What is the Good Neighbor Next Door Program?

By admin | March 12, 2009

The Good Neighbor Next Door Program is a HUD program for new buyers designed to aid in the revitalization of certain communities. In this program teachers of grades pre-K through 12, law enforcement officers, and firefighters/emergency medical technicians are offered incentives to purchase a home and live full time in communities dedicated to revitalization.

Eligible single family homes in revitalization areas are listed exclusively for sale through the Good Neighbor Next Door Program for five days. Those professionals eligible to purchase a home under the Good Neighbor Next Door Fund are able to purchase the home during this time period at 50% of the list price of the home.

In exchange for the greatly reduced purchase price, the buyer agrees to live in the home as a primary residence for a period of 36 months (3 years). Additionally, the buyer must sign a “silent second” mortgage agreement, equal to the remaining 50% of the list price of the home. No payment will ever be paid on the “silent second” provided the buyer remains in the home for the agreed upon 36 months.

To make the HUD Good Neighbor Next Door home even more affordable, the new homeowner may apply for an FHA-insured mortgage with a down payment as low as $100. They may also finance all closing costs.

The list of available properties changes weekly and is limited. Contact a HUD/FHA counselor for further information.

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