|First-time buyer||Primary home purchase||Primary home refinance|
|Second home purchase||Second home refinance||Investment purchase|
|Investment refinance||Short-term solution||Long-term solution|
|Less-than-perfect credit||Recent financial hardship||Self employed|
Half Off Homes
The U.S. Department of Housing and Urban Development (HUD) wants to make American communities stronger and to build a safer nation.
The Good Neighbor Next Door (GNND) program helps make this goal a reality by encouraging law enforcement officers, pre-K through 12th grade teachers and firefighters/emergency medical technicians to become homeowners in revitalization areas.
Eligible homebuyers have the opportunity to purchase HUD owned homes (FHA foreclosures) in low to moderate census tracts, with the ability to have half of the cost of the home forgiven after only 3 years.
When you purchase a Good Neighbor Next Door eligible home, there is a first mortgage for 50% of the value of the home. The remaining 50% is a lien that remains with no interest, and no payments for 3 years.
Once the eligible homeowner has lived in the home for those 3 years, the second mortgage is forgiven, and you're left with a home that you owe 50% of what it's worth.
Not bad, right? So, the million dollar question is, who's eligible?
You may participate in the Good Neighbor Next Door program as a law enforcement officer if you are 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, in carrying out such full-time employment, you are sworn to uphold, and make arrests for violations of, federal, state, tribal, county, township, or municipal laws.
You may participate in the Good Neighbor Next Door program as a Teacher if you are employed as a full-time teacher by a state-accredited public school or private school that provides direct services to students in grades pre-kindergarten through 12. In addition, the public or private school where you are employed as a teacher must serve students from the area where the home you are purchasing is located in the normal course of business.
Firefighter/Emergency Medical Technicians
You may participate in the Good Neighbor Next Door program as a Firefighter/Emergency Medical Technician if you are employed full-time as a firefighter or emergency medical technician by a fire department or emergency medical services responder unit of the federal government, a state, unit of general local government, or an Indian tribal government serving the area where the home is located.
|AUS||Both DU and LPA|
|Mortgage Insurance||Always required|
|Maximum Loan||FHA Loan limits|
|Minimum Credit Score||550|
|Minimum Down Payment||3.5% down payment|
|Maximum DTI||46.99% - 56.99%|
|Special Features||Not specified|