FHA Mortgage Lenders provide incentives for Law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians can contribute to community revitalization while becoming homeowners through FHA/HUD’s Good Neighbor Next Door Sales Program. The Good neighbor Next Door FHA mortgage loan program offers a 50% discount off from the list price of the home. The only requirement is that you must commit to live in the property for 36 months as your sole residence.
How the Good Neighbor Next Door Program Works- Eligible Single Family homes located in revitalization areas are listed exclusively for sale through t
he Good Neighbor Next Door Sales program. Properties are available for purchase through the program for seven days.
How do I calculate the loan amount for a mortgage under the Good Neighbor Next Door program?The qualifying buyer receives a discount of 50% off the sales price. However, HUD does not pay a buyer’s closing costs or real estate broker fees on the purchase of property through the Good Neighbor Next Door program. The closing documents should not show HUD as a source of funding for the buyer’s closing costs, prepaids or broker fees. If the buyer is purchasing the home with an FHA mortgage, the buyer may include in the FHA mortgage amount all of the buyer’s standard closing costs (including prepaids) and real estate broker fees, and make a ($100) down payment. A buyer using a financing option other than an FHA mortgage must comply with the terms and conditions of the selected mortgage.
How to Participate in Good Neighbor Next Door FHA Mortgage Program? Check the listings for your state. Follow the instructions to submit your interest in purchasing a specific home. If more than one person submits an offer on a single home a selection will be made by random lottery. You must meet the FHA Good Neighbor Next Door requirements for law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD’s regulations for the program.
Where can I get a list of available properties for sale under the Good Neighbor Next Door Program? Properties for sale under the Good Neighbor Next Door (GNND) Sales Program are single family one-unit HUD Real Estate Owned (REO) properties, located in HUD-designated revitalization areas. The GNND program is available to eligible law enforcement officers, teachers, and firefighters/emergency medical technicians.To search for properties listed for sale under the GNND program, visit the HUD Home store website at: http://www.hudhomestore.com
Good Neighbor Next Door information links
- How do I calculate the loan amount for a mortgage under the Good Neighbor Next Door program? costs (including prepaids) and real estate broker fees, and make a downpayment of only one hundred dollars ($100). A buyer using a financing option other than an FHA mortgage must comply with the terms and conditions of the selected mortgage
- Where can I get a list of available properties for sale under the Good Neighbor Next Door Program?Properties for sale under the Good Neighbor Next Door (GNND) Sales Program are single family one-unit HUD Real Estate Owned (REO) properties, located in HUD-designated revitalization areas. The GNND program is available to eligible lawCategory:
- What are the requirements for a teacher to buy a HUD Home under the Good Neighbor Next Door (GNND) program?Under HUD’s Good Neighbor Next Door (GNND) Sales Program, an eligible teacher may purchase a designated single-unit HUD Real Estate Owned (REO) Property in a Revitalization Area at a discount of 50 percent off the list priceCategory:
- What are the requirements for a firefighter or emergency medical technician to buy a HUD Home under the Good Neighbor Next Door (GNND) program?Under HUD’s Good Neighbor Next Door (GNND) Sales Program, an eligible firefighter or emergency medical technician (EMT) may purchase a designated single-unit HUD Real Estate Owned (REO) Property in a Revitalization Area at a discount of 50Category:
- What are the requirements for a law enforcement officer to buy a HUD Home under the Good Neighbor Next Door (GNND) program?Under HUD’s Good Neighbor Next Door (GNND) Sales Program, an eligible law enforcement officer may purchase a designated single-unit HUD Real Estate Owned (REO) Property in a Revitalization Area at a discount of 50 percent off the list priceCategory:
- What are the owner-occupancy requirements under the Good Neighbor Next Door program?The Good Neighbor Next Door (GNND) participant must live in the Property as their sole residence for an owner-occupancy term of 36 months, beginning: 30 Days after closing if the home requires no more than $10,000 in repairs beforeCategory:
