The Good Neighbor Next Door (GNND) sales program is part of the government’s Affordable Homeownership Directive to revitalize American neighborhoods and communities.
Unlike other first-time home buyer programs and grants that any buyer can access, Good Neighbor Next Door focuses on community contributors like teachers, firefighters and law enforcement personnel who work where they live.
This article discusses the Good Neighbor Next Door sales program, which home buyers are eligible to use it, and how a Good Neighbor Next Door mortgage works.
What is The Good Neighbor Next Door (GNND) Program?
Good Neighbor Next Door is a government-supported housing program. It sells homes to teachers, firefighters, law enforcement officers and emergency medical technicians (EMTs) at half price and allows $100 down payments.
Created by the US Department of Housing and Urban Development (HUD), the GNND program revitalizes communities.
mortgage
prior approval
in minutes
get pre-approved
How Does The Good Neighbor Next Door Program Work?
HUD’s Good Neighbor Next Door program provides homes for law enforcement officers, teachers, firefighters, and emergency medical technicians at 50% off the listing price. In exchange for the reduction in value, home buyers commit to living in their home as a principal residence for at least thirty-six months.
First-time home buyers can use Good Neighbor Next Door to purchase their first home, and the program is also available to renters who haven’t owned a home in the last 12 months.
To qualify for the Good Neighbor Next Door Sales program, home buyers must meet six eligibility standards.
You must have a full-time, eligible job
Eligible home buyers must be working full time as a classroom teacher, law enforcement officer, firefighter, or emergency medical technician. They must certify their intention to remain in their field of work for at least 12 months following purchase.
Part-time employees such as substitute teachers and volunteer firefighters are not eligible.
You must buy a single-family home within a HUD revitalization area
Not all homes for sale are eligible for the Good Neighbor Next Door sales program. Eligible properties are limited to single-family, reclaimed homes in neighborhoods where income levels and home ownership rates are lower than the area average.
HUD maintains a list of available GNND homes on its website. Homes are sold as is. Repairs are the responsibility of the home buyer.
You must follow the program rules to bid on the Good Neighbor house
The Good Neighbor Next Door Sales Program requires buyers to submit offers through a real estate agent. Real estate agents must be registered with the US Housing and Urban Development website, and offers must be made through the HUD HomeStore website. All offers are subject to a 30-day waiting period, and all offers must be accompanied by a small earnest money deposit.
You must buy the home as your main residence
Good Neighbor Next Door is a community revitalization program, so the government requires that buyers use their new home as a primary residence. Home buyers cannot use Good Neighbor Next Door to buy a second home or rental property.
You must not have owned the home within 12 months of making the offer
The Good Neighbor Next Door Sales Program is available to home buyers who have not owned a home in the past year and have not previously used the Good Neighbor Next Door Program. Co-buyers must meet the same criteria.
You have to prove your residence for the next 3 years
Home buyers must agree to make their Good Neighbor Next Door home their sole residence for three years from the date of purchase. Buyers must certify their occupancy annually.
Early exit home buyers will have to repay the unused portion of their 50% discount. Military members called to active duty are exempt.
To pre-qualify for a mortgage, check out today’s rates.
Who Qualifies for The Good Neighbor Next Door Program
The U.S. Department of Housing and Urban Development makes its Good Neighbor Next Door sales program available to home buyers in four occupations: law enforcement, education, firefighting and emergency medical services.
Police and Law Enforcement
A home buyer qualifies for Good Neighbor Next Door as a law enforcement officer if three conditions are met:
- The home buyer is a full-time employee of a law enforcement agency
- Home buyer is sworn to uphold and arrest for violation of law
- The home buyer serves the area in which the home is located
Law enforcement agencies may be federal, state, local, or tribal, including the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, and other US territories.
Law enforcement officers from a county, parish or political subdivision are also eligible for Good Neighbor Next Door.
Get pre-approved now to buy a HUD home.
Fire Fighting
The Good Neighbor Next Door Sales Program is available to firefighters purchasing a home that:
- There are firefighters for the government-supported fire department.
- Work at least 40 hours per week for the fire department
- serve the local area in which the home is located
Firefighters can work for federal, state, local, or tribal governments and can serve in any number of firefighting roles, including technician, engineer, inspector, and ranger.
Part-time employees are ineligible for the Good Neighbor Next Door Sales Program.
Get pre-approved now.
