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Good Neighbor Next Door Program Mortgage Lenders

Good Neighbor Next Door

Discount homes for teachers, firefighters, EMTs, and police officers.

Updated for 2016:  Please note that the supply of homes for this program currently is very low and has been for a few years.  It is not that common to see eligible homes anymore.  If you are in a location where you see a home available, we certainly do encourage you to contact us as we provide the necessary FHA loan program to finance homes for Good Neighbor Next Door.

 

Otherwise, we still offer all of the most popular mortgage products, such as conventional, FHA, USDA, VA, and jumbo loans.  If you are any of the following professions that are GNND participants, we would love to hear from you and provide a competitive quote for your home buying or refinancing needs:

 

Mortgages for Teachers

At USA Home Financing we pride ourselves on providing the most competitive home loans for the GNND program.  We like to think of ourselves as the best GNND lenders in the country.  We offer unique, flexible loan programs that provide exceptionally low mortgage rates, priority underwriting, fast and easy processing, and low down payment options.  We participate in the special FHA GNND mortgage which only requires a $100 down payment on the purchase of the property.

Our GNND Mortgage Loan Programs Are Available in the Following States:

Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Kansas, Louisiana, Iowa, Illinois, Indiana, Maryland, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming.

Eligible Participants for Good Neighbor Next Door:

The good neighbor next door program is exclusively offered to any full-time teacher, police officer, firefighter or emergency medical technician (EMT) substantial discounts on homes.  It is a common misconception that nurses qualify for the good neighbor next door program but unfortunately at this time they are not included in the program.  However, we offer many great home loan programs for nurses.  The program was designed by HUD with the intent of promoting homeownership along with the purpose of revitalizing neighborhoods across America.  The significant discounts on home prices hope to bring in “good neighbors” that will move into select revitalization areas.  The term “good neighbor” is based on the assumption that the individuals and families that would be moving in are likely going to be responsible members of the community and possibly even having a positive impact on the area.

Good Neighbor Next Door Program Requirements

  • In order to participate for the good neighbor HUD program you must be employed full-time in one of the aforementioned qualifying professions.  The other requirements are that you must either be a first time home buyer or have not owned a home in the past year.
  • The property that you buy must be a one unit single family residence.  This means you can buy a house, condo, of townhouse.  You may not purchase a multi-unit property such as a duplex or apartment building.
  • You must reside in the property for 3 full years.  You may not rent the property or live in another home as your primary residence.  In order to qualify you have to sign a second mortgage note for the 50% of the purchase price that is being discounted.  This is called a “silent second mortgage” which means you do not have to pay anything monthly or ever as long as you do not move or sell the property within 36 months.

 
GNND Frequently Asked Questions:

What is the Good Neighbor Next Door program?

The Good Neighbor Next Door program, also known as GNND, offers single-family homes to eligible parties at a significant discount.  People with careers as teachers, emergency medical technicians, law enforcement officers and firefighters may take advantage of the program, which gives these people a significant discount on the purchase of a home.  These homes are all located in areas targeted for revitalization and have been foreclosed on by previous owners.  The program is sponsored by the US Department of Housing and Urban Development, and the homes are available all over the country.

What is the purpose of GNND?

The US Department of Housing and Urban Development established GNND as a way to build strong communities by bringing upstanding community members into certain neighborhoods.  The program encourages professionals to seek housing in areas they might not have considered otherwise.  The program also brings in new teachers, law enforcement officers and emergency responders to work in the areas that need them most.  GNND is also beneficial for first-time home owners who would benefit from a significant discount.

Who is eligible to participate in GNND?

Teachers, firefighters, police officers and emergency medical technicians are eligible to purchase homes using the GNND sales program.  Teachers must be involved with pre-kindergarten to 12th grade; college-level instructors are not eligible.  We have other home loan programs for educators that accommodate to all types of educators, including those at the colleges and universities, and all school faculty, not just teachers.

How much is the discount for eligible GNND parties?

Those who qualify for GNND may receive a discount of 50% taken off the value of the home, determined by the Department of Housing and Urban Development.  You are not allowed to haggle on the price of the home.  Every person put in the lottery for a particular home must bid the listing price of the home to be eligible.  This means that if a home is listed at $80,000, you will place a bid for the full amount but will end up paying just $40,000.  In addition, the buyer may be qualified to pay a severely discounted down payment.

