Local governments buy unsold HUD homes for $1 and resell to qualified low-income buyers at deep discount.
After a HUD-foreclosed home sits unsold for 6 months, HUD offers it to local government units for $1. Cities/counties then resell to low-to-moderate income owner-occupants via nonprofit housing partners, often with silent second mortgages, forgivable rehab grants, and 0% CDBG financing stacked on top. Best accessed through the local Housing Authority or NeighborWorks affiliate.
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Eligible veterans buy with $0 down, no PMI, and assumable rates.
0% down in USDA-eligible areas — includes many suburban zip codes.
Neighborhood Assistance Corp of America — below-market rate, zero down.
Fannie / Freddie low-income programs — 3% down + reduced PMI.
1.25–2.25% down for enrolled tribal members — nationwide.
State / county / employer DPA — $5K–$50K forgivable or 0% deferred 2nd.
$100 total down on FHA-repossessed homes for owner-occupants.
3.5% down + rehab budget rolled into one loan — buy distressed properties.