There is a special program currently available to police, firefighters, teachers and emergency medical technicians. The program, called Good Neighbor Next Door (GNND), offers a 50% discount on the list price of a home for HUD-owned properties. In return, the borrower must commit to live in the property for a minimum of 3 years as their sole residence.
Program Details
- 30 year fixed and 15 year fixed loan terms
- Minimum $100 down
- Closing costs may be financed
How you can participate in the Good Neighbor Next Door Program:
- Check the listings for your particular area:
- Follow HUD’s instructions to submit an offer
- You must offer the exact HUD list price when bidding on any GNND property. You will then receive a 50 percent discount off of that list price
- If more than one person submits on a single home, a selection will be made by random lottery
- A sales contract is accepted by HUD
- The sales contract must indicate “Good Neighbor Next Door” to obtain the $100 down payment feature
- You will be required to sign a second mortgage note for the property discount amount. No interest payments are required on this “silent second” provided that they fulfill the three-year occupancy agreement.
There are many other details to this loan program, such as requirements to be completed during the three-year silent second period, and property location in relation to your employer, but it may be a great opportunity for the right person. Contact me with follow up questions.
