I am a teacher in Hillsborough County, Florida. I'm interested in purchasing a home on the Good Neighbor Next Door program, however, I'm concerned about the approval process for the loan. I understand that I'll be purchasing an approved home on the list at 50% off. Do I need to be approved for the full list price of the home, or do I just need to be approved for the amount I'll be paying? To clarify, if the house I want is listed at $170k, do I need to get approved for a loan for $170k or do I only need to be approved for half of that?
Thanks in advance!
The house itself has to be in the Good Neighbour Next Door program to qualify.
You need to contact an FHA lender and qualify for the an FHA loan. The 50% second loan is a silent second mortgage with no payments for the 3 year duration to which you must owner occupy. Since there are no payments the second shouldn't factor into your DTI ratio. If you move out or sell the property prior fulfilling the 3 year obligation the prorated amount of the second mortgage becomes due in full.
I will message you with a Florida loan officer that can answer your FHA questions.
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