Law Enforcement Officers, Pre-Kindergarten through 12th grade Teachers, Firefighters and Emergency Medical Technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return, borrowers must commit to live in the property for 3 years as their sole residence.
- 30 year fixed and 15 year fixed loan terms
- Minimum $100 down
- Closing costs may be financed
How a borrower participates in the Good Neighbor Next Door Program
- The borrower checks the listings for their particular state/area:
- The borrower follows HUD's instructions to submit their interest in purchasing a specific home.
- Borrowers must offer the exact HUD list price when bidding on any GNND property. They will then receive a 50 percent discount off of that list price.
- If more than one person submits on a single home, a selection will be made by random lottery.
- A sales contract is accepted by HUD.
- The sales contract must indicate "Good Neighbor Next Door" to obtain the $100 down payment feature.
- HUD requires that the borrowers sign a second mortgage note for the property discount amount. No interest payments are required on this "silent second" provided that they fulfill the three-year occupancy agreement.
Get Today's Rates
Download our FHA Good Neighbor Guidelines
VP/ Regional Sales Manager