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    Good Neighbor Next Door

    HUD homes at 50% off Available for Teachers, Police, Firefighters, EMTs and more...

The downturn of the real estate market brought about many foreclosures. Some neighborhoods were affected worse than others from city to city. To help bring these neighborhoods back, HUD, a division of the Federal Government, established  the “Good Neighbor Next Door” program.

This program is geared toward those who have a job that is based in the community where they are buying a house such as Emergency Medical Technicians, Firefighters, Law Enforcement and Teachers. By buying a home that has been foreclosed and is left vacant, these professionals are contributing to revitalizing the surrounding community.  The buyer will get a 50% discount off the listed price when buying a HUD property when they make the commitment to stay in the house for a minimum 36 months.

How the Good Neighbor Next Door Program Works

There are homes that once they are foreclosed on and have gone through all the due process, are put into HUD’s inventory, which is currently overflowing. The single family homes that are located in areas that are in need of revitalization and placed in the Good Neighbor Next Door Sales program.

How To Buy a home through the Good Neighbor Next Door Program

You first need to confirm you meet the requirements. First requirement is your employment must be a  Emergency Medical Technician, Firefighter, Law Enforcement or Teacher.

Then find a home you’re interested in. Every state has it’s own listings, which you can find on the HUD website. The lists are updated weekly and properties only stay for 7 days.  Along with the listings are the instructions how to submit interest in buying a specific home from the list. When there is multiple parties on one property, the choice of who is awarded the purchase is a random lottery.

Once you have a property selected and it is awarded to you by HUD, you will be required to sign 2 mortgages. One for the discounted price you’re purchasing the property for and a second mortgage for the 50% discounted amount. Provided that you stay the required 36 months or longer, the 2nd mortgage is null and void.

Good Neighbor Next Door FAQs

What Is the Good Neighbor Next Door Sales Program?
In the aftermath of the real estate market crash and the abundance of homes being foreclosed and left vacant, many neighborhoods have suffered and are becoming ran down, unsafe. HUD implemented this program in an attemt to strengthen those neighborhoods by offer eligible buyers a 50% discount on those vacant homes through the The Good Neighbor Next Door Program.
Who is Eligible for the Good Neighbor Next Door Program?
Any full-time person that is full-time employed as an EMT, firefighter, law enforcement officer or teacher in the community they want to purchase a house.
What is the discount for those eligible to purchase one of these HUD homes?
The property is disconted 50 percent discount off the appraised value as long as it is an owner-occupant property and your main residence for the required 3 year occupancy period. If you are going with an FHA-insured mortgage, the downpayment is only $100 and many times the closing costs can be financed.
What Mortgage Financing Is Available?
You may use cash, convential, FHA or VA. There is a 2nd mortgage required by HUD for the 50% discounted amount as back up should you not live the full 3 year period. Once the 3 years is completed and verified, the 2nd mortgage is null and void.
What is the Occupancy Period?
Question: What is the Occupancy Period? The home must be your primary residence for a 3 years. Since the program was established to create stronger neighborhoods by those hard hit with foreclosures and vacancies, HUD believes by having those who are employed as an EMT, firefighter, law enforcement officer or teacher for a minimum 3 years will help. Buyers have up to 180 days to move into the property once they have closed, which is determined by HUD based on the amount and type of repairs needed to suitable living. The buyer is required to make those repairs within the time frame permitted by HUD.
Can the FHA Rehabilitation Mortgage Help Me Purchase a HUD Home?
The 203K mortgage program assists buyers with funding repair a property to make it habitable. The minimum cost of repairs allowed to finance is $5,000 and is combined with the mortgage for one monthly payment.
After the 3 year period, can I Sell the a Good Neighbor Next Door home I've purchased for profit?
Once you have completed the 3 year requirement, the home is yours to keep, sell or use as investment property.
Is it necessary to have a Real Estate Agent or Broker purchase a Good Neighbor Next Door Home?
Yes. Anytime you have a real estate transaction of any kind, you should always have a real estate expert. The paper work is intense and real estate law is complicated.
Is this program only for first time buyers?
No, but you can not have ownership of any other residential property at the time you put in an offer for one year prior.

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