Hud Homes

The incentives vary from state to state so if you have any questions whether your area uses this program and what the applicable guidelines are, make sure you contact a knowledgeable HUD approved broker.

Good Neighbor Next Door (GNND)

HUD has a particular program of interest to those in specific professions. Once this program was referred to by the specific profession names and is now referred to under the all-inclusive program title of “Good Neighbor Next Door.”

The idea behind the program is to help those in deserving professions attain homeownership faster and at an affordable cost, since these professions are historically underpaid. It is also designed to foster development of the particular community and economic area that HUD designates as a “revitalization area.”

Officer Next Door
HUD encourages safer communities while making homeownership a reality for law enforcement personnel with their Officer Next Door (OND) program. Law enforcement personnel can purchase a HUD home at a 50% discount from the listed price. And if the officer qualifies and uses FHA financing, she may be eligible to utilize the $100 down payment program as well.

Firefighter / EMT Next Door
Firefighters and Emergency Medical Technicians can also take advantage of HUD’s GNND program. They also receive a 50% discount off the listed sales price of the home on HUD homes for sale in designated revitalized areas.

Teacher Next Door
Teachers are the final component of the Good Neighbor Next Door program, as they are also able to purchase homes in revitalization areas at a 50% discount.

Dollar Home Sales Program

You’ve probably heard it before: Buy a HUD home for $1!!! Is it true? Well, yes, but not for individual purchasers. HUD’s Dollar Home Sales Program enables local government to purchase HUD homes that have been on the market for more than six months for $1 plus closing costs. These single-family homes provide the local government the opportunity to partner with non-profit housing agencies and resell the homes to the moderate to low income residents of the area. The goal is to attract new residents and business in an effort to revitalize the area.

Non-Profit Programs

• A discount on HUD homes – this gives a non-profit the ability to bid on and purchase HUD homes at a discounted rate and then pass along those savings to first-time homebuyers and low income buyers.
• Owner-occupant treatment – this allows the non-profit to purchase the home as if they were an owner-occupant, which translates into better down payment options.
• Financial assistance to borrowers – this enables the non-profit to help buyers who are using an FHA mortgage with down payments and closing costs in accordance with FHA guidelines.

Once approved, a non-profit does not have to be re-certified for two years. Approved agencies can be found online through Find-A-HUD-Home-Today.

FEMA Qualified Hurricane Evacuees

Back in April 2006, HUD introduced a program designed to aid the evacuees of Hurricanes Katrina, Rita and Wilma. Prior to December 31, 2007, evacuees were provided specific guidelines to purchase qualified homes at a discount of 10% off the appraised value of the property. With a minimum of $500 earnest deposit placed on the home by the buyer, HUD would then pay up to 5% of the closing costs. While that program has come to an end, there are still terrific options for hurricane evacuees.

Currently, qualified hurricane evacuees renting a HUD home have the opportunity to purchase that HUD home at a 10% discount. HUD will even create a repair and maintenance fund up to 15% of that discounted price of the home in order to help the buyer make any necessary repairs and pay off any delinquent utilities on the property. Lastly, HUD will cover up to 5% of the closing costs. The only thing the qualified buyer has to do is obtain FHA financing or buy with cash.

The option to buy is available to the evacuee renter at any time while leasing the HUD home. However, the renter does have to contact the HUD Management and Marketing (M&M) Contractor of the renter’s intention to buy at least 60 days before the lease expires. The M&M contractor will inform the renters by mail whether the home may be purchased and also of the contact information of the housing counseling agencies in the area.