GNND Teacher Buyer Boulder

1/2 off housing sale: GNND

The Good Neighbor Next Door (GNND) is a great program offered by HUD. This is an admirable program.  Buyers benefit from a fifty percent discount on the house.  GNND is very challenging in practice.  Only a couple of homes qualify of the vast majority listed for sale each week in the metro area.  The discount is created by a silent second loan. GNND is designed for teachers, emergency medical technicians, law enforcement officers and firefighters. The program’s goals are twofold – create affordable housing for community caregivers and improve/encourage renewal in neighborhoods that will benefit from revitalization.

The silent second loan in the Good Neighbor Next Door program has no interest and no payments. The second loan is forgiven after 36 months of owner occupied ownership. GNND homes can be paired with another solid program — FHA 203K loan program.

FHA 203K

The 203K allows for some improvements – required or elective – to be financed at the time of purchase. With both of these loan programs, it is important to have a sharp mortgage lender working hand in hand with you from the beginning of the process.

There are additional incentive programs for first time buyers. In Boulder there are several programs involving the Permanently Affordable Housing program.

Alphabet Soup of Loan Programs

Brian Crowder, Mortgage Lender at closing for one of Bob Gordon's buyer clients
Brian Crowder, Mortgage Lender

Additional opportunities include the Metro Mortgage Assistance program, CHFA, CHAC, HOAP and USDA loans.  Not all of these require the borrower to be a teacher. There is also the Mortgage Credit Certificate, which is a tax credit program.  It is important to work with a Realtor and mortgage professional that can inform you of the subtle differences in these programs.

You will want to look on HUD’s website about the Good Neighbor Next Door program and the City of Boulder’s Permanently Affordable site. And keep in mind, occasionally a builder will offer an incentive – a special offer so to speak – to teachers as an extra incentive when buying a new construction house. In summary, there are a lot of great programs out there for teachers and first time buyers. Give me a call to discuss your home buying needs. I’m available at 303-443-3334.

 

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