This program is only for pre K-12 teachers, firefighters, law enforcement, EMTs. These are people that are considered a valuable asset to the revitalization of neighborhoods so they are given special consideration. If you agree to live in the home for 3 years as your main residence, then you can qualify for a discount of 50% off a homes price. This program is only available in areas that are considered revitalization areas which in most cases are run down older areas of town that most likely have a higher crime rate. Even so, this is a great deal.

The way this program works is that the FHA has you sign a second mortgage for the 50% off amount and if you meet the three year agreement contract obligation then this mortgage is voided and you are not liable for it in anyway. They do have some very minor safeguards in place such as mailing a yearly letter to the property which the homeowner then has to return, if the letter isn’t returned then someone visits the house in person to make sure it is being used as a primary home. If you fail to comply with the Good Neighbor Next Door agreement then you may be financially responsible for the full price of the house which may be the least of your problems since criminal charges may also be filed against you.

Program for Public Housing Resident

In some instances, HUD may sell public housing to people who are HUD renters, to qualify for this program you need to contact your local Public Housing Authority (PHA). In most cases you need to enroll in the Homeownership Voucher Program which is a program to help low income people with mortgage payments and homeownership expenses. In order to qualify for the Homeownership Voucher Program you much meet minimum income requirement, must not have owned a home in the last 3 years, be employed (unless disabled), and go through some financial counseling classes. This program offers financial help with mortgage payments, utilities, maintenance and repairs.

Indian Home Loan Guarantee Program (Section 184)

This program is only available to members of a federally recognized Indian tribe or other native peoples such as Alaska’s Inuit population. It allows qualified individuals to apply for HUD assistance in obtaining financing to build homes both on and outside of Indian Reservations.

The goal of this FHA program is to help Native Americans become homeowners since they traditionally have been under represented minority. If you qualify for a section 184 loan, you could qualify for a loan for over $50,000 with as little as 2.25% down or 1.25% down for a loan of less than $50,000. You would not have to pay any mortgage insurance and the expenses of a loan guarantee which totals 1% of the loan amount can be bundled into the mortgage and paid out over the duration of the home loan. These loans can be obtained for buying an existing home, building a home, rehabbing a home, or refinancing a current home.

Neighborhood Gold Program

This FHA program helps buyers purchase homes with no money down. If the seller agrees to certain terms, the buyer could get 3% – 10% of the selling price for the down payment and other closing expenses. The seller has to pay 1% of the loan amount (up to $1,000) to take part in the Neighborhood Gold Program but this can be paid by the seller and then deducted from the cash grant. It’s necessary for the seller to agree to participate in this program so that must be worked out with the seller before any purchase offer is made.

In addition to the no money down offer, another benefit of this plan is that you are automatically enrolled in the Involuntary Unemployment Mortgage Program which gives you up to $1500 a month to pay your mortgage if you should lose your job involuntarily.

Access 2000 Loan Program (only available in CA and NV)

In order to qualify for this program you must meet the income requirements for the area you are buying in but you do not have to be a first time home buyer. This program is designed to allow people to buy houses with no money down and doesn’t require the seller to be involved. The way it works is that the buyer is allowed to get a first mortgage with an FHA loan for 103% of the homes value then Access 2000 gives the buyer a second mortgage for 6% of the homes price. The 6% provided by Access 2000 is used as the down payment and the extra 3% in the loan for home pays for the closing costs. The amount of the overall loan is determined by the county you are buying in, but the loan limits only go up to $239,250.