Posted on: 13th Dec, 2006 01:23 pm
I have heard of some program by which law enforcement officers can get a home for price fifty percent less than the actual list price?Is it true?can I get some details of such program if it is really true. thanks,Johann
Johann,
What you have heard is quite correct.
There is a HUD program by which law enforcement officers like you, emergency medical technicians, firefighters and pre-kinder garden to twelfth grade teachers can get a home for a 50% discounted price of the actual listed price of a home.
This program is called the Good Neighbor Next Door Sales Program.
What you have heard is quite correct.
There is a HUD program by which law enforcement officers like you, emergency medical technicians, firefighters and pre-kinder garden to twelfth grade teachers can get a home for a 50% discounted price of the actual listed price of a home.
This program is called the Good Neighbor Next Door Sales Program.
hi johann,
let me add that there is a condition which you need to fulfill. you will have to provide a commitment that you will live in that property for next 3 years as your sole residence.
allow me to provide you with some more details.
single family homes are exclusively listed for this gnnd sales program for sales and are located in the revitalization areas (a revitalization area is a hud specified neighborhood requiring economic & community development).
properties for such program are listed only for five days for purchase.
for purchasing such a home you will have to follow the hud provided instructions for submitting your purchase interest. and if other people also submit their interest in purchasing the same property then the selection is done through a random lottery.
you will also have to meet the hud's requirements to qualify as an applicant and need to comply with the regulations specified for the program. the actual number of properties available for sale through this program is very limited and the listing of such properties changes on a weekly basis.
one other thing is that you will be required to sign a second mortgage and a note for the amount of discount provided in this program. but you will not have to make any actual amount or interest payments on this mortgage which is called a "silent second" if you fulfill the 3 year commitment of living in the same home as your sole residence.
do let us know if you have any other questions about this program.
thanks
blue
let me add that there is a condition which you need to fulfill. you will have to provide a commitment that you will live in that property for next 3 years as your sole residence.
allow me to provide you with some more details.
single family homes are exclusively listed for this gnnd sales program for sales and are located in the revitalization areas (a revitalization area is a hud specified neighborhood requiring economic & community development).
properties for such program are listed only for five days for purchase.
for purchasing such a home you will have to follow the hud provided instructions for submitting your purchase interest. and if other people also submit their interest in purchasing the same property then the selection is done through a random lottery.
you will also have to meet the hud's requirements to qualify as an applicant and need to comply with the regulations specified for the program. the actual number of properties available for sale through this program is very limited and the listing of such properties changes on a weekly basis.
one other thing is that you will be required to sign a second mortgage and a note for the amount of discount provided in this program. but you will not have to make any actual amount or interest payments on this mortgage which is called a "silent second" if you fulfill the 3 year commitment of living in the same home as your sole residence.
do let us know if you have any other questions about this program.
thanks
blue
Hi everbody, I was able to understand the specifications that you have mentioned but wanted to know one more thing. If suppose I want to get a mortgage for the purchase will that be allowed?
Yes Johann, you can apply for a FHA-insured mortgage. Other advantage you will get is that you will be required to make only $100 down payment and would be allowed to finance the total closing cost expenditure. The monthly mortgage payments and the total cost of the repair will be combined into a single monthly payment.
If suppose the home you have selected to purchase requires repairs then you would be eligible to get a FHA rehabilitation mortgage. But such repairs should be for more than $5,000.
Colin
If suppose the home you have selected to purchase requires repairs then you would be eligible to get a FHA rehabilitation mortgage. But such repairs should be for more than $5,000.
Colin
As per regulations of the program you will be required to certify each year that you are living in the property.
You may ask that if one is called to active military duty then how he will meet the 3 year occupancy regulation?
For the time period a person's active military duty is on, there is clemency provided to the person. Such a person is not required to occupy the property for the period he is on active duty and can also rent it out. But for that National Servicing Center (NSC monitors the GNND loan servicing after closing) is required to be notified.
What happens after 3 year period is over?
After the occupancy period is over HUD will release the second mortgage. And will file a mortgage satisfaction at county recorder's office where you live. After it is filed the second mortgage will not appear on the title of that property.
Good Luck :)
Ugor
You may ask that if one is called to active military duty then how he will meet the 3 year occupancy regulation?
For the time period a person's active military duty is on, there is clemency provided to the person. Such a person is not required to occupy the property for the period he is on active duty and can also rent it out. But for that National Servicing Center (NSC monitors the GNND loan servicing after closing) is required to be notified.
What happens after 3 year period is over?
After the occupancy period is over HUD will release the second mortgage. And will file a mortgage satisfaction at county recorder's office where you live. After it is filed the second mortgage will not appear on the title of that property.
Good Luck :)
Ugor