Emergency Medical Technician (EMT)
Emergency medical technicians who work with fire departments, hospitals and ambulatory services can purchase HUD homes through Good Neighbor Next Door. To qualify, an EMT must meet the following criteria:
- Must work for an Emergency Medical Services responder unit
- Must work at least 40 hours per week as an EMT
- Must serve the local area in which the home is located
EMTs may work for federal, state, local, or tribal governments and may work in any EMT-related role, including a paramedic, an ambulance driver, and a first responder.
Get pre-approved and check your eligibility.
school teacher
School teachers qualify for the Good Neighbor Next Door Sales program if the following conditions are met:
- A teacher is a full time employee of a school
- Teachers teach from pre-kindergarten to grade 12
- Teacher serves students in the area in which the home is located
Teachers at any state-accredited public or private school are eligible for Good Neighbor Next Door. Administrators, coaches and other school employees are not eligible for the program.
Get pre-approved for a mortgage loan.
Good Neighbor Next Door Mortgage to Buy
Home buyers can finance their Good Neighbor Next Door home with any government- or privately-backed home loan, including low and no down payment mortgages.
First-time home buyers may qualify for tax credits and local down payment assistance.
Get pre-approved to check your eligibility.
FHA mortgage
FHA mortgages are the default low-down payment mortgages for Good Neighbor Next Door home sales. Home buyers using FHA financing with Good Neighbor Next Door can make a $100 down payment instead of the FHA’s standard 3.5 percent down payment. The minimum required credit score is 500.
fha 203k construction loan mortgage
Home buyers can use an FHA 203k construction loan to finance the purchase and renovation of a HUD home. Up to $35,000 is available for major and minor repairs, including a new roof, new HVAC, and yard repairs.
FHA 203k-backed purchases with a credit score of 580 or higher are eligible for a $100 down payment.
home ready mortgage
HomeReady has conforming mortgage loans for as little as 3% for home buyers in low- to moderate-income neighborhoods. HomeReady offers lower mortgage rates and more straightforward qualifications than standard conforming mortgage loans.
HomeReady enforces a minimum credit score of 620. Buyers with a credit score of at least 680 receive a discount on the interest rate and mortgage insurance rate.
Home Potential Mortgage
Home Possible has 3% less, conforming mortgage loans for home buyers in low- to moderate-income neighborhoods. Like HomeReady, Homes Possible offers lower mortgage rates and lower qualifications than other conforming mortgage loans. Home Possible requires a minimum credit score of 660.
usda mortgage
USDA mortgages are no-down payment mortgages backed by the US Department of Agriculture for homes in rural and less dense suburbs. USDA loans offer low mortgage rates and affordable mortgage insurance. USDA loans require a minimum credit score of 580.
VA mortgage
VA mortgages are 100% mortgages for military veterans, active duty members, and surviving spouses. The Department of Veterans Affairs supports VA loans. VA loans never require mortgage insurance and a 620 credit score is required for Good Neighbor Next Door home buyers.
Frequently Asked Questions About the Good Neighbor Next Door Program
Are all HUD homes next door eligible for Good Neighbor?
No, only certain HUD homes qualify for Good Neighbor Next Door. HUD homes must also be located in a HUD revitalization area to qualify.
What is HUD Revitalization Zone?
Revitalization areas are neighborhoods with lower homeownership rates and incomes than the area average. Revitalization areas are defined in the National Housing Act and are identified from time to time by HUD.
How do I make a good neighbor next door offer?
Home buyers must first be pre-approved for a mortgage, then search for Good Neighbor Next Door homes for sale on the government’s official website. Once a buyer has identified a home for sale, a real estate agent can submit a bid on their behalf.
Can I Buy Good Neighbor Next Door House Without Real Estate Agent?
No, the U.S. Department of Housing and Urban Development requires home buyers to work with HUD-registered real estate agents when purchasing HUD homes for sale.
Can I buy a home through the Good Neighbor Next Door program if I am not a first time home buyer?
Good Neighbor Next Door is available to all home buyers who have not owned a home in the past twelve months. First time home buyers and repeat home buyers are eligible.
Can I use Good Neighbor Next Door more than once?
Home buyers can use the Good Neighbor Next Door program only once.
Can Home Buyers Combine Down Payment Assistance Programs With the Good Neighbor Next Door Sales Program?
Yes, first time home buyers can access down payment assistance and cash grant programs as part of their Good Neighbor Next Door home purchase.
Do I Need to Take Homeowner Education Classes to Buy a Good Neighbor Home?
There is no homeowner education requirement for Good Neighbor Next Door. However, education is beneficial. First-time homeowners who complete homeowner education classes are less likely to default.
mortgage
prior approval
in minutes
get pre-approved
