Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD’s Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.
How the Program Works
Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program. Properties are available for purchase through the program for five days.
How to Participate in Good Neighbor Next Door
Check www.HudHomeStore.com. Follow the instructions to submit your interest in purchasing a specific home. If more than one person submits on a single home a selection will be made by random lottery. You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD’s regulations for the program.
HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this “silent second” provided that you fulfill the three-year occupancy requirement.
The number of properties available is limited and the list of available properties changes weekly.
Eligible Participants
Teachers
- Full-Time
- Pre K – 12
- Employed at State-Accredited Public and Private Schools
- Serving Students From the Area Where the Home is Located
Police Officers
- Full-Time
- Employed by a Law Enforcement Agency of the Federal Government, a State, A Unit of General Local Government or an Indian Tribal Government
- Must be Sworn to Uphold and Make Arrests for Violations of Federal, State, Tribal County, Township or Municipal Law
Fire-fighters/ Emergency Responders
- Full-Time
- Employed by a Fire Department or Emergency Medical Services Responder Unit of the Federal Government, a State, A Unit of General Local Government or an Indian Tribal Government
- Serving the Area Where the Home Is Located
General Rules
- Helpful Q&A about GNND Program Click Here
- Earnest Money Is Required
- 1% of the List Price (No less than $500 and No More than $2,000)
- Up to 50% Discount
- Home Must be Within a HUD-Designated Revitalization Area
- Must “Bid” 100% of the List Price
- Offers Selected by Lottery Number – Not Net to HUD
- Cannot Own Other Residential Real Estate
- Must “Owner-Occupy” the House for 36 months.
- If Buyer Uses FHA Financing
- May Get Their Loan for $100 Down Payment
- May Finance the Cost of Reasonable and Customary Closing Costs
- Buyer Must Qualify for the list price (not just the discounted amount)
- Silent Second Mortgage will be Recorded
- Silent Second Mortgage Will be Reduced by 1/36th on the Last Day of Each Month of Occupancy
- HUD WILL NOTPAY COMMISSION OR CLOSING COSTS
- These items must be paid by the buyer
- May finance these items if the buyer uses FHA financing
- Commission will not show on the sales contract – use special addendum