HUD Special For Police Officer, Teacher, Firefighters – GNND

Posted by Matthew Lahti on Monday, March 4th, 2013 at 10:16am

The Good Neighbor Next Door (GNND) program offered is a great way for the everyday service heroes in the United States to purchase a home that has gone into a HUD foreclosure.

The Good Neighbor Next Door (GNND) program offered is a great way for the everyday service heroes in the United States to purchase a home that has gone into a HUD foreclosure. These homes and their mortgages are insured through the FHA or Federal Housing Association and when the buyers who live in those homes can’t afford the payments go into foreclosure are offered to the public. Being on the list gives you an advantage in bidding for and obtaining these HUDhomes.

Because the professions mentioned above are considered to be good neighbors, HUD offers the program to them as well as Emergency Medical Techs (EMT) and gives them the chance to own a home in the areas they work. There are some guidelines for the GNND rewards program in order for you to obtain a new home, let’s take a look at them and see how you can qualify if you are a firefighter, teacher, police officer, or EMT.

o Live Where You Work – The professionals who fall under the GNND program are restricted to those who choose to buy HUDhomes in the areas where they serve and work. For instance, if you serve in a certain neighborhood in a big city, and fall under one of the professions, you are eligible only to purchase within that neighborhood’s limits, unless you are a law enforcement officer. The live in/serve in rule does not apply to police officer.

o Time Limits and Employment – All people who wish to buy a HUD repo home must agree to make the HUD home their only residence for three years following the purchase and must be employed in their profession full time.

o Top Points – The rewards program offers these professionals a 50 percent discount off the listing price and the HUDhome must be in a revitalization area. All bidders are selected through a lottery program and offers must be submitted through a licensed real estate broker who is certified to sell. You must also be able to produce some earnest money at the time of your offer, which is returned to you if you do not receive the lottery bid win.

o Restrictions – If both you and your spouse fall into the professional rewards program, only one of you may apply and you can only apply once for the program.

o Descriptions of Each GNND – Each professional who qualified for the program has certain descriptions. Law Enforcement professionals or officers must be employed by a law enforcement agency of the federal, state, local or Indian tribal government and sworn to uphold their divisional or municipal laws. Law Enforcement Officers are not restricted to the work/live rule that other professionals must adhere to. Teachers must work in a state accredited public or private school teaching K-12 students and the serve students from the area where the hudhome is located. Firefighters and EMTs must be employed by a fire department or emergency medical services responder unit of the federal, state, town or local government or an Indian tribal government and serve in the area where the home is located.

o Owner Occupied – As stated above, you must agree to the restriction of living in the HUDhome in an owner-occupied manner for three years beyond the closing. If interruption of those three years occurs and is deemed as a hardship, you may be permitted to sell the HUD home. Long-term vacations must be in writing and you must agree to resume occupancy upon your return.

o Financing Incentives – You must finance all reasonable and customary closing costs and be able to make a down payment of at least one-hundred dollars and is not good for multiple properties, only one repo home may be purchased.

o Post Purchase Obligations – You must continue to own and live in the HUDhome you purchase and certify both initially and annually thereafter that you are continuing to reside in the home.

o Preliminary Interest – If no offers are made by any GNND during the preliminary interest on a HUDhome are made, HUD will release the property for general public bid on a competitive basis.

o Required Documents – If you utilize the program, along with your sales contract, you must complete and provide the following documents:

o Inspection Addendum
o Owner-Occupant Certification Form
o Radon Gas & Mold Notice and Release Agreement
o 9549-A if you are a law enforcement officer
o 9549-B is you are a teacher
o 9549-C if you are a firefighter or EMT
o 9549-E – Employer verification form
o Land Use Restriction Addendum
o Flood Zone Addendum
o Methamphetamine Disclosure Form from Seller in Minnesota and South Dakota only
o Mortgage Pre-Qualification Letter – this must be from a lending institution staring that an in-house credit check has been performed and you are pre-qualified to obtain a mortgage.
o Certification from the Financial Institution – this must state whether the purchase is cash or that funds will be available on the day of closing.

All professionals must follow these guidelines and submit the appropriate forms. Any real estate broker who is licensed to sell HUD homes will be able to help you understand and obtain all of these forms in order for you to complete your purchase. The Good Neighbor Next Door program is a great way for people who serve in certain professions to acquire these properties with discounts and guarantees.

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