There are currently 20 properties or more in the Raleigh area available for a $100 down payment using a special FHA Program. The homes are HUD Owned, previous Foreclosure homes. Some are in need of repair, but most of them are in good shape. New properties that qualify for this program come on the market at the end of each month. Additionally the Good Neighbor Next Door Program in NC, is available on many of these homes!
Frequently Asked Questions about HUD Foreclosed Homes that are currently for sale in NC:
Do ALL Of the homes offered by HUD Qualify for the $100 down payment program?
The property needs to be listed under the FHA Financing section as IE (Insured Escrow). In most cases you will note that if HUD feels there are repairs needed, they’ve already set aside the amount they are willing to include in the Repair. To purchase the home with the FHA $100 down program, you do not have to be a “public” employee, Teacher, Firefighter etc. You just need to qualify for a FHA mortgage.
Because The HUD Home Store might list properties for sale that were originally USDA or VA Loans, we suggest that buyers focus on homes with a FHA Case Number. In NC that would mean a case number that begins with 381 – xxxxxx
Can you use the NCHFA Downpayment and Closing Cost Assistance with the purchase of one of these homes?
Yes, you can use NCHFA funds to help with the purchase of a HUD Previous Foreclosed home. We offer the BEST First Time Home Buyer Programs in NC, and they offer up to 3% in Closing Cost and down-payment assistance!
What about the 1% down-payment or Earnest Money Deposit, Do I have to pay this?
Yes. HUD requires an Earnest Money Deposit of 1% of the sales price of the home you’re purchasing.
This amount can be no less than $500.00 and not more than $2000.00. If you choose to use a FHA insured mortgage product, your lender may refund at closing, the 1% minus the $100.00 down payment.
The Good Neighbor Next Door Program (GNND) is “targeted” for public or private school teachers (pre-K-12), firefighters, EMT’s, and Police Officers an incredible opportunity to buy a home 50% off of the list price.
One of the requirements is that the new homeowner must occupy the home as a sole residence for 36 months.
More Questions about the Good Neighbor Next Door Program in NC
Where are the Homes located?
Homes that qualify for the Good Neighbor Next Door Program in NC are primarily located in “targeted” areas that need revitalization – so the program is not usually available for all HUD homes in your County.
It’s offered for the homes that are often in the “less desirable” neighborhoods. Sometimes, however, the home might be in a great location – it just needs a ton of “help” to put it in a livable condition, and because of that, it might be offered by HUD under this 50% off program. Ultimately – HUD wants the homes to be lived in. Here’s a link to the homes in NC that qualify for Good Neighbor Next Door (as of 4/22/13 there are 9 in NC)
HUD determines the revitalization areas in each NC city.
Here are the Revitalization Area criteria from HUD.
What are some of the other requirements?
You must be a Teacher (pre-K-12), Firefighter, EMT, or Law Enforcement Officer.
A person will qualify as a teacher for the purpose of the Good Neighbor Next Door program in NC 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.
We have not been able to make this program work when a Teacher wants to live in Person County (for instance) and works for the Durham County School System…
- *Firefighter/Emergency Medical Technician
A person qualifies as a Firefighter/EMT for the purposes of the Good Neighbor Next Door program in NC 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.
Same thing applies… You can work for the Holly Springs Fire Department, but living in Harnett County (not served by the Holly Springs Fire District) would not work for this program.
- *Law Enforcement Officer
A person will qualify as a Law Enforcement Officer for the purpose of the Good Neighbor Next Door program in NC 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.
So – if you work for the NC Highway Patrol, and you can live within NC and qualify for the program. If you are a Federal Marshal, and you are authorized to make arrests anywhere in NC; any of the noted as available for the Good Neighbor Next Door Program through the HUD Home Store would be available to you.
Does HUD provide a home warranty?
No. All Good Neighbor Next Door homes in NC 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 Good Neighbor Next Door program in NC. 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 third year 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.
Interested in purchasing a distressed FHA Foreclosed home? We can help! Call Steve and Eleanor Thorne 919 649 5058. We know all of the FHA Requirements, and we off the NC First Time Homebuyer Programs that can help you buy the home of your dreams!