About Good Neighbor Next Door

To make American communities stronger, the U.S. Department of Housing and Urban Development designed the Good Neighbor Next Door (GNND) programs to encourage firefighter, EMTs, police officers, and teachers to buy homes in low and moderate-income neighborhoods.  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.

To be eligible, firefighters, EMTs, law enforcement officers, and teachers must:
  • Be employed full-time.
  • Cannot own any other residential real estate
  • Agree to make the homes their sole residence for three years following the purchase.
  • Work in the areas in which the homes are located.
The 50 percent discount will be applied at closing. 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. 



FIREFIGHTER/EMT/OFFICER/TEACHER ELIGIBILITY

A Law Enforcement Officer is defined as an individual who is:
  • employed full time by a Federal, State, County or municipal government;
  • sworn to uphold, and make arrests for violations of, Federal, State, county, or municipal law; and
  • in good standing with the department.
A Teacher is defined as an individual who is:
  • employed full time by a a public school, private school, or Federal, State, county or municipal educational agency;
  • in good standing;
  • and holds a current State-level certification, as a classroom teacher or administrator in grades K through 12. 
A Firefighter/EMT is defined as an individual who is:
  • employed full time as a firefighter/emergency responder 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.
  • in good standing;
Furthermore, the purchaser may not own residential property for 1 year prior to offer submission and neither may the purchaser's spouse.  The purchaser, and his or her spouse, may not have previously participated in the program. Only one spouse may purchase the property.



ELIGIBLE PROPERTIES

Only single-family homes, condos and townhouses are eligible for GNND purchases.  Multifamily units are not eligible.   The number of properties available is limited and the list of available properties changes weekly.  Eligible  homes located are listed exclusively for sales through the GNND Sales program for five days. Winning bids are randomly selected by computer.

If no preliminary interest is received during the 5-day lottery period, the property will be made available for sale to the general public via the customary HUD competitive bid basis and the option to receive the fifty percent (50%) discount is no longer available. The fifty percent (50%) discount is available only during the initial lottery period.

  • GNND program teacher participants must certify that they are "employed by an educational agency that serves the school district/jurisdiction in which the home they are purchasing is located."
  • All GNND program participants are required to own and use their property as their SOLE residence for at least three (3) years.
  • All GNND program participants are required to execute a second mortgage and note for the amount of the discount which HUD can call at a later date if the buyer fails to re-certify.
  • After three (3) years from the date of closing, the second mortgage lien will automatically be satisfied.
  • All GNND program participants can not currently own any residential real estate for one year prior to date of submitting an offer on the home being acquired through the program nor have previously purchased another home under the GNND program.
Failure to comply with any GNND requirement may result in the remaining balance of the Second Mortgage becoming immediately due and payable.


The Firefighter/ EMT/Officer/Teacher may pay cash or (1) obtain financing from a HUD approved lender or (2) secure conventional financing.  The down payment for GNND is $100.00 if FHA financing is used.  HUD does not pay a buyer's closing costs or real estate brokers fees on the purchase of property through the GNND program.   Buyers must sign an exclusive buyer's agency agreement and pay broker commission at closing in order to be represented by Jay Jordan and Keller Williams Realty.  Buyers should be advised that when purchasing a home via the competitive bid process, allowable closing costs and broker commission can be paid by HUD. 


For more information, please read the Frequently Asked Questions.  Be forewarned, there are very few properties available thru this program.  If you do not like the restrictions of the program and/or wish to have more control over your housing choices, there are may other properties available on which I can still get you a phenomenal deal and limit the out-of-pocket expenses associated with getting into a home.    Interested parties can contact me to further discuss options and compare costs of a regular HUD purchase vs a GNND purchase.