Through what special programs does HUD offer discounts on HUD Real Estate Owned (REO) Properties?

HUD offers discounts on the purchase of eligible HUD Real Estate Owned (REO) properties through HUD’s Special Programs:
 
National First Look Program
Participating Neighborhood Stabilization Program (NSP) grantees may purchase HUD REO Properties in NSP-designated areas for up to a 15% discount off the list price.
 
Good Neighbor Next Door
The Good Neighbor Next Door (GNND) Sales Program permits an Owner-Occupant Borrower who is a full-time law enforcement officer, teacher, firefighter, or emergency medical technician meeting HUD requirements, to purchase designated single-unit HUD REO Properties in Revitalization Areas at a discount of 50% off the list price.
 
Direct Sales
Governmental Entities and HUD-approved Nonprofits may purchase HUD REO Properties with up to a 30% discount off the list price.
 
Bulk Sales
Governmental Entities or HUD-approved Nonprofits may receive a discount on properties HUD has elected to sell as part of a bulk sale.
 
Dollar Homes – Government Sales Program
Governmental Entities may purchase certain HUD REO Properties for $1 each, plus closing costs.

Discounts are available on select HUD-owned properties and restrictions apply.

For additional information please contact the Asset Manager with jurisdiction over the property.  To locate contact information for the Asset Manager please visit the HUD Homestore website at https://www.hudhomestore.com/ and click “Help” in the gray tool bar.
 
For policy information see Handbook 4000.1 Section IV.B.2.f. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-03476