The title may sound incredible, but it reflects the goal of a Federal Housing Administration (FHA) homebuyer assistance program aimed at selling homes the FHA has foreclosed upon and now are owned by the federal Department of Housing and Development (HUD).
There are, however, several strings attached:
It's not available to everyone: Only teachers, firefighters, police officers and emergency medical technicians can participate. The FHA wants to give these community servants an opportunity to live close to where they work. Qualifying professionals don't have to be first-time buyers.
Not every HUD-owned home qualifies. Only homes in what are described as "revitalization areas" (areas with a combination of low household incomes, low homeownership rate and a significant number of HUD-owned properties) can be purchased under the program. The professionals who buy the house must be working where the house is located.
Qualifying professionals need to act very quickly. Homes that are part of the program are listed for sale on the HUD web site and program bids accepted for the first five days only. If no one bids for them in the Good Neighbor phase then the property is made available at full asking price and the bidding opened up for everyone.
The buyer must commit to live in the property for at least three years. If they leave early, they will be charged a pro-rated portion of the unpaid half of the original asking price.
Lest one become all giddy with excitement about possibly owning a home for half price, there are very, very few properties available. I checked recently and only found one condo in all of Santa Clara county, and it had already passed the five-day half-price bidding period. Buyers wanting to take advantage of this opportunity are going to have to be extremely patient and obsessively diligent at checking the HUD property site.
Regardless, any help for homebuyers is a good thing right now; especially for people who have chosen community service careers that may put them at a disadvantage for home affordability.
For more information, visit HUD's website.
Comments(0)