A federal government program allows current teachers (Pre-K to 12), law enforcement officers, firefighters, and emergency medical technicians (EMT) to purchase an eligible HUD-owned home for one-half its fair market value. The program is known by several different titles (Good Neighbor, Officer Next Door, and Teacher Next Door Programs). The Housing and Urban Development (HUD) Department is there to help, and we'll show you make it happen.
Instructions
Getting A Home At Half Price
1. Check out the website for The Housing and Urban Development (HUD) Department. The link is listed below under resources. The program can be used in conjunction with other purchasing incentives, including Veteran’s Administration (VA) home loan programs.
2. Contact the HUD office if you have questions about your eligibility. Many people who thought they weren't eligible are finding that they are!
3. Request, and complete, an application from HUD.
4. Obtain a copy of your credit report and credit score from at least one of the three major credit reporting agencies; Equifax, Trans-Union, and Experian. If you have credit issues, now is the time to take any necessary steps to improve your credit-rating and credit score. Credit reporting agency websites may allow you to test different methods that would increase your score. For example, if you have a major medical bill, you can enter the payment amount to see how much your credit score could be improved.
5. Contact a lender to pre-qualify for financing. Once you are approved, you will know how much you will be able to borrow to finance the loan. Since you will be getting the house at half its current market value, you will, of course, have only half the amount that you would need to finance without program participation. Program rules require that you live in your home for at least three consecutive years before you can sell the property or rent out the property.
6. Search for eligible HUD-owned properties to purchase. Visit the HUD website (as previously mentioned) to search for these properties. This HUD program requires that you be represented by a real estate agent in connection with your purchase. Depending on your circumstances, you may be required to pay a down payment and/or escrow deposit.
7. Prepare for moving day, settle in, and relax. However, remember that you must live in your HUD home for at least the first three consecutive years after purchasing your house.
