Good Neighbor Next Door Loan - HUD BID Question
I'm in the market for a GNND HUD loan, which is exclusive to first responders and teachers. One caveat to know is that I can only offer the full listing price of the home, no more and no less.
When my HUD-broker is submitting a bid for a property, HUD automatically prefills box 6b that pays HUD's listing agent for the property at a 3% commission, however I can elect to remove the responsibility of HUD in box 6a to pay my listing broker by assuming that payment out of pocket.
The advantage of this, is the Net-To-Hud (7.) total at the end of the sale is higher, since HUD saves 3%.
The downside, is even if I offer full price for the home, I can't offer to pay the 6b costs, so the most I can offer is the listing price less 3%.
This puts me at an unfair disadvantage to acquire a HUD property, since other owner occupants can just offer the same price as me, and to pay the full closing costs and win the action, or just offer enough over me to make up for that difference.
Do any of you know a way I can increase the appeal of my offer to a HUD broker by increasing Net-to-HUD (7.) by any other means under the GNND loan requirements?
Thanks. Just trying to compete in such an aggressive market. I've included a sample of the bid offer page below for reference.
Typically there are only a handful of properties in the country that are eligible for the program. A quick search of states with the most Hud properties show none available currently
Another stumbling block is the property has to be in the exact area you work in. For example, a teacher has to find a property within their school district. Even one block over does not qualify.
On a HUD bid only the bid price, closing costs and selling agent commission can be modified. So yes you can pay your Broker outside of closing to increase your net to HUD by up to 3%
Quote from @Greg H.:
Typically there are only a handful of properties in the country that are eligible for the program. A quick search of states with the most Hud properties show none available currently
Another stumbling block is the property has to be in the exact area you work in. For example, a teacher has to find a property within their school district. Even one block over does not qualify.
On a HUD bid only the bid price, closing costs and selling agent commission can be modified. So yes you can pay your Broker outside of closing to increase your net to HUD by up to 3%
You mentioned "Even one block over does not qualify" where are you able to find this information concerning distance from place of work?
Quote from @Rosston Smith:
Quote from @Greg H.:
Typically there are only a handful of properties in the country that are eligible for the program. A quick search of states with the most Hud properties show none available currently
Another stumbling block is the property has to be in the exact area you work in. For example, a teacher has to find a property within their school district. Even one block over does not qualify.
On a HUD bid only the bid price, closing costs and selling agent commission can be modified. So yes you can pay your Broker outside of closing to increase your net to HUD by up to 3%
You mentioned "Even one block over does not qualify" where are you able to find this information concerning distance from place of work?
I have been buying HUD homes for 30+ years as an investor and representing clients as a Broker. The last GNND client I had was the winning bidder and the bid was cancelled because the property was in the neighboring school district literally a block outside. Again, the property has to be classified as eligible and very few about 1% qualify. I see not one in the entire US at this time
Quote from @Greg H.:
Quote from @Rosston Smith:
Quote from @Greg H.:
Typically there are only a handful of properties in the country that are eligible for the program. A quick search of states with the most Hud properties show none available currently
Another stumbling block is the property has to be in the exact area you work in. For example, a teacher has to find a property within their school district. Even one block over does not qualify.
On a HUD bid only the bid price, closing costs and selling agent commission can be modified. So yes you can pay your Broker outside of closing to increase your net to HUD by up to 3%
You mentioned "Even one block over does not qualify" where are you able to find this information concerning distance from place of work?
I have been buying HUD homes for 30+ years as an investor and representing clients as a Broker. The last GNND client I had was the winning bidder and the bid was cancelled because the property was in the neighboring school district literally a block outside. Again, the property has to be classified as eligible and very few about 1% qualify. I see not one in the entire US at this time
How can you see not one? There have been roughly four listed every single week for the past six months in Georgia. There are six listed right now. I posted the link below.
https://www.hudhomestore.gov/L...
Quote from @Rosston Smith:
Quote from @Greg H.:
Quote from @Rosston Smith:
Quote from @Greg H.:
Typically there are only a handful of properties in the country that are eligible for the program. A quick search of states with the most Hud properties show none available currently
Another stumbling block is the property has to be in the exact area you work in. For example, a teacher has to find a property within their school district. Even one block over does not qualify.
On a HUD bid only the bid price, closing costs and selling agent commission can be modified. So yes you can pay your Broker outside of closing to increase your net to HUD by up to 3%
You mentioned "Even one block over does not qualify" where are you able to find this information concerning distance from place of work?
I have been buying HUD homes for 30+ years as an investor and representing clients as a Broker. The last GNND client I had was the winning bidder and the bid was cancelled because the property was in the neighboring school district literally a block outside. Again, the property has to be classified as eligible and very few about 1% qualify. I see not one in the entire US at this time
How can you see not one? There have been roughly four listed every single week for the past six months in Georgia. There are six listed right now. I posted the link below.
https://www.hudhomestore.gov/L...
So as I stated not all HUD properties are available for the program. Go to the page from my link below and click on the GNND link(middle left) and it will show that there are zero properties in the entire country currently available for this particular program. Even pre-covid when there were 1000 or so HUD properties available at a given time, less than a handful would be GNND eligible
Quote from @Greg H.:
Quote from @Rosston Smith:
Quote from @Greg H.:
Quote from @Rosston Smith:
Quote from @Greg H.:
Typically there are only a handful of properties in the country that are eligible for the program. A quick search of states with the most Hud properties show none available currently
Another stumbling block is the property has to be in the exact area you work in. For example, a teacher has to find a property within their school district. Even one block over does not qualify.
