{"id":69576,"date":"2021-04-16T11:29:42","date_gmt":"2021-04-16T15:29:42","guid":{"rendered":"https:\/\/blog.myewm.com\/?p=69576"},"modified":"2021-04-16T11:29:42","modified_gmt":"2021-04-16T15:29:42","slug":"frontline-workers-can-buy-homes-at-a-deep-discount","status":"publish","type":"post","link":"https:\/\/blog.myewm.com\/?p=69576","title":{"rendered":"Frontline Workers Can Buy Homes at a Deep Discount"},"content":{"rendered":"<div class=\"field field--name-field-summary field--type-text-long field--label-hidden field--item\">\n<p>Teachers, firefighters, EMTs and police can buy HUD homes at half price within seven days of posting. Few exist now, but the number will likely grow post-foreclosure ban.<\/p>\n<\/div>\n<div class=\"field field--name-field-body field--type-text-long field--label-hidden field--item\">\n<p>NEW YORK \u2013 The Department of Housing and Urban Development\u2019s (HUD) Good Neighbor Next Door Program serves a dual purpose: To provide homes to frontline workers at a 50% discount and help revitalize communities around the country.<\/p>\n<p><strong>Who\u2019s eligible?\u00a0<\/strong>The\u00a0<a href=\"https:\/\/www.hud.gov\/program_offices\/housing\/sfh\/reo\/goodn\/gnndabot\" target=\"_blank\" rel=\"noopener noreferrer\">Good Neighbor Next Door Program<\/a>\u00a0is available to law enforcement officers, firefighters, emergency medical technicians (EMTs), and teachers.<\/p>\n<p><strong>How deep is the discount?<\/strong>\u00a0Eligible participants can purchase a home at 50% off the current appraised value. For example, if a home appraises for $300,000, the buyer will pay $150,000. The other $150,000 becomes a \u201csilent\u201d second mortgage that is forgiven after 36 months of residency.<\/p>\n<p><strong>Specific eligibility.<\/strong>\u00a0Not every police officer, firefighter, EMT, or teacher qualifies for the Good Neighbor Next Door Program. Here are the specifics.<\/p>\n<ul>\n<li><strong>Law enforcement.<\/strong>\u00a0Officers must be employed full-time by a federal government, state, parish, local government, or Indian tribal government. As part of your job duties, you must be sworn to make arrests. Law enforcement agents of private companies are not eligible.<\/li>\n<li><strong>Firefighters and EMTs<\/strong>. Like law enforcement officers, you must be employed full-time by a federal, state, parish, local government, or Indian tribal government. First responders working for privately owned companies are not eligible.<\/li>\n<li><strong>Teachers<\/strong>. You must be a classroom teacher for pre-kindergarten through 12th grade and employed full-time by a state-accredited public or private school. Members of support staff are not eligible.<\/li>\n<\/ul>\n<p><strong>What\u2019s the catch?<\/strong>\u00a0Eligible applicants must purchase a home in the community they work in, and the home must be used as their primary residence. There is an annual certification process to ensure that participants live on the property for three years. After three years, the \u201csilent\u201d second mortgage is forgiven, and the homeowner is free to sell the property. When the home is sold, the homeowner keeps all the proceeds.<\/p>\n<p><strong>How to buy.<\/strong>\u00a0When a HUD home hits the market, it is only available to participants in the Good Neighbor Next Door Program for seven days, meaning you must act quickly. Check the listings for HUD homes online at\u00a0<a href=\"https:\/\/www.hudhomestore.com\/Home\/Index.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">hudhomestore.com\/Home\/Index.aspx<\/a>.<\/p>\n<p>Once HUD knows you\u2019re interested, you will be assigned a real estate agent to assist you with the process. The agent provides you with the information you need to get pre-qualified with a mortgage lender and places your name in a lottery drawing. The name HUD pulls from that drawing is the \u201cwinner.\u201d While that may sound like a frustrating process, HUD insists that the odds of winning a home are high and that many homes go unclaimed in the seven-day period. Also, because you\u2019re competing against a select group of buyers, there are rarely many names in the drawing at the same time.<\/p>\n<p>The amount of money you need for a down payment depends on the type of loan you choose.<\/p>\n<p>The minimum credit score required also depends on the type of mortgage you get.<\/p>\n<p><strong>What if a home is a mess?<\/strong>\u00a0All properties for sale are HUD-owned and frequently located in areas considered in need of revitalization. Although HUD homes are sold \u201cas is,\u201d buyers can use any loan type to purchase the property, including: VA loans, FHA loans, USDA loans and Conventional loans.<\/p>\n<p><strong>Down payment needed<\/strong><\/p>\n<ul>\n<li>FHA: $100<\/li>\n<li>VA: $0<\/li>\n<li>USDA: $0<\/li>\n<li>Conventional: 5%<\/li>\n<\/ul>\n<p>Data Sources: FDIC; VA.gov; Mortgage Research Center; Quicken Loans<\/p>\n<p><strong>Minimum credit score needed<\/strong><\/p>\n<ul>\n<li>FHA: 580: Eligible for maximum financing 500 to 579: Eligible for maximum loan to value of 90%<\/li>\n<li>VA: No minimum, but lender must review entire loan profile<\/li>\n<li>USDA: Applicants with scores below 640 are subject to manual underwriting; applicants with scores above 640 are eligible for automated underwriting<\/li>\n<li>Conventional: Typically 620 or more<\/li>\n<\/ul>\n<p>Data Sources: FDIC; VA.gov; Mortgage Research Center; Quicken Loans<\/p>\n<p>By Dana George<\/p>\n<p>\u00a9 Copyright 2021, Erie Times-News. All rights reserved.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Teachers, firefighters, EMTs and police can buy HUD homes at half price within seven days of posting. Few exist now, but the number will likely grow post-foreclosure ban. NEW YORK \u2013 The Department of Housing and Urban Development\u2019s (HUD) Good Neighbor Next Door Program serves a dual purpose: To provide homes to frontline workers at [&hellip;]<\/p>\n","protected":false},"author":1401,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_expiration-date-status":"saved","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[]},"categories":[9,25,59],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.myewm.com\/index.php?rest_route=\/wp\/v2\/posts\/69576"}],"collection":[{"href":"https:\/\/blog.myewm.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.myewm.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.myewm.com\/index.php?rest_route=\/wp\/v2\/users\/1401"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.myewm.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=69576"}],"version-history":[{"count":1,"href":"https:\/\/blog.myewm.com\/index.php?rest_route=\/wp\/v2\/posts\/69576\/revisions"}],"predecessor-version":[{"id":69577,"href":"https:\/\/blog.myewm.com\/index.php?rest_route=\/wp\/v2\/posts\/69576\/revisions\/69577"}],"wp:attachment":[{"href":"https:\/\/blog.myewm.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=69576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.myewm.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=69576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.myewm.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=69576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}