The Good Neighbor Next Door Program:
HUD, through the FHA lending programs, wants to strengthen and rejuvenate communities throughout America.
The Good Neighbor Next Door Program offers HUD owned single family (one-unit) homes to eligible participants at a 50% discount. The purpose of the program is to strengthen communities by encouraging employed, professional law enforcement officers, teachers and firefighters/emergency medical technicians to live within the community.
For example, if HUD lists a home at $100,000, a borrower can buy it for $50,000 provided they occupy the home as their personal residence for the required occupancy period. Borrower must live in the home as their sole residence for a full 36 months (or 42 months for 203k loans).
HUD offers a 50 percent discount off the HUD appraised value.
Eligible participants are Law enforcement officers, teachers and firefighters or emergency medical technicians and who meet all other requirements of the program are eligible to purchase an available home.
Eligible borrowers have 30, 90 or 180 days to move into the home they purchase, depending on HUD’s determination of the condition of the home and the level of repairs that may be required, if any. The 30th, 90th or 180th day is the start date for the occupancy period. Borrowers are released from all obligations under this program at the end of the 36th month following the start date or 42nd month for 203k loans. HUD views the occupancy obligation seriously and vigorously pursues violators to the fullest extent of the law.
After borrower has lived in the GNND home for 3 years, they can sell the home and keep any equity and/or appreciation. HUD does annual certifications to ensure the home is owner occupied.
Borrower does not have to be a first time homebuyer, but they may not own any other residential real property at the time they submit their offer to purchase a home and for one year previous to that date. For example, if they submit an offer to purchase a home on September 1, 2014, they (or their spouse if married) may not have owned a home during the period from August 31, 2013.
These HUD homes are located in designated Revitalization Areas. There are hundreds of Revitalization Areas located in the United States.
This program is ONLY available for single family residences only.
For more information about this program or any of our other Specialty Lending programs, contact your Approved Funding mortgage advisor today!