Officer Next Door Program FAQ

Common Questions and Answers:

1) Q. Can an officer purchase a property at the 50% discount outside of the jurisdiction where he/she has authority to make an arrest? 

A. Yes. Although it is desirable to have the officer buy within her/his jurisdiction, this is not a HUD requirement. 

2) Q. Can the officer wrap repair cost into their mortgage? 

A. Yes, HUD has a 203(k) rehab loan that allows the borrower to make one payment for both purchase and rehabilitation. 

3) Q. Is this program restricted to first-time home buyers? 

A. No, but the officer cannot own any other real property and the officer must reside in the HUD home as their primary residence during the owner-occupancy term. 

4) Q. Does the $100 down payment apply only to 203(k) program? 

A. No. The $100 down payment applies to all FHA-insured programs. 

5) Q. Is there really a 50 percent discount? 

A. Yes. This is the discount for properties in revitalization areas. 

6) Q. Are all the properties within a revitalization area zip code part of the revitalization area? 

A. It depends. It is up to the local HUD field office to determine if only certain neighborhoods within a zip code area meet the revitalization area definition. 

7) Q. What happens if an officer wants to purchase a property that is advertised to the public? 

A. If the property is: (1) located in a HUD-designated revitalization area, and (2) is unsold with no active offer (s) on it, then it may still be purchased by a law enforcement officer at the 50% discount. The officer must submit a competitive bid at 100% of the listing price, but will only have to qualify for 50%. The 50% discount will be applied at closing. 

8) Q. Will HUD provide a home warranty? 

A. No. All sales are as is, without warranty of any kind. 

9) Q. Can we offer multiple unit properties (e.g. 2-4 units) to the officers? 

A. No. Only single unit properties may be purchased for the OND program. 

10) Q. Can an officer offer less than the value established by the office? 

A. No. The contract sales price must be the value established by the office. 

11) Q. May the HUD office require an officer to provide a pre-qualification letter? 

A. Yes.  

12) Q. If we have more than one officer interested in the same property, can we hold a back-up offer? 

A. Yes. 

13) Q. Will the officer be required to pay an earnest money deposit when submitting contract for a HUD/REO property? 

A. No, it's the same as a direct sale. 

14) Q. Will HUD pay all or part of the closing costs? 

A. Yes, but the amount is deducted from the total discount. Example: The purchase price is $80,000 and the officer requests closing costs of $2,000. With the 50% discount = $40,000, at closing the officer's discount is reduced to $38,000. 

15) Q. Can the officer sell the property for whatever the value is after the 3 years and keep any profit? 

A. Yes. 

16) Q. What happens to an officer, who is separated from the department within 3 years of the purchase? 

A. Nothing. However he/she must be good standing with the department when the contract is signed. 

17) Q. Some agencies have other home buying programs. Can the Officer Next Door program work alongside these? 

A. Yes, along as our guidelines are not violated in supporting these other programs. 

18) Q. Is there a certain length of time an officer is required to stay in the house they purchase? 

A. Officers must live in the property as their primary residence for at least three years after purchase.