Good Neighbor Next Door Program is sponsored by U.S. Department of Housing and Urban Development (HUD). Offers law enforcement officers, firefighters, EMTs, and teachers a 50% discount on HUD-owned homes in designated revitalization areas.

HUD Good Neighbor Next Door Program | HUD. gov / U.S. Department of Housing and Urban Development (HUD) HUD Good Neighbor Next Door Program Law enforcement officers, teachers (pre-Kindergarten through 12th grade) firefighters and 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, an eligible buyer must commit to live in the property for 36 months as his/her principal residence. Eligible Single Family homes located in revitalization areas are listed exclusively for sale through the Good Neighbor Next Door Sales program.

Properties are available for purchase through the program for seven days. How to Participate in Good Neighbor Next Door 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 requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply with HUD's regulations for the program. 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 . The number of properties available is limited and the list of available properties changes weekly. To learn more, please visit our FHA Frequently Asked Question page.

Good Neighbor Next Door Eligible Participants The U.S. Department of Housing and Urban Development (HUD) wants to make American communities stronger and to build a safer nation. The Good Neighbor Next Door (GNND) program helps make this goal a reality by encouraging law enforcement officers, pre-K through 12th grade teachers and firefighters/emergency medical technicians to become homeowners in revitalization areas.

A person qualifies as a law enforcement officer for the purposes of the GNND Sales Program if the person is: Employed full-time by a law enforcement agency of the federal government, a state , a unit of general local government , or an Indian tribal government; In carrying out such full-time employment, the person is sworn to uphold, and make arrests for violations of, federal, state , tribal, county, township, or municipal laws and The full-time employment in paragraph (a) of this section must, in the normal course of business, directly serve the locality in which the home is located.

A person qualifies as a teacher for the purposes of the GNND Sales Program if the person is: Employed as a full-time teacher by a state -accredited public school or private school that provides direct services to students in grades pre-kindergarten through 12; and The full-time employment in paragraph (a) of this section must, in the normal course of business, serve students from the locality where the home is located.

Firefighter or Emergency Medical Technicians A person qualifies as a firefighter/emergency medical technician for the purposes of the GNND Sales Program if the person is: Employed full-time as a firefighter or emergency medical technician by a fire department or emergency medical services responder unit of the Federal Government, a State , unit of general local government , or an Indian tribal government; and The full-time employment in paragraph (a) of this section must, in the normal course of business, directly serve the locality where the home is located.

Good Neighbor Next Door Mortgages The National Servicing Center (NSC) monitors the servicing of Good Neighbor Next Door (GNND) loans after closing. The Good Neighbor Sales program allows eligible full-time law enforcement officers, teachers, and firefighters/emergency responders to participate. This page describes GNND participant responsibilities according to program regulations.

When participants purchase properties under the GNND program they agree to own and live in the property for a three-year period as their sole residence. Participants are required to certify every year that they are living in the property. The annual certification is mailed to participants, ready for signature, around the anniversary of the purchase.

Participants should sign, date, and return the form to the address specified in the letter. If they fail to return the first letter, a follow-up letter is sent one month later. At times, their return letter and our follow-up letter cross in the mail.

If this happens, participants can either contact our servicer to determine if the first certification was received and logged in or they can sign and return the second certification. Participants who are called to active military duty are provided clemency in regards to the owner occupancy requirements of the program for the timeframe that they are on active duty.

Participants on active military duty are not required to occupy the property and are allowed to rent the property (only while on active duty) if necessary to minimize potential vandalism. However, the NSC needs to be aware of those participants who are on active military duty and are not occupying their property. Participants must notify the NSC according to the Military Duty Instructions .

Print out the information and instructions and comply with the instructions so that you will not be referred for investigation during your military duty. When participants close on their home, they sign a note and a mortgage. The mortgage is filed right after the first (primary) mortgage, making it a second mortgage.

When participants pay off their first mortgage (usually done by refinancing), HUD's mortgage moves into first position. If a participant is attempting to refinance their first mortgage, the lender will want its new loan to be in first position. In order to accomplish this, HUD must be willing to subordinate its position to the new first mortgage.

HUD has certain rules and procedures regarding subordinating. The rules are that HUD will consent to refinancing (1) for the purpose of obtaining an FHA 203(k) rehabilitation loan or (2) for the purpose of obtaining a lower mortgage interest rate or change in the term of the loan and (3) to prevent the participant from defaulting on the first mortgage.

The 203(k) loan is a rehabilitation loan in which necessary property improvements are financed into a new loan. The closing (or title) agent handling the closing of the new loan should handle the paperwork and details to obtain the HUD subordination. Participants can refer the closing company to this page or they can print the Subordination Information sheet and take it to the closing company.

Read the linked information then mail or fax the subordination request to HUD's Loan Servicing Contractor . If a participant needs to dispose of the property before expiration of the three-year occupancy period (for job relocation, family composition changes, or refinance), HUD's Loan Servicing Contractor processes those payoffs.

Fax the request for the payoff with the following information: participant's name, full property address, estimated closing date, company requesting the payoff, company address, company telephone number, return fax number, and signed permission of the participant to collect the data. All of this information may be mailed or faxed to HUD's Loan Servicing Contractor .

Payoff requests are usually processed and faxed out within 2 business days of receipt. Releases are prepared and filed by HUD's Loan Servicing Contractor . If you have comments and questions about your GNND loan, please e-mail us.