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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 encouraging
these valuable professional public servants to become homeowners in
revitalization areas.*
Who Can
Participate?
You
must be a full-time, sworn law enforcement officer who is "employed
full-time by a Federal, state, county or municipal government; or a
public or private college or university." You must be "sworn to uphold,
and make arrests for violations of, Federal, state, county, or municipal
law." Your employer must certify that you are a full-time police officer
with the general power of arrest. You don't have to be a first-time
homebuyer to participate. However, you cannot own any other home at the
time you close on your OND home. You must agree to live in the HUD home
as your only residence for three years after you move into it.
How
do I participate?
OND
property is
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 Officer 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 website where you made your bid.
You
may also buy a home from a government agency or a nonprofit organization
that bought the home from HUD. When an agency or nonprofit buys the
house, HUD expects the full discount to be passed on to you.
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 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.
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.
Discuss these financing options with your lender.
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 Revitalization Area
neighborhoods. Contact your state government housing office or local
municipal government and request information on assistance for
homebuyers.
I
already purchased a home under the OND Program. Where can I get
information about my second mortgage?
Information is available on the
Good Neighbor Next Door Loan Servicing page.
Where
can I get additional information?
Please contact an OND/TND/FND program coordinator at your local
HUD Homeownership Center or call (800) 569-4287. Regulations for the
Officer Next Door Sales Program (but not contact information) may be
found starting at
24 CFR 291.500 and
Housing Notice 04-23.
Comments and Questions
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