Good Neighbor Next Door


  • FHA 30 year fixed rate loan

  • Minimum 640 Credit Score

  • Borrowers in selected professions are eligible to purchase HUD REO properties only, in revitalization/exception-criteria areas, at up to 50% off the sales price, as specified by HUD. The following borrowers are eligible for the Good Neighbor Next Door Sales Program:

  • Law Enforcement Officers

  • Firefighters

  • Emergency Medical Technicians (EMTs)

  • Private and Public School Teachers

  • Owner Occupied 1 unit SFRs, PUDs, Modular Homes and Condos are eligible for this program.

  • $100 Minimum Down Payment

  • The buyer may include in the mortgage amount all of the buyer’s reasonable and customary closing costs (including prepaids) and the real estate broker fees

  • Borrowers must agree to occupy the property as a primary residence for three years without interruption.

  • HUD requires borrower sign a Second Mortgage and Note on the discounted amount (which could be up to 50% of the sales price). No interest or payments are required on this "silent second" mortgage if the borrower lives in the home for the entire 36 month occupancy period. Borrower may be required to pay a pro-rata portion of the discount to HUD should the borrower fail to fulfill the three year occupancy requirement.

  • Borrower may not own any other residential real property at the time the borrower submits the offer to purchase a home and for one year previous to that date.

  • The participant must certify he or she is living in the home as a sole residence at the time of purchase and each year after that. HUD can conduct spot checks to make sure the GNND home is his or her sole residence at any time during the 3-year period. HUD may foreclose this mortgage if the borrower does not comply with the 36-month occupancy requirement.

  • Certificate of Law Enforcement Officer, Teacher, Firefighter or EMT

  • For more information, and to view eligible listings, visit the following website:

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