Charlotte Good Neighbor Next Door   Program                                                                                

The Good Neighbor Next Door Program offers teachers (pre-K-12), firefighters, emt's, and police officers

an incredible opportunity to buy a home 50% off of the list price. These professionals can contribute to the

revitalization of their communities while becoming homeowners through HUD's program. One of the

re quirements is the new homeowner must occupy the home as a sole residence for 36 months .                                  

Seriously, is this program for real? What's the Catch?

The GNND program is a 'real' program. It is offered through the U.S. Department of Housing and Urban

Development (HUD) to strengthen communities thoughout America. You may link directly to the HUD site

from the link on the frontpage of this website.

                                                                                                                                     

I've heard you can buy one of the homes for $100.00 down, is this correct?

 

HUD allows homeowners the opportunity to use FHA insured financing with this program. If you choose

to use an FHA insured mortgage program, the down payment requirement is only $100.00.                                                                                                

What about the 1% downpayment or Earnest Money Deposit,

Do I have to pay this?

 

Yes. HUD requires an Earnest Money Deposit of 1%. This amount can be no less than $500.00 and

not more than $2000.00. If you use an FHA insured mortgage product, your lender may refund at clo-

sing, the 1% minus the $100.00 down payment.

 

What are some of the other requirements?

 

You must be a teacher (pre-K-12), firefighter, emt, or law enforcement officer.

 

*Law Enforcement Officer

A person will qualify as a law enforcement officer for the purpose of the GNND program if they are employed full-

time by a law enforcement agency of the federal government, a state, a unit of local government or an Indian tribal

government; and,

if in carrying out such full time employment, the person is sworn to uphold, and make arrests for violations of, federal,

state, tribal, county, township or municipal laws.

*Teacher

A person will qualify as a teacher for the purpose of the GNND program if the person is employed as a full time

teacher by a state accredited public or private school that provides services to students in grades pre-K through 12;

and,

if the public or private school where the person is employed serves students from the area where the home is located

in the normal course of business.

*Firefighter/Emergency Medical Technician

A person qualifies as a firefighter/emt for the purposes of the GNND program if the person is employed full time

as a firefighter or emergency medical technician by a fire department or emergency medical services responder unit of

the federal government, a state, unit of general local government, or an Indian tribal government serving the area

where the home is located.

 

I provide clients with the required eligibility certification documents that must be filled out so that I can present them

to HUD once your bid has been accepted.

 

 

Which homes can I bid on? How does this part of the process work?

 

 

HUD's marketing partner makes available via their website all of the homes in the GNND program on a weekly

basis. The homes are viewable on the website Friday and available to be shown, as well as bids placed by your

Real Estate Broker during a five day period.

 

I provide a direct link via email for my clients to ensure they are viewing the GNND homes available for bidding. These

homes are available to participants in the GNND program before becoming available to the general public, investors,

or owner occupants.

 

In the event multiple bids are placed on a single property, HUD will  randomly select a winning

offer by lottery.

 

 

Does the buyer have to be a first time homeowner?

 

 

No. However, you or your spouse, may not own any other residential real property at the time of your offer, nor for

one year, prior to submitting your offer to purchase.

 

 

How long do I have to live in the home? How long do I have to maintain

my current employment?

 

 

The owner occupancy period is thirty-six (36) months. There are specific guidelines on when this period will start,

I will discuss these with you based on the financial terms and possible repairs during our initial consultation. You 

must certify a good faith intention to continue employment as a teacher, law enforcement officer, firefighter or emer-

gency medical technician for at least one year following the date of closing. You will certify to occupancy for the 36

month term.

 

What is the Rehabilitation Mortgage?

 

The FHA 203(k), 203(b) and 203(k) Streamline are all Government insured loan programs designed to help

the borrower finance needed repairs into the the loan. Each program has slightly different criteria; however,

intent is the same - to help you, the buyer pay for needed repairs to improve your home. The cost of the repairs

and the mortgage are combined into a single monthly payment. I work with lenders who are familiar with

these programs and are willing to answer any questions my clients have.

 

Does HUD provide a home warranty?

 

No. All GNND homes are sold "as-is" without any warranty.

 

How does the 50% off work?

 

There will be a second mortgage (silent) note payable to HUD, on a home purchased through the GNND program.

This second mortgage will be equal to 50% of the list price of the home. The term of the mortgage will be equal to

thirty-six months plus 30, 90, or 180 days as provided in Statute 291.540(b). At the end of the 36th month of occupancy

the amount of the second mortgage will be zero.

If the law enforcement officer, teacher, emt, or firefighter, sells or stops living in the home as his/her primary residence

prior to the expiration of the owner occupancy term, he/she will owe HUD the amount due on the second mortgage

as of the date the property is either sold or vacated.  

 

Where do I find a qualified Broker?

 

I am a qualified, licensed North & South Carolina Realtor. I have attended HUD's training for this program and currently

represent clients who wish to participate in the program. I work with lenders, as well as general contractors who are

familiar with HUD and the FHA loan process. We are here to help. If you have any questions please email or call, and I'll

make sure all of your questions are answered.

 

Thank you, I appreciate your time!