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Types of Purchasers
Anyone can purchase a HUD property. There are two types of general purchasers: Owner Occupants and Investors. There are also several special programs for purchasers who qualify.
An Owner Occupant Purchaser is a purchaser who will be living in the property that they intend to purchase. The following regulations apply to owner occupant purchasers:
1. Must certify that they will live in the property as their primary residence for at least 12 months.
2. Must certify that they have not purchased a HUD owned property as an Owner Occupant Purchaser (regardless of financing type) within the last 24 months.
All new property listings have an Owner Occupancy priority period in which only owner occupant purchasers will be considered. This period is the first 10 days that the property is listed on the Internet. (Some cities have extended owner occupant periods – this information would be noted on the Property listings on the website). If a contract is cancelled and the full 10 days on the market have not been fulfilled the property will be offered exclusively to Owner Occupants until after this period has been completed. Price reductions are sometimes made on properties and for 5 days after a price reduction preference will be given to Owner Occupant buyers. Bids by investors will not be considered until the final day of the Owner Occupancy Period.
An investor purchaser is a purchaser who does not intend to live in the property being purchased as a primary residence. An investor may purchase a HUD property to re-sell, rent, or lease the property after settlement with HUD has been completed. Investor Purchasers also include a purchaser who is buying a HUD property as a second home and does not intend to occupy the property as their primary residence.
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 3-years after you move into it. Additional details and rules may be found in the program regulations.
The TND program is open to any person "employed full-time by a public school, private school, or federal, state, county, or municipal educational agency as a state-certified classroom teacher or administrator in grades K-12." Participants must certify that they are employed by an educational agency that serves the school district/jurisdiction in which the home they are purchasing is located.
Teachers wishing to purchase a home under the TND program must be in good standing with their employer. Your employer must certify that you are a full-time teacher or school administrator. 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 TND home. You must agree to live in the HUD home as your only residence for 3-years after you move into it.
Additional details and rules for the Teacher Next Door program may be found in Housing Notice 99-30.
The FND program is open to any person who, for purposes of this program, is defined as an individual who is employed as a full-time firefighter by a fire department of the federal government, a state, a unit of general local government, or an Indian tribal government serving the area where the home is located.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 FND home. You must agree to live in the HUD home as your only residence for 3-years after you move into it.
Additional details and rules for the Firefighter Next Door program may be found in Housing Notice 05-17674.
The END Program is open to any person who, for purposes of this program, is defined as an individual who is employed as a full-time firefighter or emergency medical technician by a fire department or emergency medical services responder unit of the federal government, a state, a unit of general local government, or an Indian tribal government serving the area where the home is located.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 END home. You must agree to live in the HUD home as your only residence for 3-years after you move into it.
Additional details and rules for the Emergency Medical Technician Next Door program may be found in Housing Notice 99-30.
HUD-approved Non-Profits receive a discount on purchasing HUD properties. This discount is between 10% and 30% off the purchase price of the property and is based on the insurability and location of the property. The non-profit agency MUST be a HUD Registered Non-Profit Agency to qualify for the discount for more information on how to become a HUD approved Non-profit please click the link below.
How to become an Approved Non-Profit (housing)
HUD is offering local governments the opportunity to take advantage of a unique HUD resource - HUD Homes for Sale - at a bargain rate of $1, plus closing costs. The new Dollar Homes Initiative will allow local governments to purchase select HUD Homes for Sale for $1 and use them as part of a community revitalization or neighborhood affordable housing strategy. The HUD Homes available under this new program are those that have been on the market for six months or more. Local governments can partner with local non-profit homeownership organizations or tap into existing local programs to resell the homes to low- and moderate-income residents of the community. In these cases, the local governments will be required to purchase these properties and convey it to the non-profit organizations for rehabilitation and resale to first-time homebuyers. Hundreds of properties are available currently and new houses will be added on a weekly basis.
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