HUD Officer Next Door Program | Do You Qualify?

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HUD has a program called HUD Officer Next Door. This program is mostly to help law enforcement people and firefighters/EMT's to become homeowners in revitalization areas. HUD wants to improve neighborhood across the United States. They believe one way of doing that is offering HUD Homes to people with certain occupations so that they can live in the community that they work in. HUD believes this will lead to a more stable neighborhood.

Two of these occupations are Law Enforcement Officers and Firefighter/Emergency Medical Technicians. The thinking is an officer or firefighter next door would help improved public safety.

The HUD Officer Next Door (OND) Program and the Firefighter Next Door Program has been rolled into the Good Neighbor Next Door Sales Program (GNND) along with the HUD Teacher Next Door Program . The GNND program will help make the goal of improving neighborhoods across the nation a reality by encouraging these valuable professional public servants to become homeowners in revitalization areas.

 HUD Officer Next Door Program And HUD Firefighter Next Door Program | Who Can Participate?

Law Enforcement Officer

You must be a full-time, sworn law enforcement officer who is "employed full-time by a Federal, state, county or municipal government; or a public or private college or university."

You must be "sworn to uphold, and make arrests for violations of, Federal, state, county, or municipal law." Your employer must certify that you are a full-time police officer with the general power of arrest.

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.

To be able to take part in this program as a Firefighter/Emergency Medical Technicians you must be employed full-time as a firefighter or EMT by a fire department or emergency medical services responder unit of a local government, state or federal government or even an Indian tribal government in the area your are planning on living and buy a HUD home for sale.

You don't have to be a first-time homebuyer to participate. However, you cannot own any other home at the time you close on your HUD Officer Next Door home. You must agree to live in the HUD Officer Next Door home as your only residence for three years after you move into it.

The single family homes are listed through the GNND program and are only available for 5 days to bid on.

How Do I Participate?

HUD Officer Next Door Program (GNND Program) property is listed and sold exclusively over the Internet. Properties are single family homes located in Revitalization Areas.

Properties available through the program are marked with a special Officer Next Door button. You have to use a real estate agent to make a bid and your bid must be the amount of the list price.

Some changes have been make recently to the GNND program and one of them is HUD will not pay any of the buyer's closing costs or any real estate commissions. You will have to work with your real estate agent on how much commissions the agent will receive from you.

You may also buy a home from a government agency or a nonprofit organization that bought the home from HUD. When an agency or nonprofit buys the house, HUD expects the full discount to be passed on to you.

In all cases, HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement. The second mortgage is forgiven after the three-year occupancy requirement has been fulfilled.

What Are The Benefits For The Officer To Buy A HUD Officer Next Door Home?

The selected bidder may purchase the property at a 50 percent discount from the list price. For example, if a HUD home is listed for $150,000, an officer can buy it for $75,000. To make a HUD home even more affordable, you may apply for an FHA-insured mortgage with a down payment of only $100.

If the HUD Officer Next Door home you want to purchase needs repairs, you may use FHA's 203(k) mortgage program. This program allows you to finance both the purchase of the home and the cost of needed repairs. You have the benefit of one loan for both costs and one monthly payment.

Discuss These Financing Options With Your Lender

Because homes sold through the Officer Next Door Program are located in Revitalization Areas there may be additional assistance from state or local government sources. Local or state governments want to encourage families and businesses to move into Revitalization Area neighborhoods. Contact your state government housing office or local municipal government and request information on assistance for homebuyers.

The HUD Officer Next Door Program, the Firefighter/Emergency Medical Technician Next Door Program, and HUD Teacher Next Door Program are all similar in the way a person participate, how the property is listed and purchased, and the requirements for how it is paid for. The major difference is the qualifications to participate. This program certainly can be a win-win for the buyers and the neighborhoods!

Author: Al Hardymon

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