Did you know about the GNND Program?

HUGE success story coming from one of our clients this month. About 3 years ago we helped our client purchase a property through the Good Neighbor Next Door program offered by HUD. This program offers select HUD homes to Teachers, Firefighters , EMT’s and Police officers for half off the listed price. It seems too good to be true right? Thats one of the first questions we hear from our prospective buyers that are hoping to take advantage of this program. As they say “nothing In life is free” well in this case it holds true. Although there are a few requirements and some hoops to jump through along the way, it's still one of the best programs we've seen be very beneficial.

Their main requirements are that buyers have to not have owned property for a year prior, service the community the property is located in, and of course be financially qualified. The other caveat to the program is the occupancy requirement. To fully satisfy the 50% “silent mortgage” buyers must live at the property for three years. Each month beginning at the closing the 50% discount is forgiven 1/36th until fully forgiven.

Enough about the program! Let’s hear about the success story! Not so fast. Did I mention you only have to put $100 down and can finance closing costs into the mortgage?

Our client bought 40 School St, East Hartford in 2019 for $67,500 with the GNND discount. I should note every HUD home is a foreclosure so they always come with some surprises, however this property had recently been renovated in the last 5 years and needed minor work. Their family was able to enjoy the property and spacious back yard while gaining more equity each month than they were paying in their mortgage. Even without the covid market we’ve had they would have been able to sell the property and earned a nice profit. With the market the way it has been we were able to market the property to receive multiple offers and able to close at our asking price of $250,000. With a profit of over $150,000 in three years (keep in mind this is tax free income) our buyers were able to use those proceeds to take the next step towards financial freedom.

To average that out they made an extra $50,000 a year tax free for utilizing the Good Neighbor Next Door program. When we enter our clients into the GNND lottery, it may seem like just a chance to buy a house, however it also could be an opportunity to gain $50,000 in net worth every year for 3 years.

If you know someone who's shoe this fits, send them our way! We'd love to continue to share this success. Click below to find out more!