Firefighter - Emergency Medical Technician Next Door
The U. S. Department of Housing Urban Development (HUD) wants to make American communities stronger and to build a safer nation. Public safety improves when firefighters and emergency medical technicians live in a neighborhood contributing their expertise and knowledge to the betterment of the community. The Firefighter Next Door (FND) program helps make this goal a reality by encouraging these valuable professional public servants to become homeowners in revitalization areas.*
You must be "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. The employment requirement must be satisfied both at the time the firefighter or emergency medical technician submits a bid to purchase the home, and at the time of closing on the purchase of the home." Your employer must certify that you are a full-time firefighter or emergency medical technician as described here. You must meet this employment requirement "both at the time the firefighter or emergency medical technician submits a bid to purchase the home, and at the time of closing on the purchase of the home."
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 home you purchase as your only residence for three years after you move into it. In all other respects, the regulations for the Officer Next Door Sales program, 24 CFR 291.500, will be applicable to sales of homes to firefighters and emergency medical technicians.
FND property is listed and sold exclusively over the Internet. Properties are single family homes located in Revitalization Areas. Properties available through the program are marked with a special Firefighter Next Door button. Bids are awarded once each week. Your bid must be the amount of the list price. You may submit your bid directly or utilize the services of a real estate broker. Winning bids are randomly selected by computer. The winning bid is posted each week on the web site where you made your bid.
In all cases, HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement.
The selected bidder may purchase the property at a 50 percent discount from the list price. For example, if a HUD home is listed for $100,000, a participant may buy it for $50,000. To make a HUD home even more affordable, you may apply for an FHA-insured mortgage with a down payment of only $100 and you may finance all closing costs.
If the home you want to purchase needs repairs, you may be eligible for an FHA rehabilitation mortgage. The FHA 203(k) mortgage program helps homebuyers buy a home and have enough money to rehabilitate or repair it. Repairs must cost more than $5,000. The cost of the repairs and the mortgage are combined into a single monthly payment. Consider FHA’s 203(b) program if needed repairs are under $5,000. FHA also has a new Streamlined 203(k) program which may be useful.
Discuss these financing options with your lender.
Because homes sold through the FND program are located in Revitalization Areas there may be additional assistance from state or local government sources. Local or state governments want to encourage families and businesses to move into Revitalization Area neighborhoods. Contact your state government housing office or local municipal government and request information on assistance for homebuyers.
Information is available on the Good Neighbor Next Door Loan Servicing page.