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If you are qualifying as an educator, you must be a full-time, state-certified classroom teacher. Support staff do not qualify for this program. Additionally, you must teach in the school district where the home is located or in an accredited charter or private school.

No, this is a random drawing where every qualified prospect has an equal chance of being selected. HUD randomly selects winners from the list of social security numbers of those who have entered the drawing.

HUD requires that neither you nor your spouse, if married, have had ownership interest in a residential property in the past 12 months. Therefore, if you sold and closed on your home more than 12 months ago and have not purchased a new one since, you will qualify for the GNND program.

HUD prices the homes based on their condition and sells them “AS IS.” If you don’t have the cash for desired renovations, you can use a special mortgage program called FHA 203K. This program lets you choose how to repair or remodel the home and increases your home loan to cover those costs. The home must appraise for the combined amount of the purchase price and the repair costs.

After three years of occupancy, HUD will release your GNND second mortgage. At that point, you have several options. You can choose to use the property as a rental investment, continue living in it as your primary residence, or sell the home and keep the profits.

The lender will give you an estimated breakdown of closing costs. Included in these costs is the buyer premium, which will be paid to the Realtor. HUD mandates that participants use a HUD-certified broker and requires GNND participants to cover the broker’s fees. This amount can be included in the buyer’s FHA mortgage.

You can only purchase one GNND home in your career.

No, HUD designates which homes qualify for the GNND program. Homes in their inventory located in “revitalization areas” are eligible for the program. These areas typically have a higher-than-average FHA foreclosure rate and a higher renter-to-homeowner ratio.

The goal of the program is for contributing members of our society to invest in and bring stability to certain neighborhoods. To achieve this, HUD requires participants to own and occupy their GNND home for three years.

When you close on a GNND home, you sign a GNND second mortgage with HUD for the amount of the discount you received on the home. This second mortgage allows HUD to monitor your home ownership. There is no interest or monthly payment associated with this second mortgage. If you sell your home before the 36-month anniversary, HUD will be notified and will require a prorated repayment of the GNND discount. For each month you own and occupy the home, HUD forgives 1/36th of the GNND second mortgage. After 36 months, the second mortgage is automatically released. Additionally, HUD will send you a yearly certification form that you must sign, confirming that you have continued to own and occupy the home.

There are incentives for participants to use FHA financing through their lender of choice. Specifically, your down payment is reduced from 3.5% to $100, and you can finance all of your closing costs into your mortgage.

If your social security number is selected in the GNND electronic drawing, you will need to sign a contract, provide a prequalification letter, and submit an earnest money check equal to 1% of the home’s list price (before the 50% discount). The earnest money has a minimum of $500 and a maximum of $2,000. This earnest money is held with the buyer’s title company and will be credited back to the buyer at closing.