What are the requirements I must meet to be approved for GNND?

In addition to meeting the employment requirements, you qualify for the program only if you occupy the home for a 36-month period.  It must remain your sole residence throughout the duration.  After purchasing the home, you will be given a period of time to move in, ranging from 30 to 180 days.  The Department of Housing and Urban Development will use the condition of the house to determine when a move would be most feasible.  The 36 months begins on the day this grace period ends.

How can I obtain financing for my GNND home?

We are HUD GNND mortage lenders.  It is fine for you to pay with an FHA, VA or conventional mortgage, and we provide programs for each.   We recommend an FHA loan since you may qualify to only have to place a $100 down payment.  Many participants even pay the full amount in cash though.  One requirement the Department of Housing and Urban Development does have is that participants sign a second mortgage and note for the discounted amount.  Participants are not required to make any payments on this mortgage unless they fail to meet the occupancy requirements.

When can I opt to sell my home?

If you have been using the GNND program and wish to sell your home after the 36-month period of required occupancy, you may do so.  The profits are yours to keep.  You may not sell the home during the required occupancy period, even if you remain living in it after the sale.

How can I purchase a GNND-approved home?

You must work with an approved real estate agent or broker to find one of these approved homes.  You will be entered into a lottery for the home you select.  Each home is listed on the market for just five days before the lottery winner is pulled.  While you are only able to purchase one home, you are eligible to put your name in the lottery for as many as you like.  This will increase your chances of winning a home.  You are always welcome to back out if you learn that the home you win just isn’t for you.

What kinds of homes qualify for GNND?

These homes are located in revitalization areas, of which there are hundreds in the US.  In addition, all homes are single-family units and do not include condos, apartments or town homes.  Each home has been foreclosed on in the past.  This means that a wide variety of homes are available, fitting into any budget.

What if I already own another home?

Sorry, you must not own any residential property at the time you submit an offer on a GNND home. In addition, you may not have owned a home in the 12 months leading up to your offer.

Do the GNND homes come with a warranty?

Unfortunately, no.  All GNND homes are sold “as is.”  None of these homes come with warranties; however, special FHA mortgages will help buyers repair their homes at a reasonable rate.

Are there any loan programs that will finance repairs?

Special FHA mortgages are available for those eligible for GNND and who want to make home repairs. If the home requires repairs amounting to more than $5,000, the buyer may incorporate the cost of repairs into the monthly mortgage payments.

What if I lose or quit the job that made me eligible for the GNND program?

If you no longer work in the job that made you eligible during the 36-month period, you may keep the home so long as you continue living in it.  When you sign up for the program you are making a good faith agreement to remain employed in this position.  The Department of Housing and Urban Development urges people not to apply for the program if they do not believe they will continue working in their current field of employment.

Do I need to pay earnest money?

You must pay 1% of the listing price in earnest, demonstrating that you intend to purchase the homes.  Eligible parties who qualify for FHA-insured mortgage programs must place only $100 down on the home’s initial payment.  In addition, the buyer is qualified to finance all closing costs.

Do I have to buy a GNND home in my district?

Yes. Teachers, firefighters and EMTs who take advantage of the program must live in the areas their employer serves. Law enforcement officers are restricted to homes within a reasonable commuting distance.

What if I do not live in the house for the required 36 months?

The HUD will follow up with all GNND-approved buyers on an annual basis.  The department will use spot checks to ensure that the residence is kept by the buyer.  These checks can occur at any time. In addition, buyers must sign an agreement each year, certifying that they still live in the home.  Failure to return this certification promptly may result in an investigation.

Active military members called for deployment are allowed to rent the home out in their absence after filling out the proper paperwork.  Those who move before the time period is up are required to pay the discounted amount to the Department of Housing and Urban Development. It is considered fraud to break the required occupancy period without informing the HUD and in these cases the HUD will consider criminal prosecution and a hefty fine.

Thank you. A loan officer will contact you within 24 hours.

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Home Loan Programs Available In:

Alabama, Arkansas, Arizona, California, Colorado, Florida, Georgia, Kansas, Louisiana, Iowa, Illinois, Indiana, Maryland, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.