Purchasing a home can be a daunting task, especially if you’re in a competitive area or a first-timer who isn’t aware of all the resources available to you.
You’ve likely heard of traditional loans through the Federal Housing Administration (FHA) or VA loans available to veterans, but if you’re a teacher, law enforcement officer, firefighter, or emergency medical technician, what you really need to be aware of is the Good Neighbor Next Door Program.
The GNND program is offered through the Department of Housing and Urban Development (HUD) and must be used to purchase a HUD property. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home for eligible participants. The only requirements are that you perform one of the occupations listed above, and you must commit to live in the property for 36 months as your sole residence.
What is a HUD home?
A HUD home is a home in which the owner had an FHA-insured mortgage but was unable to make the mortgage payment and went through foreclosure. FHA loans are insured by the Government. If a borrower defaults on an FHA loan, the Federal Housing Administration pays the lender the balance on the loan and takes possession of the property. The Government doesn’t want to hold on to these homes too long, so they often sell them below fair market value (or through programs like the Good Neighbor Next Door).
In addition to finding a more manageable price point, there are lots of benefits of buying a HUD home, whether you utilize the GNND program or not. Metrowest specializes in HUD home sales – give us a shout today and let’s get started!