Teachers can buy certain HUD homes for a 50% discount

by Keith Landis on February 17, 2011

HUD offers some special incentives to Teachers when it comes to buying a home and obtaining amortgages for teachers mortgage. These incentives are offered through the Good Neighbor Next Door Sales Program. HUD offers a 50% discount from the list price of the home for eligible properties. In return you must commit to live in the property for 36 months as your sole residence.

How the Program Works

Eligible Single Family homes located in revitalization areas are listed exclusively for sale through the Good Neighbor Next Door Sales program. Properties are available for purchase through the program for only five days so make sure to check the listings often. Follow the instructions to submit your interest in purchasing a specific home. If more than one person submits on a single home a selection will be made by random lottery. You must meet the requirements for a teacher and comply with HUD’s regulations for the program.

check listings and eligibility here….

http://hudhomestore.com/HUDHome/GNND.aspx

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. http://www.hud.gov/offices/hsg/sfh/nsc/gnndserv.cfm

The number of properties available is limited and the list of available properties changes weekly and with a short five day window for bidding it is important to check the list regularly. You might just end up with a home at a 50% discount.

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