FAQs
Do I have to be a first time home buyer to take advantage of the GNND
program?
No, but you must not have owned a home in the past 12 months.
Where do I obtain financing for the home?
You secure a first mortgage through an FHA, VA, or conventional lender; HUD provides a silent second mortgage for the 50% discount.
What happens if no one enters the drawing?
If no GNND participants bid within the seven-day window, the home becomes available to the general public.
What does IN, IE, and UI mean?
IN (Insured) means the home meets FHA standards; IE (Insured with Escrow) requires minor repairs with escrow funds; UI (Uninsured) doesn’t meet FHA standards and needs significant repairs.
Should I get prequalified for a mortgage?
Yes, prequalification ensures you meet lender requirements for the 50% mortgage, streamlining the bidding process.
When does the drawing take place and when will I find out if I won?
The drawing occurs after the seven-day bidding window; HUD notifies winners shortly after, typically within a few days.
Should I look at every home that becomes available before I enter the drawing?
No, but review listings quickly and inspect properties of interest within the seven-day window, as inventory is limited.
What if I win a home and then change my mind about purchasing it?
You can withdraw, but you’ll lose your earnest money deposit, and you may be barred from future GNND lotteries for a period.
Can I enter the GNND lottery again in a year after selling my first GNND home?
No, you and your spouse are limited to one GNND purchase in your lifetime.
Who makes repairs and improvements to the homes?
Buyers are responsible, as GNND homes are sold as-is, though some may qualify for FHA 203(k) loans for repairs.
What are my chances of getting a home?
Chances are low due to limited inventory and high demand; success depends on the number of bidders and available homes. If one Teacher, one Firefighter and one Officer were all in the lottery drawing for the same home, everyone has an equal chance and 33% chance of winning.
What’s the minimum credit score for approval?
There’s no set minimum, but FHA loans typically require a 580 score for a 3.5% down payment, or 500 with 10% down.