- What bid amount must be submitted for a Good Neighbor Next Door (GNND) property?The selling broker, representing a prospective buyer of a Good Neighbor Next Door (GNND) property, must submit the bid at the full list price; the Asset Manager (AM) will apply any applicable discounts in the sales priceCategory:
- Does HUD provide a model Note and Second Mortgage for the Good Neighbor Next Door program?Yes. The required content for the Good Neighbor Next Door Program (GNND) Note and Second Mortgage can be found on the Single Family Mortgages Model Documents web page
- Who handles Subordination, Payoff, and Release requests for Good Neighbor Next Door second Mortgages?HUD’s Loan Servicing Contractor is responsible for the servicing of Good Neighbor Next Door (GNND) second Mortgages. Requests for subordinations, payoff amounts, mortgage releases, or other servicing information must be submittedCategory:
- Under the Good Neighbor Next Door program, can a buyer finance their closing costs?Under the Good Neighbor Next Door (GNND) Sales Program, an eligible buyer, who is purchasing a HUD Home with an FHA-insured loan can finance into the loan the reasonable and customary closing costs, including any prepaid items and real estateCategory:
- What happens if a purchaser who buys a home under a Good Neighbor Next Door program fails to close on the purchase?Under the Good Neighbor Next Door (GNND) program, HUD selects the winning bidder randomly by lottery. In addition, HUD allows up to two back-up bids for GNND properties. Should the winning bidder’s sale fail to close, HUD may offerCategory:
- Under the Good Neighbor Next Door programs, what happens to the second mortgage if the borrower dies prior to satisfaction of the three year occupancy period?Under the Good Neighbor Next Door (GNND) programs, if the borrower dies before the three year occupancy period is satisfied, HUD will not pursue satisfaction of the terms of the second mortgage against the borrower’s estate or heirsCategory:
- Can I refinance a loan obtained through the Good Neighbor Next Door (GNND) program?The owner of a property bought through the Good Neighbor Next Door (GNND) sales program, or the predecessor Officer/Teacher Next Door program, and still under the occupancy period requirement, may refinance the first mortgage but must requestCategory:
- Must a Good Neighbor Next Door (GNND) participant work with a HUD-approved selling broker to buy a GNND property?Good Neighbor Next Door (GNND) participants must contact a HUD-approved selling broker to place a bid on a GNND property. The selling broker must submit the bid electronically through the HUD HomeStore websiteCategory:
- How do I calculate the loan amount for a mortgage under the Good Neighbor Next Door program?The qualifying buyer receives a discount of 50% off the sales price. However, HUD does not pay a buyer’s closing costs or real estate broker fees on the purchase of property through the Good Neighbor Next Door (GNND) program. Closing documentsCategory:
- Through what special programs does HUD offer discounts on HUD Real Estate Owned (REO) Properties?(NSP) grantees may purchase HUD REO Properties in NSP-designated areas for up to a 15% discount off the list price. Good Neighbor Next Door The Good Neighbor Next Door (GNND) Sales Program permits an OwnerCategory:
- Can time served on active military duty count toward occupancy for the GNND Program?Good Neighbor Next Door (GNND) program participants who are called to active military duty at posts outside the commuting area of the home purchased under the GNND Program may be unable to satisfy the three year occupancy requirementCategory:
- Can the 203(k) program be used to purchase a HUD REO property?A HUD Real Estate Owned (REO) property, including a Good Neighbor Next Door (GNND) property, may be eligible under the 203(k) program. The property is identified as eligible for 203(k) financing in the sales contract or addendumCategory: General Purchase Info
- Is upfront and annual MIP calculated in the second mortgage for a GNND purchase? associated with the purchase of a Good Neighbor Next Door (GNND) property.
- What is a HUD revitalization area?Revitalization Areas are designated geographic areas in which HUD identifies Properties eligible for disposition through discount sales programs, such as the Asset Control Area and Good Neighbor Next Door program.
- How do I place a bid on a HUD Home?Homebuyers, including Good Neighbor Next Door (GNND) participants, must use a HUD-registered Selling Broker or Selling Agent to place a bid on their behalf to buy a HUD Home. To locate HUD-registered Selling Brokers in your area,
