Prohibited from owning another property for 3 years

[Account Closed]

Under the Good Neighbor Next Door (for teachers, police, firefighters, and EMTs) program from HUD, you take on a second "silent" mortgage for the 50% discount off the appraised value, and must OO for 3 years to receive the full discount. This is all listed in the website. One thing not mentioned until you see your contract package is a clause prohibiting the participant from owning ANY other property other than the GNND property for 3 years from the date of purchase, lest the discount be called (prorated).

It sounds downright unpatriotic prohibiting ordinary folks from investing in real estate like that. These homes are also on a lottery system. If the government wants to give something away, why not just give it away? What's the point of all the strings?

[Albert Hasson]

The point of these programs is to get folks, who otherwise might have difficulty buying, into a home. It's not designed for real estate investors or those that aspire to be RE investors. For most participants, having to OO and not buy any other RE for three years is a small price to pay. Nothing unpatriotic about it, if you don't want to participate then don't participate.