This week there are 5 Good Neighbor Next Door home offered in San Antonio. This week one home is in South San ISD, 2 are in Northside ISD, and 2 are in JUDSON ISD.
GNND homes are HUD Foreclosures which are offered to teachers, firefighters and police officers and are announced and available 5 days before they go on the general MLS as a HUD foreclosures for sale. The GNND system is basically a lottery. Qualifying, winning teachers, firefighters and police officers can purchase these homes at HALF PRICE if they live in the homes for 3 years.
Each week, the homes are announced on Saturday and entries for the lottery are due by midnight on Wednesday of the following week. The winner, if any is announced on Thursday morning. All entries are for "full price".
When someone wins, the lender (following the GNNI guidelines) essentially sets up to half price loans. One loan has all closing costs and commissions rolled into the loan (if HUD is giving a house at half price, they aren't going to pay any commissions or closing costs in addition to that). For example on a home that is priced at $100,000, there would be two $50,000 loans set up. One loan can have closing costs and commissions added in if the buyer wishes. This is great because the buyer doesn't have to bring those funds in cash, they are part of the loan. Many of these homes are currently also available for the FHA $100 downpayment programs as well. This means that the buyer has very low out of pocket cash needs for the purchased.
Once purchased, the buyer makes payments on the loan which has closing costs added in. The other loan is acting as, what I call, a "shadow loan". There are no payments made on the "shadow loan". Once the buyer lives in the home for 3 years, the "shadow loan" completely goes away.
The program was designed to get professionals who work in "revitalization areas" to live in the areas they serve. GNND homes are in "revitalization areas" and this program is only offered for "first time home buyers", people who haven't owned a home in 3 years. If you or someone you know is interested in GNND homes, have them call me at 210-844-6004.
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