Exploring the HUD Dollar Home Program

Michael Davis
Published Mar 31, 2024

The HUD Dollar Homes program is designed to help communities via affordable housing.

How the HUD Dollar Home Program Works

HUD (Housing and Urban Development) is responsible for selling homes that were acquired through foreclosure by the Federal Housing Administration (FDA).

FDA provides and insures home loans provided by for-profit lenders.

This is to help lower-income homebuyers get into the market without the need for a large down payment.

When the homeowners are unable or unwilling to make their mortgage payments, FDA has to foreclose and take the home back.

This is in order to recover at least some of the lost money.

HUD then sells the foreclosed homes, generally at below-market prices (to reduce the government’s loss by as much as possible).

A home enters the Dollar Home Program when two conditions are met:
  • The home must have a market value of $25,000 or less.
  • HUD has been unable to sell the home after at least six months on the market.
Once those conditions are met, HUD offers the houses to the community for $1.

The community then has the option to sell the house as-is or to fix up the house and sell it as affordable housing.

The community can also partner with a local housing assistance program, such as
Habitat for Humanity, to repair and sell the home.

Potential homebuyers would need to go through the agency’s application process and meet their requirements.

HUD homes for sale are listed on the HUD Home Store.


Housing Programs Worth Exploring

The HUD has various programs to make home ownership and renting of homes more accessible.

Here are the other amazing HUD Assistance programs you can explore:

Good Neighbor Next Door (GNND)

Through this program, prospective homeowners are offered a discount of around 50%.

People eligible for this housing program include:
  • law enforcement officers
  • firefighters
  • teachers 
Requirements include:
  • the new homeowner living on the property for no less than three years.
  • the property should be located in areas that are being revived.
When someone shows interest, they must follow the application instructions and submit it.

A lottery is then done to pick the lucky recipient.

The winner will then have to sign a second mortgage, known as a silent mortgage.

Explore GNND here!

Housing Opportunities for Persons with AIDS( HOPWA)

HOPWA was developed to help people affected by AIDS specifically.

The program delivers grants to local communities, nonprofit organizations, and the state.

These funds are then used to help individuals with housing support and social services.

Explore HOPWA here!

FHA Loans

The FHA insures loans that lenders and banks have provided.

By doing so, it protects the lenders in case of default on loans for their mortgages.

Some of the other FHA mortgages include:
  • Home Equity Conversion HECM
  • 203 Improvement loans
  • Energy Efficient Mortage
  • Section 254 (a) loan
Explore FHA Loans here!

Public Housing

This program ensures affordable, up-to-the-mark housing for families.

The houses are under the local level by housing agencies (HAs).

Qualifications criteria vary and are based on the level of:
  • income
  • citizenship
  • family status
Contact your local HA or HUD office to begin the application.

Housing Choice Voucher

It is the most popular and also known as section 8.

Housing vouchers can be used to pay part of the house charges.

The recipient can decide where they want to live depending on the voucher's details. 

Explore Housing Choice Vouchers here!

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