The U. S. Department of Housing and Urban Development (HUD) wants to make American communities stronger and to build a safer nation. Public safety improves when police officers live in a neighborhood. The Officer Next Door (OND) program helps make this goal a reality by making homeownership faster and more affordable for Law Enforcement Officers.*
Who Can Participate?
You must be a full-time, sworn Law Enforcement
Officer, Firefighter or Emergency Medical Technician who is "employed full-time by a Federal, state, county
or municipal government; or a public or private college or
Your employer must certify your position. You don't have to be
a first-time homebuyer to participate. However, the purchaser
(or spouse) cannot have owned another home for one year prior
to the time a bid for purchase is submitted. The
property must be in the community that your work in. You must
also agree to live in the HUD home as your only residence for 3-years after you move into it.
What Are the Benefits for the Officer?
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, an officer can buy it for $50,000. To make a HUD home even more affordable, you may apply for an FHA-insured mortgage with a downpayment of only $100 and you may finance all closing costs.
Your mortgage insurance will be based only on the discounted
Qualifying homes are restricted to specifically designated single family homes, townhomes and condominiums that are located within the
revitalization areas. Other types of properties, such as a duplex or triplex, do not qualify for this program. In addition, the homes must be HUD acquired homes and cannot be other real estate for sale in the area (i.e. VA foreclosure homes, resale homes or new construction). HUD sells all qualifying homes as-is. In other words, HUD does not provide any guarantees or warranties.
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.
Because homes sold through the OND 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
How do I participate?
Officer Next Door property is listed and sold exclusively over the internet.
Properties are single-family homes located in
Properties available through the program are marked with a special Office Next Door button. Bids are awarded once each week. Your bid must be the amount of the list price. You may submit your bid directly or utilize the services of a real estate broker. Winning bids are randomly selected by computer. 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 that you fulfill the three-year occupancy requirement.
What happens if I canít fulfill my obligation or I am no longer an Officer?
Depending upon the circumstances, failure to fulfill the three year residency requirement may have serious consequences. HUD may restrict the home owner from selling the property for no more than 110% of the original sales price. In addition, HUD may require all or part of the discounted amount to be repaid. Generally the pro-rated repayment amount goes as follows: repayment of 90% of the discounted amount during the first year, repayment of 60% of the discounted amount during the second year, and repayment of 30% of the discounted amount during the third year. Should fraud or other serious charges suspected, HUD may file criminal charges against the Officer, ban the Officer from further participation from any HUD, FHA, and other Federal programs, and may face the possibility of serious fines and potential prison time. HUD will conduct "spot checks" during the first three years to insure that the residency requirement is being fulfilled.
How can I get more information?
You may search
for foreclosure's here,
Contact a local lender or
Realtor in your area.