Good Neighbor Next Door Program
Minnesota Hud Homes
How certain professions can purchase Hud homes, Foreclosures and the at a 50% discount for only $1,000 down before they are offered to the general public.
The Good Neighbor Next Door Program
The Good Neighbor Next Door Program is a random lottery process. The buyer can’t increase or decrease her bid; everyone will have the same chance. You would be entering his/her name in the lottery on the HUD website. Full-time teachers, law enforcement, firefighters, and EMTs who work in the area where the home is located can receive a 50% discount at closing. To qualify for The Good Neighbor Next Door Program, participants can’t have owned a home in home in the last 12 months. These homes are located in revitalization areas. Those are areas where there’s a higher than average FHA foreclosure rate and a higher than average renter to homeowner ratio. HUD doesn’t pay commission, but they allow buyers with FHA financing to add up to 5% of the pre-discounted price into their mortgage for the commission. HUD also doesn’t pay any of the buyer’s closing costs in the Good Next Next Door Program The FHA buyer doesn’t have to pay for an additional appraisal unless they are getting an FHA 203K Renovation Loan. If they use FHA financing they can add all of their lender fees and escrows to their mortgage. For FHA buyers using The Good Neighbor Next Door program, the down payment is reduced to only $1,000. The earnest money is different than other HUD homes. It’s 1% of the list price with a minimum of $500 and a maximum of $2,000. Buyers of the Good Neighbor Next Door Program are required to live in the home for 3 years after closing. During this time HUD will hold a silent second mortgage on the home. There’s no payment or interest due on the second unless the person sells the home before the 3 years.