Good Neighbor Next Door Program

Consider the Good Neighbor Next Door (GNND) program if you work in a specific public sector position and need help purchasing a home. This program may be able to provide you a significant discount on your home. It's crucial to pay a price that matches your budget while looking for a home. On your subsequent home purchase, you might be able to save up to 50%.

What is the Good Neighbor Next Door Program ?

Good Neighbor Next Door Program offered by the U.S. Department of Housing and Urban Development (HUD) that allows individuals who work in specific public service jobs to buy qualified homes at a discount. The GNND program is also sometimes referred to as Officer Next Door program. You can purchase HUD properties in revitalization areas at a 50% discount if you are eligible for Good Neighbor Next Door Program.

A single-family home acquired by the HUD as a result of foreclosure and first purchased with an FHA loan is referred to as a HUD home. The purpose of GNND is to support local economies and promote home-ownership. The Good Neighbor Next Door Program might be able to assist you with your home purchase if you are a firefighter, law enforcement officer, emergency medical technician or teacher in a revitalization area.

You can express interest in the home if you meet the program's requirements. You can purchase the home at a 50% discount after HUD confirms that you are eligible. However, if more than one qualified buyer applies through the program for the same house, the decision of who will be given the chance to complete the purchase is made by random lottery.

Key Facts of Good Neighbor Next Door Program

  • GNND Program helps teachers, law enforcement officer, firefighters and emergency technicians buy eligible properties for a steep discount.
  • If you meet the requirements, the Good Neighbor Next Door Program enables you to purchase a home in a revitalization area.
  • Through the Good Neighbor Next Door program, qualified home buyers can get a 50% discount on a HUD home.
  • For three years, you must remain in the home, otherwise you will be required to repay the discounted sum.

How Does the Good Neighbor Next Door Program Work ?

The houses up for sale are foreclosures that were financed by FHA mortgages, which are mortgages that the Federal Housing Administration insures. The U.S. Department of Housing and Urban Development, or HUD, acquires ownership of the properties following a foreclosure and puts them up for sale.

All of the homes featured in Good Neighbor Next Door are situated in areas deemed "revitalization areas" in order to increase home ownership opportunities. HUD collaborates with local governments across the nation to identify revitalization areas in communities with high foreclosure rates, low home ownership rates, and relatively low median household incomes.

Only residences in communities referred to as revitalization regions that are economically struggling are available for purchase if you want to take part in GNND. Although anyone can buy a HUD home, those who take part in the GNND program will save 50% off the advertised price. Due to the fact that these homes are typically priced to sell, the discount allows you to purchase one for an absurdly low sum.

Who is Eligible for Good Neighbor Next Door Program ?

In order to qualify for GNND program, you must be or have been a law enforcement officer, teacher, emergency medical technician or firefighter, who is full-time employed and be a prospective or current homeowner.

You must work in one of the following professions to qualify for the Good Neighbor Next Door program :

1) Teachers :
Teachers who work for a grades pre-K through 12, state-accredited public or private institution.

2) Firefighters : 
Employees of the fire departments of the federal, state, local, or tribal.

3) Law enforcement officers : 
Law enforcement officers who work for a federal, state, local, or tribal law enforcement agency.

4) Emergency medical technician : 
EMTs who work for an emergency medical service responder unit that is federal, state, local or tribal.

You must be willing to commit to making the house your sole place of residence for the next three years. You may have 30, 90, or 180 days to move into the property, depending on the circumstances. In addition to belonging to one of the eligible professions, you are probably qualified to participate if you can meet these requirements.

Additionally, when you apply for the program, you cannot already be the owner of residential property. A year cannot have passed since you last owned a home before making this kind of bid to buy one. Your new home must serve as your primary abode. The Good Neighbor Next Door program has neither a minimum nor a maximum income requirement. You merely need to comply with the conditions of the mortgage financing program in which you're enrolled.

The good news is that if you move into a qualifying home and decide to change careers, you won't have to give up the house. To avoid making payments on the discounted portion of the home purchase price, you simply need to finish the necessary occupancy time.

Good Neighbor Next Door Program Mortgages

Getting pre-approved for a mortgage is essential when looking for any kind of home. An offer from a lender to grant you money up front and on particular terms is known as a mortgage pre-approval. When making an offer, you should have the pre-approval handy.

As long as you match the lender's standards, you can use any sort of mortgage to purchase a GNND home, but using an FHA loan has particular advantages. Even $100 can be used as the minimal down payment requirement, and closing costs can be financed. 3.5% down is often the required minimum for an FHA loan. Another option is to use a loan for renovations, such as an FHA 203(k), which includes the cost of the necessary repairs in the mortgage.

A lender's mortgage covers half of the home's asking price. The other half of the cost is financed by a second mortgage obtained through HUD. As long as the buyers adhere to the program's guidelines, there are no payments due on the second mortgage. After three years of habitation, the buyer is liberated from the second mortgage.

How to Apply for Good Neighbor Next Door Program?

On the HUD Homestore website, you can conduct a search for properties up for sale through the Good Neighbor Next Door program. On view available homes, first click on the Good Neighbor Next Door link in the box to the left of the map. Then, click on a dark-blue state. There are presently no houses available through the program in the light blue states. Click on the property case number to view images and details about a particular house, including its square footage, number of rooms, and the year it was built.

If you locate a property you want to buy, you'll have to act quickly because you only have seven days to submit an offer because the inventory of homes changes every week and they are sold "as is." You must collaborate with a real estate agent who is a certified HUD broker to do this. You can use a tool on the HUD Homestore website to locate one close to you. The broker electronically files a bid for the entire list price, and HUD then applies the 50% rebate. The buyer is chosen by lottery if there are multiple offers.