On a HUD bid only the bid price, closing costs and selling agent commission can be modified. So yes you can pay your Broker outside of closing to increase your net to HUD by up to 3%
You mentioned "Even one block over does not qualify" where are you able to find this information concerning distance from place of work?
I have been buying HUD homes for 30+ years as an investor and representing clients as a Broker. The last GNND client I had was the winning bidder and the bid was cancelled because the property was in the neighboring school district literally a block outside. Again, the property has to be classified as eligible and very few about 1% qualify. I see not one in the entire US at this time
How can you see not one? There have been roughly four listed every single week for the past six months in Georgia. There are six listed right now. I posted the link below.
https://www.hudhomestore.gov/L...So as I stated not all HUD properties are available for the program. Go to the page from my link below and click on the GNND link(middle left) and it will show that there are zero properties in the entire country currently available for this particular program. Even pre-covid when there were 1000 or so HUD properties available at a given time, less than a handful would be GNND eligible
When you click the "Good Neighbor next door" link, you then proceed to fill out the location information below and click search. Its not going to display all of the properties available in the entire country just by clicking the "Good Neighbor Next Door" link. You have to specify a specific state or zip code. There's plenty of properties available.
Quote from @Rosston Smith:
Quote from @Greg H.:
Quote from @Rosston Smith:
Quote from @Greg H.:
Quote from @Rosston Smith:
Quote from @Greg H.:
Typically there are only a handful of properties in the country that are eligible for the program. A quick search of states with the most Hud properties show none available currently
Another stumbling block is the property has to be in the exact area you work in. For example, a teacher has to find a property within their school district. Even one block over does not qualify.
On a HUD bid only the bid price, closing costs and selling agent commission can be modified. So yes you can pay your Broker outside of closing to increase your net to HUD by up to 3%
You mentioned "Even one block over does not qualify" where are you able to find this information concerning distance from place of work?
I have been buying HUD homes for 30+ years as an investor and representing clients as a Broker. The last GNND client I had was the winning bidder and the bid was cancelled because the property was in the neighboring school district literally a block outside. Again, the property has to be classified as eligible and very few about 1% qualify. I see not one in the entire US at this time
How can you see not one? There have been roughly four listed every single week for the past six months in Georgia. There are six listed right now. I posted the link below.
https://www.hudhomestore.gov/L...So as I stated not all HUD properties are available for the program. Go to the page from my link below and click on the GNND link(middle left) and it will show that there are zero properties in the entire country currently available for this particular program. Even pre-covid when there were 1000 or so HUD properties available at a given time, less than a handful would be GNND eligible
When you click the "Good Neighbor next door" link, you then proceed to fill out the location information below and click search. Its not going to display all of the properties available in the entire country just by clicking the "Good Neighbor Next Door" link. You have to specify a specific state or zip code. There's plenty of properties available.
I take it back looking again as Maryland is only a sliver on the map. This is the only one in the country currently
https://www.hudhomestore.gov/L...
You will see it is in the Lottery Period(Where GNND) properties will be. Put you cursor over the ? and you will see "GNND bidders only". Again GNND properties are extremely rare. All Hud listings are not eligible. I buy HUD properties for a living and know the system inside and out. This program seems fantastic but rarely rarely happens
Quote from @Greg H.:
Quote from @Rosston Smith:
Quote from @Greg H.:
Quote from @Rosston Smith:
Quote from @Greg H.:
Quote from @Rosston Smith:
Quote from @Greg H.:
Typically there are only a handful of properties in the country that are eligible for the program. A quick search of states with the most Hud properties show none available currently
Another stumbling block is the property has to be in the exact area you work in. For example, a teacher has to find a property within their school district. Even one block over does not qualify.
On a HUD bid only the bid price, closing costs and selling agent commission can be modified. So yes you can pay your Broker outside of closing to increase your net to HUD by up to 3%
You mentioned "Even one block over does not qualify" where are you able to find this information concerning distance from place of work?
I have been buying HUD homes for 30+ years as an investor and representing clients as a Broker. The last GNND client I had was the winning bidder and the bid was cancelled because the property was in the neighboring school district literally a block outside. Again, the property has to be classified as eligible and very few about 1% qualify. I see not one in the entire US at this time
How can you see not one? There have been roughly four listed every single week for the past six months in Georgia. There are six listed right now. I posted the link below.
https://www.hudhomestore.gov/L...So as I stated not all HUD properties are available for the program. Go to the page from my link below and click on the GNND link(middle left) and it will show that there are zero properties in the entire country currently available for this particular program. Even pre-covid when there were 1000 or so HUD properties available at a given time, less than a handful would be GNND eligible
When you click the "Good Neighbor next door" link, you then proceed to fill out the location information below and click search. Its not going to display all of the properties available in the entire country just by clicking the "Good Neighbor Next Door" link. You have to specify a specific state or zip code. There's plenty of properties available.
I take it back looking again as Maryland is only a sliver on the map. This is the only one in the country currently
https://www.hudhomestore.gov/L...
You will see it is in the Lottery Period(Where GNND) properties will be. Put you cursor over the ? and you will see "GNND bidders only". Again GNND properties are extremely rare. All Hud listings are not eligible. I buy HUD properties for a living and know the system inside and out. This program seems fantastic but rarely rarely happens
OKAY! I see what you're saying now! So my question is, if it doesn't say "GNND Participants only" can you still use GNND if you win the auction? For example, on a random property listed below its for OO, NP, and Gov Agencies only. Wouldn't GNND still be possible w/ one of these homes?
I appreciate your time.
Unfortunately not you cannot. It has to be designated as such. Like I said, there are very few of these per year and they are usually located in less than desirable areas