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. |
