How
Can I Participate:
These properties are 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 button ("OND/TND/FND/EMT Submit
a Bid"). Bids are awarded once each week. Your bid must
be the amount of the list price (but, the actual price you
will pay is up to 50% off).
A computer randomly selects the winning bid.
The winning bid is posted each week on the web site where you
made your bid.
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
you fulfill the three-year occupancy requirement.
These are new properties that have not yet
been offered to the general public and are exclusively available
for Officers, Teachers, Firefighters, Emergency Medical Technicians
and Non-Profits for 5 days before going to the General List.
Discount and Loan Programs:
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 $100,000, a qualified officer,
teacher, firefighter, or EMT can buy it for $50,000. To make
a HUD home even more affordable, you can apply for an FHA-insured
mortgage with a down payment of only $100 and you may finance
all closing costs and Real Estate commission fees into the
loan (all conventional loan require you pay the closing costs
out of your pocket). If the 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.
Other Potential Financial Benefits:
Because homes sold through the OND/TND/FND/EMT
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.
As a qualified Officer, Teacher, Firefighter,
or Emergency Medical Technician, you do not have to provide
an earnest money deposit with the purchase contract when participating
in this program. This is unheard of in the real world!
Steps to buying a FND property:
1. Sign Disclosures and agency agreement with
Kent.
2. Get pre-qualified with a lender (I can recommend a good
one).
3. Review Properties each Friday with Kent (email and phone
conversations).
4. Physically look at homes of interest with Kent.
5. Kent submits bid on-line on desired property(s).
6. Kent checks Wednesday morning to see if we won the bid.
7. If we win, Kent turns in Written offer and all addendums.
8. Complete formal loan application with lender.
9. Hire an Inspector to inspect the property (Kent will help
coordinate the turn on and off of utilities to facilitate the
inspection).
10. Close on property (45 days from contract acceptance).
What’s my out of pocket expenses:
Down Payment (FHA 203(b)) = $100
Home Inspection = $300 ish
Earnest Deposit = $0
Total = $400
Other expenses: None, unless for some
reason we need to request an extension beyond 45 days after
contract acceptance to close. Extensions are issued in 15
day blocks at $25/day (in most cases) = $375. A prorated
refund will be issued at closing for any unused days. |
