Do You Know Good Neighbor Next Door Candidate?
The U.S. Department of Housing and Urban Development (HUD) offers incentives to people who are employed as
- Law Enforcement Officers
- Teachers (preK-12)
- Emergency Responders (EMT)
to purchase targeted homes at a discounted rate of 50%!
Called the good Neighbor Next Door (GNND) program is geared to improve the community by building a safer nation.
The Process - Qualifications for GNND
The Good Neighbor Next Door has limitations. To qualify, one must be gainfully employed in one of the fields mentioned above. Additionally, the home purchased must be located in the "normal course of business". For teachers that means your students should be living nearby. For both Law Enforcement, Fire and EMT it must be the state, unit of general local government, or an Indian tribal government serving the area whre the home is located.
Read more about participants.
Finding the property
HUD lists homes for sale on a weekly basis. The home is required to go through a bid process, open to buyers who can buy only for their own occupancy. After the initial bid period has passed, the home is then offered to everyone. At this time, the property becomes eligible for the GNND program. A qualified GNND buyer can then place a bid on the home.
Upon winning the bid (lottery) the buyer can finance the home with an FHA mortgage. If the home needs extensive work (many do) FHA offers construction financing called FHA203k. This allows the borrower to mortgage the home with the repairs (to be done) included in the mortgage.
If the winning bid is $150,000. The sales price would be $75,000. If repairs are needed, they can be financed on top of the $75,000.
The Fine Print - 36 Month Occupancy
Participants who purchase are required to live in the home for a minimum of 3-years. Annual certification is required around the anniversary of purchase. If the purchaser fails to register the annual certification, an investigator will visit the property. If the home is not occupied by the original purchaser during this time, it could result in civil and/or civil penalties.
Metro Denver Good Neighbor Next Door Homes
The official site to watch is here.
Obviously this program is a very popular option for our Good Neighbors. The availability of homes varies, so the buyer must be ready, but be very patient. Watching the list is critical because to get the home the timing needs to be right. HUD homes are only sold via REALTORS® so be sure to establish a relationship with a REALTOR® you can trust to act and respond in a timely manner.
Since you heard about it here, I'd like to assist you in finding a Good Neighbor Next Door Home. Please call or email me, let's talk!