Who Qualifies for the Good Neighbor Next Door Program?

The Good Neighbor Next Door (GNND) program, sponsored by the U.S. Department of Housing and Urban Development (HUD), aims to strengthen communities by offering a substantial incentive for specific public service professionals to purchase homes in revitalization areas. This initiative provides eligible individuals the opportunity to acquire HUD-owned single-family homes at a significant discount. The program’s purpose is to encourage homeownership among those who serve the public, thereby fostering community stability and revitalization.

Specific Eligibility Roles

The Good Neighbor Next Door program is exclusively available to individuals employed full-time in one of four professions: law enforcement officers, teachers, firefighters, and emergency medical technicians (EMTs). These roles are recognized for their direct contributions to community well-being and safety. Participants must verify their employment status and intend to remain in their profession for at least 12 months after the home purchase.

Law enforcement officers must be full-time employees of a federal, state, local, or Indian tribal government agency. Their duties must include upholding the law and making arrests within the community where they intend to buy a home.

Teachers eligible for the program must be employed full-time by a state-accredited public or private school. They must teach grades pre-kindergarten through 12 and serve students from the local area where the home is located.

Firefighters and emergency medical technicians (EMTs) qualify if they are employed full-time by a fire department or an emergency medical services unit of a federal, state, local, or Indian tribal government. They must serve the area where the home is located. Civilian personnel, dispatchers, and volunteers are not eligible for the program, emphasizing the requirement for direct emergency response duties.

Property Requirements

Homes available through the Good Neighbor Next Door program are exclusively HUD-owned properties. These are single-family homes, townhouses, or condominiums that HUD acquired typically as a result of foreclosure on an FHA-insured mortgage. Not all HUD properties are part of this program; only those located in HUD-designated revitalization areas are eligible.

Revitalization areas are geographic regions identified by HUD based on specific criteria, including relatively low median household income, high foreclosure rates, and low homeownership rates. The program aims to increase homeownership in these neighborhoods. Eligible properties are listed exclusively for sale through the Good Neighbor Next Door Sales program for a limited period, often seven days.

These properties are sold “as-is,” meaning that HUD does not undertake repairs or renovations prior to sale. Buyers are responsible for any necessary repairs or improvements after purchase. Information on available homes can be found on the HUD Homestore website, and potential buyers often work with a HUD-registered real estate broker to identify and bid on properties.

Program Participation Obligations

Participants in the Good Neighbor Next Door program receive a substantial 50% discount off the list price of the home. In exchange for this significant incentive, buyers commit to specific obligations designed to support the program’s community revitalization goals. The primary obligation is a residency requirement.

Buyers must agree to live in the purchased property as their sole primary residence for a minimum of 36 months, or three years. This occupancy period begins on the date of closing or within a specified number of days (e.g., 30, 90, or 180 days) depending on the property’s condition and any required repairs. HUD monitors this requirement and may conduct spot checks to ensure compliance.

To secure the 50% discount, HUD requires participants to sign a “silent second mortgage” for the discounted amount. This mortgage carries no interest and requires no payments as long as the buyer fulfills the 36-month occupancy requirement. If the buyer fails to meet the full residency period, they may be required to repay a prorated portion of the discount to HUD. Upon successful completion of the three-year occupancy, the second mortgage is forgiven, and the lien on the property is released.