You must follow the instructions on HUD's Good Neighbor Next Door website in order to participate.

In your state, look for qualified properties. To find out whether any properties are listed in your area, use the HUD home listing tool.

Steps for Buying a Good Neighbor Next Door Home

The next step is to apply if you fulfill the program's qualifying requirements. The steps you must complete in order to proceed are listed below.

1) Go HUD Home Store :
The HUD Home Store should be your first stop if you're considering GNND. You can then start looking at your workplace's redevelopment areas.

2) Locate A HUD Approved Agent :
When you've discovered a house you want to purchase, you must speak with a HUD-approved broker. The listing often includes this information.

3) Make A Bid :
There is a 7-day bidding process for all HUD homes. You will also need to provide earnest money with your bid to demonstrate your commitment to purchasing the property.

4) Acquire A HUD Silent Second Mortgage :  
If your bid is successful, you will use HUD to obtain a secret second mortgage. You won't be responsible for the second mortgage payment as long as you meet the occupancy conditions. You will be discharged from the second mortgage after three years of residence in the property.

5) Reside At Home :
When you buy a house through GNND, you consent to stay there for a minimum of three years. Until you've met your standards, you must confirm that the house is your principal residence each year.

Advantages of Good Neighbor Next Door Program

There are many advantages to purchasing a home through GNND if you are eligible.

1) Equity of home :
The silent second mortgage is eliminated once the 3-year owner-occupancy requirement has been satisfied. Any remaining home equity then belongs to the homeowner.

2) Discount :
HUD homes are being sold at substantial discounts and are already priced to sell. However, if you buy the house through GNND and stay in it for at least three years, you'll get an additional 50% discount.

3) Closing Costs :
Closing expenses are needed when you close on your house and typically range from 1% to 5% of the overall cost of the property. However, GNND buyers can use their FHA mortgage to pay for their closing expenses.

4) Future Investment Property :
Once you’ve lived in the home as your primary residence for 3 years, you’re free to leave. The house might be sold or kept as a rental building.

Good Neighbor Next Door Program Contact

You can email or call the FHA Resource Center if you need assistance or have questions about GNND. The Federal Housing Administration (FHA) can be reached by utilizing one of the following methods :
  • Visit : The FHA Resource Center
  • Call : 1-800-CALL-FHA (1-800-225-5342) or via Federal Information Relay Service (w/TTY) 1-800-877-8339
  • Email :
  • To contact a HUD Housing Counseling agency, click here
  • To read more about GNND program, click here

Frequently Asked Questions

What is a revitalization area?
An region identified by HUD and approved by Congress under the National Housing Act is known as a revitalization area. The amount of FHA mortgage foreclosures, the home ownership rate, and household income all play a role in determining these locations.

How do I enter my name into the lottery drawing?
Sign up for property notification in your area and a local GNND preferred Agent will contact you. On the map, look for the local agent that is closest to you. Your name can only be entered into the lottery drawing by a registered Agent. Please call Bruce toll-free at (844) GNND-HUD (466-3483) if there isn't an Agent in your area.

What amount of earnest money should I put down?
Earnest money must be included with your purchase paperwork after you've been given the property. Earnest money must be certified funds in the form of a cashier's check, money order, or 1% of the appraised value. The lowest earnest money deposit is $500 for properties listed for less than $50,000, and the maximum is $2,000 for properties valued at more than $200,000.

Why should I sign up with GNND?
Homes from GNND are only accessible for seven days. A Good Neighbor Next Door home in your area will be notified to you via email and/or text message when it becomes available. Additionally, they offer you a local agent that is knowledgeable to guide you through the home-buying process.

Who can participate in the Good Neighbor Next Door Program ?
Law enforcement officers, teachers, firefighters, and emergency medical technicians who live in the same communities where they carry out their daily duties, are currently without a mortgage, and have not purchased a home for at least a year, are eligible for GNND homes. Additionally, neither you nor your spouse may have previously taken part in Officer Next Door or Teacher Next Door half price dwelling programs, the two forerunner programs to the GNND program.

How long do I have to live in the Good Neighbor Next Door home ?
To sell your GNND home without incurring a fee, you must reside in it for at least three years. For "IE" properties bought with FHA 203B financing, this period is prolonged by 30 days, and for "UI" houses bought with FHA 203K financing, it is extended by 180 days.

After selling my first GNND property, may I reapply for the lottery in a year?
Your present spouse is ineligible as well, even though they weren't married to you when you received the home because this is a once-in-a-lifetime program. If you have bought a property through either of the two predecessor programs, Office Next Door or Teacher Next Door, you are also ineligible.

Do all HUD homes qualify for the GNND program?
No, Only a small number of HUD-purchased properties are eligible for the GNND program. Don't hold off until you find the ideal home or location. Always strive to seize the chance if a house comes up for sale that you can afford and fits your minimum housing requirements. After just three years, you can sell the house, maintain it as a rental, or continue to live in it as long as you like.

How can I win a HUD bid?
You should engage with a real estate agent who is knowledgeable with the bidding process if you intend to bid on a HUD home. They can provide you advice on how to bid in order to increase your chances of success without going overboard.

What are the benefits of Good Neighbor Next Door Program?
  • If you are eligible for the program, you can save 50% on the cost of a home.
  • If you utilize an FHA loan to buy the house, you can finance the closing fees and put as little as $100 down.
  • When you utilise a renovation loan, such as an FHA 203(k) loan, which allows you to borrow up to 110 percent of the home's appraised value to make improvements, you can roll your repair costs into the mortgage.
  • Wealth can be acquired quickly. "This has changed my life. This is like taking home the jackpot. Arrant declares, "This is money for retirement.
  • You'll contribute to a neighborhood's renewal, which might boost property values.