Business & Finance Renting & Real Estate

Half Price Houses! (For Those Who Qualify)

The Department of Housing and Urban Development (HUD) has a program that allows home buyers to purchase a home for a 50% discount.
This is known as the Good Neighbor Next Door Sales Program (GNND) which allows certain professionals to qualify.
The following article aims to explain the terms of this program, who is eligible and how to participate.
The GNND sales program provides opportunity to those in certain service-oriented professional fields to own a home for considerable discounts because they provide stability and beneficial city services.
The job titles eligible are: law enforcement officers, teachers, firefighters and emergency medical technicians.
These job-holders are commonly stewards of their neighborhood and their specialized expertise benefits the community at large.
These individuals can purchase a home using cash or conventional, FHA or VA loans.
HUD will require the buyer to take on a forgivable second mortgage equal to the discount given as long as the buyer stays in the property for a minimum period of time.
The earnest money deposit must equal 1% of the list price but will be a minimum of $500 and a maximum of $2000.
There is no negotiation on price for these houses because of the significant amount forgiven.
Complete forgiveness of this second mortgage requires a 36 month residence in the property.
Owners can keep all of the equity they earned after this minimum stay.
Anything short of this may impose a pro-rated payment back to HUD on the discounted portion given.
The occupancy period begins on the date that the buyer is allowed to move in to the property (up to 180 days after purchase).
Homeowners must certify that they are living in the property as a primary residence and they may be subject to random spot checks by HUD representatives.
Only single family houses are allowable for the program and applicants must use a Real Estate Agent to make the purchase.
The purchaser does not have to be a first time home-buyer, but they must not have owned a home for a period of one year prior to the date they submit the offer.

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