Has anyone used the Good Neighbor Next Door (HUD) Program?

11 Replies

There is a program offered by HUD called "Good Neighbor Next Door". It's offered to paramedics, teachers, and LEO. It gives a 50% discount off the listed price for qualifying homes in revitalization areas. I searched the forums and didn't see a mention of it. 

Has anyone here used the program or know someone who has? I would like to hear about their experience. 

Less than 1% of HUD homes qualify and are listed in HUDhomestore.com as such. There are curently none in Texas. I actually do not no of anyone that has completed one . The rules are stringent as well. A teacher has to buy within the boundaries of their district with no exception(not even a block as I had a buyer for one). I wish the program was better !

I bought won a GND program but since the home was not in the school district it was declined.  The school is 6 minutes from the home.  I am still working on challenging that as the ruling is locally based by the property management company.  I had a co-worker win won that lived 30 minutes away from her home campus but it was within the school district.  I don't think the management team understands the spirit of its intent.  I'll let you all know how that goes.

Originally posted by @Chris Igard :

I bought won a GND program but since the home was not in the school district it was declined.  The school is 6 minutes from the home.  I am still working on challenging that as the ruling is locally based by the property management company.  I had a co-worker win won that lived 30 minutes away from her home campus but it was within the school district.  I don't think the management team understands the spirit of its intent.  I'll let you all know how that goes.

 I had a buyer several years ago that had the same situation and the bid was cancelled.  

I currently live in a Good Neighbor Next Door home in Norfolk, Va. My wife and I were both teachers at the time and found a great house in an “emerging” neighborhood. I’ve since left the profession; my wife is still fighting strong. We worked at the same school, and the stipulation we were given was that the home had to be somewhere in the school district.. not our particular school’s zone. I liked the kids, just not enough to see them that often. The program worked well in our case, and we are roughly half-way through our 3 year obligation. Norfolk is an urban area, so there are several gnnd homes available at any given time. We had our choice of 2. 

At this point, I am researching some of the many options available to us with all of the free equity that will be coming our way. I’ll be contacting gnnd folks next week to see if we can tap into the “silent second” mortgage, in which sits the other 50% of the cost of the house, before our 3 years are up. I’m pretty sure I won’t be able to utilize that to invest in real estate yet, but it doesn’t hurt to ask, right? Waiting 3 years for nearly 100k in “free” equity is to the worst thing. BP hasn’t me really excited by the possibilities. 

Feel free to ask me any questions you have about the program. I’ll do my best to answer them. 

So for this program if you qualify and are able to afford the full value of the home you only have to pay the mortgage on 50% and then after 3 years you can sell the home and keep half of the profits and any extra equity or gain in value and buy another home in another area?   Also I would assume this program is only available once to first time home buyers. 

@Lee Guy

Extremely limited program offered by HUD. The GNND program is offered on approx 1% of HUDS inventory and the property is designated as such. Usually not in the best of neighborhoods

Additionally, the program is only available for Law enforcement, Teachers and Firefighters.  You must also buy in the area that you serve ie teachers can only buy within the school district they teach in

You must live in the property for 3 years. After that, you can keep any gain on the house when sold

So these are not the homes on HUD site where they list their homes for sale? They are already very limited at one point in the whole state of Florida there were only 50 homes available. If the inventory is less than that the program is basically a joke. I did read the the teacher GNND program is different and not thru HUD and can be for any home you find, but I don't know if they will pay for half of it, it may be just down payment and closing assistance.

@Lee Guy

Yes, all of the listing will appear at Hudhomestore.com

However, only the ones listed under the GNND program are eligible.  Currently in FL there are zero

Same program for teachers

The first one in our area I have seen has shown up.

Sadly I don't have a buyer :(

If anyone is interested in looking at an actual listing it is in Monroe County NY on the hudhomestore site.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here