Good Neighbor Next Door Program
If you wish to purchase a home and you’re either a law enforcement officer, firefighter, teacher or emergency medical technician, the Good Neighbor Next Door Program may have the best deal available for you!
It’s called the Good Neighbor Next Door Program—a reward by the US Department of Housing and Urban Development (HUD) for America’s “good neighbors.”
The Benefits of Good Neighbor Next Door Program in a Nutshell
- Buy HUD REO homes for 50% off list price with today’s current mortgage rates.
- Pay only $100 down payment when you buy any eligible HUD home at half-off its price.
How Does the GNND Program Work?
Eligible Single Family homes located in revitalization areas are listed exclusively for sale through the Good Neighbor Next Door program (GNND). Properties are available for purchase through the program for Seven days.
HUD requires that you sign a second mortgage and note for the discount amount (50% Off List Price). No interest or payments are required on this “silent second” provided that you fulfill the three-year occupancy requirement.
Which homes are eligible for the GNND Program?
Specific properties in specific neighborhoods can be an eligible HUD REO home. All single-unit homes are eligible, provided they are located within an HUD designated revitalization area. Revitalization areas are designated by household income, homeownership rate, and the level of area foreclosures. Single-unit homes include single-unit family residences, condominiums, townhomes, and row homes. However, multi-unit homes are not eligible. The home must be HUD-owned for it to be eligible.
You Can Look Up List of Eligible HUD Homes by State at the following link: https://www.hudhomestore.com/Home/Index.aspx
Are all law officers, firefighters, teachers, and EMTs eligible to purchase a home through this program?
Almost all police officers, firefighters, teachers, and EMTs are eligible. Here are the terms:
- For law enforcement personnel: You must be a full-time employee of a federal, state or local government or an Indian tribal government.
- For firefighters: You must be employed full-time by a fire department unit of a federal, state or local government or an Indian tribal government which serves the area in which the home is located.
- For teachers: You must be employed as a full-time teacher by a state-accredited public or private school that serves students from grades pre-kindergarten through 12th Grade. In addition, the school at which you are employed must serve students from the area in which the HUD-offered home is located.
- For EMTs: You must be employed full-time by an emergency medical services responder unit of a federal, state or local government or an Indian tribal government which serves the area in which the home is located.
What are the types of mortgage loans you can use with the Good Neighbor Next Door Program?
When an eligible borrower finds an eligible HUD home they want to purchase, they can pay in cash or use bank financing to purchase the home. The Following Mortgage Loan Programs are eligible:
- FHA Loan
- FHA 203k Loan
- VA Loan
- VA Renovation Loan
- USDA Rural Housing Loan
- Conventional Loan
Do you need to live in the home, or can you use the home as an investment property?
The Good Neighbor Next Door program requires that you occupy your home as your primary residence for at least 36 months. You are not allowed to rent it out or sell it beforehand. However, after 36 months, you can sell the home, retain it as your second home or rent it out as an investment property.
The good news is after 36 months if you decide to sell your home, you can keep 100% of the profit, with no obligation to repay to HUD!
How Do You Apply for a Good Neighbor Next Door Loan?
If you think you’re eligible for the Good Neighbor Next Door program, you can APPLY ONLINE HERE, or you can call John Thomas at 302-703-0727. We’ll give you a complete list of the Good Neighbor eligible homes in your area. We’ll then help you look for the best home for you and your family because you, our good neighbors, deserve the best in life.
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713