To make American communities stronger, the U.S. Department of Housing and Urban Development designed the Good Neighbor Next Door (GNND) programs to encourage firefighter, EMT's, police officers and teachers to buy homes in low and moderate-income neighborhoods.
HUD offers a fifty percent (50%) discount off the list price to firefighter, EMT's, police officers and teachers under the terms and conditions described below. To be eligible, firefighters, EMT's, law enforcement officers and teachers must be employed full-time, cannot own any other residential real estate, and agree to make the homes their sole residence for three years following the purchase. In addition, teachers must work in the areas in which the homes are located.
EARNEST MONEY DEPOSIT
All offers submitted by a GNND purchaser must be backed by earnest money in the form of cash or certified funds and that the Selling Broker, if used, submit with the bid, a certification that the earnest money has been deposited in the Selling Brokeršs escrow account. All offers submitted by a GNND purchaser must be backed by earnest money in the form of cash or certified funds and that the Selling Broker will forward upon contract acceptance to the Closing Agent
ELIGIBLE PROPERTIES
GNND offerings will be made available pursuant to HUD program policies.
Prior to the public listing, single-unit properties in revitalization areas will be made available to qualified Firefighters, EMT's, Officers and Teachers during the Lottery Period under the Direct Sale Program.
Under the Direct Sale Program, qualified Firefighters, EMT's, Officers and Teachers may purchase single-unit properties located in revitalization areas at a 50% discount.
Only single-family homes, condos and townhouses are eligible for GNND purchases. Multifamily units are not eligible.
The option in Housing Notice 1999-30 for Firefighters, EMT's, Officers and Teachers to receive the fifty percent (50%) discount during the competitive sales listing period is no longer available. The fifty percent (50%) discount is only available during the Lottery Period.
SUBMITTING AN OFFER
When an Firefighter/EMT/Officer/Teacher has identified a property to purchase, they must submit their bid through a HUD-registered broker, Westchester Realty is an approved HUD broker. Winning bids are randomly selected by computer.
If no Preliminary Interest is received during the notification period, the property will be made available for sale to the general public on a competitive bid basis. The option in Housing Notice 1999-30 for firefighters, EMT's, officers and teachers to receive the fifty percent (50%) discount during the competitive sales listing period is no longer available. The fifty percent (50%) discount is only available during the Lottery Period.
The 50 percent discount will be applied at closing.
HUD does not pay a buyer's closing costs or real estate brokers fees on the purchase of property through the GNND program.
The Firefighter/ EMT/Officer/Teacher may pay cash or (1) obtain financing from a HUD approved lender or (2) secure conventional financing.
The down payment for GNND is $100.00 if FHA financing is used.
- GNND program teacher participants must certify that they are "employed by an educational agency that serves the school district/jurisdiction in which the home they are purchasing is located."
- All GNND program participants are required to own and use their property as their SOLE residence for at least three (3) years.
- All GNND program participants are required to execute a second mortgage and note for the amount of the discount which HUD can call at a later date if the buyer fails to re-certify.
- After three (3) years from the date of closing, the second mortgage lien will automatically be satisfied.
- All GNND program participants can not currently own any residential real estate for one year prior to date of submitting an offer on the home being acquired through the program nor have previously purchased another home under the GNND program.
Failure to comply with this (or any GNND) requirement may result in the remaining balance of the Second Mortgage becoming immediately due and payable.
|