What if you could buy a home in Maryland with only $100 down instead of the full FHA down payment? It sounds almost too good to be true — but there is a real program that lets owner-occupants do exactly that on HUD-owned homes. The catch? There are only a handful of these homes available at any given time, and one common mistake can cost you the deal entirely. Keep reading and we will walk you through everything you need to know, straight from a licensed Maryland real-estate agent who works with these listings every day.
What Is a HUD Home, Anyway?
A HUD home is a property that was purchased with an FHA-insured loan, and the previous owner went through foreclosure. When that happens, the U.S. Department of Housing and Urban Development (HUD) takes ownership of the home and lists it for sale through a special government website called hudhomestore.gov. Because HUD wants owner-occupants — real families who will live in the home — to have first crack at these properties, they offer a special incentive: you can buy one with just $100 down instead of the standard 3.5% FHA down payment.
That is a significant difference. On a $200,000 home, a 3.5% down payment is $7,000. With the HUD $100 Down program, you only need $100. That alone can open the door for buyers who have steady income but haven not been able to save a large lump sum.
How Rare Are These Homes in Maryland?
Here is the reality check you need before you get too excited: at the time this video was made, there were only 19 HUD homes in the entire state of Maryland. That is not a lot. Inventory changes daily, so the number could be higher or lower when you are reading this. You can always check the current listings yourself at hudhomestore.gov, but the point is that these are not everywhere — you have to move quickly when the right one shows up.
The video walks through the actual current listings and their prices, so you can get a realistic sense of what is available and what these homes look like in the real world.
The Big Trap: Rehab Loans and Losing Your $100 Down Benefit
This is the part that trips people up, and it is important enough to say clearly: if the HUD home you want requires a rehab loan, you lose your $100 down payment assistance.
Here is why. The $100 Down program works with standard FHA financing, called a 203(b) loan. But if a home needs significant repairs, FHA requires you to use a 203(k) rehab loan instead. The 203(k) is a great product on its own, but it does not qualify for the $100 Down benefit. You would then be back to a standard down payment.
So before you fall in love with a HUD listing, find out whether the home is being sold in a condition that qualifies for standard FHA financing. Your HUD-registered broker and your lender can help you figure that out before you write an offer.
What $100 Down Does NOT Mean
The video is refreshingly honest about this, so we will be too. $100 down is not $100 out of pocket. Here is what that means in plain language:
- You still owe closing costs — unless HUD separately agrees to cover them, which is negotiable but not automatic.
- You will need to pay for an appraisal and a home inspection.
- FHA loans require upfront mortgage insurance, which adds to your costs at closing.
Anyone who tells you that you can buy a HUD home with literally nothing out of pocket is not giving you the full picture. The $100 Down program is a real and valuable benefit — it just covers the down payment portion, not every single closing cost.
Who Qualifies for the HUD $100 Down Program?
The requirements are straightforward, but you need to meet all of them:
- Owner-occupant only — you must plan to live in the home for at least one year. Investors are not eligible.
- FHA financing — the purchase must use a 203(b) loan (or 203(k) if repairs are needed, though that disqualifies the $100 down benefit as explained above).
- The $100 down must be written into the sales contract — it does not happen automatically; your agent needs to include it correctly.
- No HUD home purchased in the past 24 months — you cannot have bought another HUD property recently.
- You must bid through a HUD-registered broker — not every agent is set up to submit HUD offers, so make sure yours is.
Why Having the Right Agent Matters
Because HUD offers have to go through a registered broker and because the $100 Down benefit must be written into the contract a specific way, having an agent who knows the process is not optional — it is essential. A small paperwork mistake can cost you the entire benefit. The agent in this video notes that his brokerage participates in the HUD program, so if you are in Maryland, working with someone already set up in the system saves you a headache.
FAQ: HUD Homes and the $100 Down Program in Maryland
Are there really only 19 HUD homes available in Maryland?
At the time the video was recorded, yes — only 19 HUD homes were listed across the entire state of Maryland. HUD inventory changes daily, so check hudhomestore.gov for current listings.
Do I really only pay $100 at closing?
No. The $100 replaces your down payment, but you are still responsible for closing costs, the appraisal, the home inspection, and upfront FHA mortgage insurance — unless HUD agrees to cover closing costs separately as part of the negotiation.
What happens if the home needs repairs?
If the home requires a rehab loan (FHA 203(k)), you lose the $100 Down benefit and would need to come up with a standard down payment instead. Ask your agent and lender to confirm the home's condition and loan eligibility before making an offer.
Can investors use the $100 Down program?
No. The program is for owner-occupants only. You must intend to live in the home for at least one year.
Ready to Find Out If You Qualify?
The HUD $100 Down program is one of several ways Maryland first-time buyers can get into a home with less money upfront. If you want to know which programs fit your situation — including HUD homes, state assistance, and other options — take two minutes and see which Maryland programs you qualify for. It is free, it is fast, and it could change what you thought was possible.
This article is for education only and is not financial or legal advice. Program details change; verify with the program administrator. Not affiliated with any government agency or the Maryland Mortgage Program.