Good Neighbor Next Door is a wonderful program for certain members of the community. The program offers significant discounts on single-family HUD homes for police officers, teachers, firefighters and emergency medical technicians – 50% off! Here are the details:

HUD offers certain single family properties for sale to police officers, pre-kindergarten-12th grade teachers, firefighters and emergency medical technicians at a 50 percent discount.

HUD requires the GNND buyer to sign a second mortgage and note for the discount amount. There is no interest or payments on the second mortgage provided the buyer fulfills the 3 year occupancy requirement.

After the buyer lives in the home for 3 years, they can sell the home and keep any equity and/or appreciation.

If the buyer moves out of the home prior to the 3 year requirement, they will have to repay HUD on a prorated schedule.

“Lottery” listings only will include homes designated in the Good Neighbor Next Door program.

These homes are in this program for 7 days.

  • The buyer may not own a home as a primary residence in the 12 months prior to submitting the bid.
  • They must certify that it is their good faith intention to remain employed as a law enforcement officer, teacher, firefighter or EMT for one year beginning with their purchase.
  • Single unit homes, townhomes and condominiums are available in this program.
  • Buyers can use FHA, Conventional, VA financing or cash to purchase the home.
  • HUD does not pay buyer closing costs in the GNND program.
  • The list price is the purchase price. The 50% discount is taken from the list price.
  • Revitalization areas are designated by HUD and authorized by Congress and are intended to promote the revitalization of that area through expanded homeownership opportunities. GNND participants contribute to community revitalization by becoming homeowners through this program.
  • If more than one GNND bid is submitted, the decision as to which offer is accepted is based on a lottery drawing as all offers will be identical.
  • Earnest money deposit requirement is an amount equal to one percent of the list price but no less than $500 and no more than $2000.
  • HUD does not pay listing or selling broker commission on properties sold in the GNND program. However, HUD will authorize up to 5% commission to be paid by the buyer to the selling brokerage.