When
The FHA has a number of programs that are
intended to provide large discounts on homes
for certain people. These discounts usually
involve HUD Homes – houses that are owned by
the Department of Housing and Urban
Development. When someone gets an FHA loan
and can no longer make their monthly
payments, the FHA will “foreclose” on the
house – they’ll take possession of the
property to sell it to the public. These
properties are the HUD Homes and they can be
very beneficial for people looking to
purchase a house:1. FHA and HUD want to
sell these HUD Homes as quickly as possible
in order to make back as much money as
possible. This can be to the buyer’s
advantage.
2. HUD Homes for sale are easily
accessible through a number of internet
listing sites. Visit www.hud.gov/homes to
view a list of these sites, organized by
state. Keep in mind that these internet
listing sites are not operated by the
government – they are run by management
companies under contract to HUD. Any real
estate broker can make an offer for a HUD
Home.
3. Sometimes HUD will use an
auction format to sell HUD Homes.
4. Owner-occupants are people that live
in the home they purchase. HUD puts HUD
Homes up for sale to owner-occupants first.
Following that, other people, such as real
estate investors, can purchase a HUD Home.
5. People who want to buy a HUD Home must
either have cash or qualify for a home loan.
One can also use an FHA loan to purchase and
finance a HUD Home.
6. HUD Homes are sold as-is – anybody
buying a HUD Home should get the home
inspected.
There are a few extraordinary programs
operated by HUD that directly involve HUD
Homes. Formerly known as the “Teacher Next
Door” and “Officer Next Door” programs, they
are now collectively called the “Good
Neighbor Next Door” program. In this
program, any teacher, law enforcement
officer, emergency medical technician or
firefighter can purchase a HUD Home located
in a “revitalization area” at a 50%
discount. That is, if HUD lists a home at
$100,000, then a participant in the Good
Neighbor Next Door program will be able to
purchase that house for only $50,000. This
deal may seem too good to be true – it’s
difficult to get things at the grocery store
for 50% off, let alone get a home for 50%
off. But the purpose of the Good Neighbor
Next Door program is to improve the state of
America’s communities, and HUD believes that
this huge discount will attract upstanding
citizens to areas where they are needed.
In order to be an eligible participant,
you must:
1.Be employed full-time
2. By employed as a teacher, law enforcement
officer, firefighter or emergency medical
technician
3. Be able to live in the discounted HUD
Home for 3 full years
4. Use a real estate broker or agent to buy
the discounted HUD Home
If you meet these criteria and can pay in
cash or prove that you can get financing,
then you can participate in the Good
Neighbor Next Door program. Not only can you
buy a HUD Home in a revitalization area for
50% off, your down payment is also only
$100. But what is a “revitalization area,”
anyway? Revitalization areas are located
across the United States and usually have
one of the following:
1. Very low income compared to the
surrounding metropolitan area or state
2. Many vacant or foreclosed properties
3. Low homeownership rate
4. Above-average crime rate
HUD sees revitalization areas as places
that are ripe for improvement and believe
that having teachers and police officers
move into the areas will help development.
Though “Good Neighbors” must reside in the
home for 3 years, after that period of time
they can sell the home and keep any profit
for themselves.
Contact a FHA
Specialist Now!.
| 
Call Us!
