Exploring the HUD Dollar Home Program


The HUD Dollar Homes program is designed to help communities provide 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), which is part of HUD. FDA provides home loans and insures home loans provided by for-profit lenders 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 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. Home enter 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 also can partner with a local housing assistance program, such as Habitat for Humanity, to repair and sell the home. In those cases, 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.


Here are some other great housing programs worth exploring:

The U.S Department of Housing and Development (HUD) tries to make housing expenses more affordable by ensuring that they do not exceed 30% of your monthly gross income. The HUD has various programs to make home ownership and renting of homes more affordable and accessible to low-income people. People should know what options are available to choose which suits them. Some of the amazing HUD Assistance programs include:

Good Neighbor Next Door (GNND)
This program offers people the opportunity to buy a home. The prospective homeowner is usually offered a discount of around 50%. Examples of people eligible for this housing program include law enforcement officers, firefighters, and teachers. However, one of the requirements is that one needs to commit to living on the property for no less than three years.

Another point about this program is that 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)
People go through different hardships in life. 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 Federal Housing Administration insures loans that lenders and banks have provided. By doing so, they protect the lenders in case of default on loans for their mortgages. This loan is beneficial since it gives one a lower credit score than regular loans.
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!

HUD Homes
These are suburban properties that are under HUD and discounted when sold. They are an outcome of the foreclosure of the FHA-insured properties. The sale is usually made to try and reclaim the money lost. If you are interested in any of these offers, you can get further details in the HUD home goods section. Note that only government-registered agents can transact these properties.

Explore HUD Homes here!

Public Housing
This program ensures they offer affordable, up-to-the-mark housing that families can afford. The houses are under the local level by housing agencies ( HAs). Qualifications criteria vary and are based on the level of income, citizenship, and family status. However, meeting these qualifications does not guarantee a spot, especially if your references don't check out. If you want to begin the application, contact your local HA or HUD offices.

Housing Choice Voucher
It is the most popular and also known as section 8. Housing vouchers are given to the people who have qualified. The 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. These properties must meet the necessary public housing requirements.

Explore Housing Choice Vouchers here!