Good Neighbor Next Door –Good Neighbor Next Door (GNND)
Good Neighbor Next Door Information
|Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians are eligible to purchase properties located in FHA-designated areas at a significant discount – 50% of the list price – in return for a commitment to live in the properties for a 3 year period.|
|Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program.|
|FHA requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this “silent second” mortgage, provided that you fulfill a three-year occupancy requirement.|
|When participants purchase properties under the Good Neighbor Next Door program they are required to certify every year that they are still living in the property.|
|An annual certification is mailed to participants, ready for signature, around the anniversary of the purchase. Participants should sign, date, and return the form to the address specified in the letter.|
|At the end of the required three-year occupancy period, FHA’s second mortgage will be released. A mortgage satisfaction will be filed with the participant’s local county recorder’s office. After the release is filed, a copy will be mailed to the property address. Thereafter, the second mortgage will not show up on the title to your property. After release, there is no further obligation to or restrictions imposed by FHA.|
Some things you need to know before putting an offer in on a HUD home:
1. Before making an offer on a HUD home you MUST have a pre-approval from a lender or a letter from the bank stating you have funds if making a cash offer.
2. You MUST have 1% of the offer available for an earnest money deposit. If you offer is accepted this money has to be in HUD’s office in 48 hours, no exceptions. This money will be applied to your closing cost when you sign your papers.
3. If the home information states that it is uninsurable than you will need to have a loan approval for a rehab loan or something other than a regular FHA or Va loan. Your lender can give you more information on loan options.
4. If the home information states that it insurable with escrows then you can either finance the escrows for repairs in your loan or bring the amount of escrows to closing and it will be held by the bank until repairs are done. Your lender will be able to explain how the escrows and repairs clause works with their rules.
5. When you are ready to make an offer on a HUD home, You need a Realtor that is able to put your offer in on the online forms. When you received a confirmation of accepting the bid everything including the check will have to be in the HUD office in 48 hours and home should be ready for you to closing in approximately 30 days!
Hope this helps you when trying to decide on a HUD Home!!!
I can show any of these homes and put your offer in on the online forms, Contact me to setup a time. Have a wonderful Day!!
This information purposes only and is not an advertisement to extend customer credit. Program rates, terms and conditions are subject to change at any time.