I wanted to shine a little light on an amazing program that does not get much promotion, the FHA Good Neighbor Next Door home loan. This is a program to help borrowers who are employed in Law Enforcement, pre K through 12thgrade Teachers, (Public or Private Schools) Firefighters and Emergency Medical Technicians (EMT's).
The highlights of the program are as follows:
A borrower that falls into one of the categories listed above, is eligible to purchase a HUD foreclosure at a 50% discount from the list price. This means an incredible buying opportunity for anyone in these categories that intends to purchase and occupy the property as their primary residence for at least 3 years.
To be clear, this is not a "fix and flip" program. HUD requires owner occupancy for a minimum of 3 years with this program and imposes strict penalties should the owner occupancy rule be broken. Borrowers are required to sign a "silent second" mortgage on the property at closing securing the other 50% of the equity should the terms be violated.
The Good Neighbor Next Door Program only reqires a $100 down payment! Closing costs and prepaid items will still be the responsibility of the borrower.
Other highlights of the Good Neighbor Next Door Program:
- Eligible borrowers must live in the area they are purchasing the HUD property
- To purchase a HUD property through the program you must be working with a Realtor (you may work with your own agent, or we will recommend an agent for you)
- Only single family homes/condos qualify, no duplex or triplex, etc...
- No first time home buyer requirement
- Earnest money of at least 1% is required
For more information, contact me, for a pre-approval consultation.
Comments(1)