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The Good Neighbor Next Door (GNND) program offered by the U.S. Department of Housing and Urban Development (HUD) is a program targeted to strengthen communities through revitalization in designated areas across the country. Home-buyers who qualify can receive as much as a 50 percent discount on the appraised value of a property in a HUD-designated revitalization area provided they fall under one of the following categories and corresponding conditions are met: Public servants such as full-time police officers, teachers, firefighters, emergency workers, and the like who meet certain requirements are eligible for the program. They don’t have to be first-time home-buyers. To qualify, buyers will be required to live in the home for at least 36 months as a member of the community. Rehabilitation loans are available to the buyer through HUD’s 203(k) or 203(b) programs. After 36 months, the buyer may move out if he or she wishes, and keep the proceeds of the sale. The buyer is required to pay earnest money equivalent to one percent of the list price—but not less than $500 or more than $2000. All approved applicants shall be considered committed to the program, so the buyer shall forfeit the earnest money in case s/he does not follow through with the acquisition.
The GNND program is an exciting opportunity for those who qualify, especially in the current market where prices are already low. By obtaining a property at an extra discount, and rolling the cost of rehab and repair into the loan, you will be in a good position to realize a substantial amount of equity once the three-year “owner-occupancy” requirement is up. For more information, visit http://www.hud.gov/offices/hsg/sfh/reo/goodn/main.cfm. Don’t miss out on this opportunity!
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