Good Neighbor Next Door Program Colorado
The HUD Good Neighbor Next Door program offers homes at a 50% discount from the list price. These homes are found in revitalization areas and are listed exclusively to Law Enforcement Officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians that qualify for this program.
As part of the Good Neighbor Next Door program, the buyer must live in the house for 36 months and not have owned another home in the last 12 months. The price of the house is set and typically established by the appraiser; therefore, an offer to purchase or bid is a set price. When there are multiple bids, all offers are selected by random lottery.
HUD requires that the buyer signs a second mortgage and note for the discount amount. No interest or payments are required in this "silent second" provided that the buyer fulfills the three year occupancy requirement.
Frequently Asked Questions- Good Neighbor Next Door Program Colorado
What types of mortgage financing are available?
FHA, VA, Conventional and Cash are all options. Since most of these homes will require some repair, FHA offers a 203(K) program for repairs that exceed $5,000 and a 203(b) program for repairs under $5,000. The mortgage and the cost to repair amount is combined into a single payment.
Do I have to use a Real Estate broker or Agent?
Am I required to put earnest money down?
Yes. Earnest money is 1% of the purchase price to be handed over to the Title Company that HUD selects within 48 hours of acceptance. This money will be credited to you at the time of closing. Please note, earnest money checks are subject to fortfeiture for failure of th buyer to close a sale.
What if I leave employment, that made me eligible, for any reason, during the 36 month period?
Nothing happens, but you are requred to fulfill the 36 month occupancy period. Please do not participate in the program if you know in advance that you will not be employed as required for at least one year.
What happens if I do not live in the house for the entire 36 months?
HUD can demand repayment of the discounted amount on a prorated basis. In any case of fraud or abuse, HUD will refer the case to HUD's office of the Inspector General for investigation and possible criminal prosecution.
How often are the Good Neighbor Next Door homes released for offer?
HUD releases new properties every Friday. There are typically three to five homes each week and sometimes as high as seven homes. This may not sound like very many homes, but on a monthly basis this could be upwards of 20-25 homes that HUD offers at half price and 240 - 300 a year. So there is plenty of opportunity. Please note, the offer has to be submitted to HUD by Tuesday night with results being posted the next day (Wednesday). All contracts are then submitted to HUD by Friday.
The Good Neighbor Next Door Program is an excellent opportunity to become an owner at a 50% discount. Working with a dedicated agent on your home purchase will save you time, and add professional assurance to every step of the process. With the guarantee of a solid investment, the decision could also make you more wealthy when it's time to sell. To get in touch with us today, please contact us whenever you'd like.
External Links - Good Neighbor Next Door Program Colorado
PLEASE NOTE, THE ASSET MANAGER FOR HUD HAS CHANGED AS OF SEPTEMBER 2010. THE LINK ABOVE WILL TAKE YOU TO THE NEW SITE.
Working with a dedicated agent on your next home purchase will save you time, and add professional assurance to every step of the process. With the guarantee of a solid investment, the decision could also make you more wealthy when it's time to sell. To get in touch with us today, please contact us whenever you'd like.