GOOD NEIGHBOR NEXT DOOR PROGRAM
Welcome Officer Next Door Participants,
This information has been designed to assist you through the
program from finding a property, placing a bid, submitting
your sales package, and closing the transaction with the correct
Paperwork. Below is some general information regarding the
program:
The U. S. Department of Housing and Urban Development (HUD)
wants to make American communities stronger and to build a
safer nation. Public safety improves when police officers
live in a neighborhood. The Good Neighbor Next Door (GNND) program
helps make this goal a reality by making homeownership faster
and more affordable for Law Enforcement Officers.
A person qualifies as a law enforcement officer for the purposes of the GNND Sales program if the person is (a) employed full-time by a law enforcement agency of the federal government, a state, a unit of general local government, or an Indian tribal government; and (b) In carrying out such full-time employment, the person is sworn to uphold, and make arrests for violations of federal, state, tribal, county, township, or municipal laws. The person must agree to live in the home as his/her sole residence for the duration of the owner-occupancy period. Neither the person (nor his/her spouse) may have owned any residential real property during the year prior to the date of submitting a bid on the home being acquired. Neither the person nor spouse may have ever purchased another home under the GNND sales program or under the OND/TND Sales programs. Additional details and rules may be found in the program regulations.
Officer Next Door properties are listed and sold exclusively
over the internet. Properties are single-family homes located
in Revitalization Areas. Properties available through the program
are marked with a special Officer Next Door button ("OND/TND
Submit a Bid"). Bids are awarded once each week. Your bid
must be the amount of the list price. You must utilize the services of a real estate agent to submit a bid and an earnest money deposit of 1% of the list price (no less then $500 and no more then $2000) is required. A
computer randomly selects the winning bid. The winning bid is
posted each week on the web site where you made your bid.
You may also buy a home from a government agency or a nonprofit
organization that bought the home from HUD. When an agency or
nonprofit buys the house, HUD expects the full discount to be
passed on to you.
In all cases, HUD requires that you sign a second mortgage and
note for the discount amount. No interest or payments are required
on this "silent second" provided you fulfill the three-year
occupancy requirement.
These properties are found in the Special Programs corner
of our website. These are new properties that have not yet
been offered to the general public and are exclusively available
for GNND participants and Non-Profits for 5 days before
going to the General List. These listings, also know as Reserve
listings, can be accessed by choosing your state and then
selecting Reserve Listings.
The selected bidder may purchase the property at a 50 percent
discount from the list price. For example, if a HUD home is
listed for $100,000, a qualified officer or teacher can buy
it for $50,000. To make a HUD home even more affordable, you
can apply for an FHA-insured mortgage with a down payment
of only $100 and you may finance all closing costs. Your real estate agents commision can now be financed.
If the home you want to purchase needs repairs, you may use
FHA's 203(k) mortgage program. This program allows you to
finance both the purchase of the home and the cost of needed
repairs. You have the benefit of one loan for both costs and
one monthly payment.
Because homes sold through the GNND program are
located in Revitalization Areas there may be additional assistance
from state or local government sources. Local or state governments
want to encourage families and businesses to move into Revitalization
Area neighborhoods. Contact your state government housing
office or local municipal government and request information
on assistance for homebuyers.
For FAQ's regarding the GNND program click here.
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