offers and prioritizes owner-occupants.
- Close: Finalize your loan, bring your $100 down payment + closing costs, and receive your keys!
Understanding Closing Costs
Expect typical closing costs of 2–5% of the purchase price. HUD may pay up to 3% of your costs, You can also roll some costs into your loan.
Property Condition and Inspections
HUD homes are sold “as-is.” Always get a professional inspection before closing. FHA appraisers ensure the home meets minimum safety and structural standards.
Why Kentucky’s Market Makes This Program Powerful
With lower home prices, moderate taxes, and a strong economy, Kentucky is ideal for FHA and HUD programs. The $100 Down Payment Program allows families to stop renting and start building equity with minimal out-of-pocket investment.
Ready to Get Started?
Call/Text 502-905-3708 or visit
MyLouisvilleKentuckyMortgage.com.
Joel Lobb – Kentucky Mortgage Loan Officer, NMLS #57916 | EVO Mortgage NMLS #1738461
Frequently Asked Questions
Can I use the $100 down program if I’ve owned a home before?
Yes. This program is available to anyone who meets owner-occupant and FHA requirements, not just first-time buyers.
Can I rent out the home after closing?
You must live in the home for at least one year before converting it to a rental property.
What if the home needs repairs?
HUD sells properties “as-is.” You can budget for repairs or use FHA 203(k) renovation financing.
