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

Question

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.

Theresa Rader · Answer

Just looked at GNNP home.Would cost too much to repair structural problems(huge crack in ceiling from house settling). Would be out $66-$1000 for 2 inspections. So the 45k/90k home could end up costing an additional 20k-40k to fix structural problems. Then I would still have to do additional work on kitchen,bathrooms, leak around chimney, garage doors, and other misc items. By the time I would be done I would be upside down in property value. Was worth a shot!:)  No bid for me, would rather by a 80-100k home with no problems. I have an awesome realtor who said walk away. Especially after he showed me houses that are move in ready in same price range.

John Teachout · Answer

I'm not opposed to this program but am somewhat confused by all the somewhat ridiculous fair housing laws that real estate people have to tiptoe through and then they offer these special deals to only this select group of people? What about the plumber that stops a flooding leak on a Sunday morning or the HVAC tech that fixes a furnace under a crawl space in the middle of a freezing night? Don't people like that deserve sweet real estate deals too?

Theresa Rader · Answer

I am currently going to look at house under this program in KC Missouri. I will need a loan for 45k on a 90k appraised home. I'm anticipating having to add 20k to loan to qualify under FHA loan guidelines. I'm concerned about the problem of finding contractors that can work with this situation. Also, what if I need more money for more than  just the FHA loan guidelines? Has anyone had to do this before? I'm not sure if I will when the lottery, but wanted some information before I commit myself to a major fixer upper. Perhaps it's not as good as it sounds if I have to take out out such a big loan just to meet FHA standards.

Sawyer Blumhardt · Answer

any updates to this program?

Lee Guy · Answer

Ok thanks  I finally figured it out, it lists all the HUD homes in the results but shows you a map that none are available GNND in light blue.

Mike Cumbie · Answer

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.

Greg H. · Answer

@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

Lee Guy · Answer

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.

Greg H. · Answer

@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