Good Neighbor Next Door Program
- Author: William Asher
- Posted: 2023-12-15
The program provides participants with a 50 percent discount off the appraised value of a qualifying property during the first week that the property is listed for sale. For example, this means that program participants can purchase a $200,000 home for only $100,000. Candidates can also apply for an FHA-backed mortgage that allows them to finance repairs, closing costs, improvements, and other expenses. The grant requires that participants make the home their primary residence for at least three years. After that time, there are no further commitments on the part of the homeowner. They are free to continue to live in the home, sell the home for a profit, or even convert the home into a rental.
Who is Eligible?
To qualify for GNND, you must be a full-time employee of a state, county, parish, or municipality. Federal employees and those working in Indian tribal government, local government, or state-accredited public or private schools are also eligible. Candidates and their spouses must not own a home currently or within the last year. You also do not qualify if you or your spouse have previously purchased a home under the GNND program or its predecessor Officer Next Door or Teacher Next Door programs.
How Do I Purchase a House Through GNND?
To participate in the GNND program, you first need to register to get text and email notifications of home listings in your area. It is important that you receive these notifications quickly since GNND homes are only available for seven days. You will then be assigned a real estate agent who will assist you in registering for a lottery drawing on the property that you choose. HUD then randomly selects a winner from among the candidates interested in that property. Each interested candidate has the same opportunity to purchase the home. Your assigned real estate agent will also provide you with information regarding mortgage lenders who can pre-qualify you for your loan. Be sure to check out our step-by-step guide to purchasing a GNND home.
Do I Really Have a Chance of Getting a Home?
Absolutely. Your odds of being selected for a particular home are directly proportionate to the number of other interested buyers. For example, if three people are interested in buying the same GNND home, each one has a 33 percent chance of being selected. In many cases, there is only one interested party. Unfortunately, a number of GNND homes were dropped from the program because no candidates came forward before the seven-day deadline.
Requirements for Law Enforcement:
Candidates working in law enforcement must choose from GNND homes that are located within the area that their employer services during normal business. You must supply certification from your employer that you are a full-time employee in a law enforcement division of a federal agency, a unit of local or Indian tribal government, a state, or a parish. You must also be sworn to uphold the law and make arrests for actions that violate municipal, township, parish, county, state, federal, or tribal law. As a general rule, dispatchers, support staff, civilian employees, and law enforcement agents serving private colleges, universities, and corporations are not eligible to participate in the GNND program.
Requirements for Teachers:
Teachers working in public schools are restricted to GNND homes that are within their district. Private school teachers must choose a home within their employer�s service area. You must provide certification from your employer that you work full-time as a classroom teacher in grades Pre-K through 12 in a state-accredited state or private school. You must also provide certification that your school serves students in the district or area where the home is located as part of its normal course of business. In most cases, teacher�s aides, support staff, paraprofessionals, and school administrators are not eligible for homes under GNND.
Requirements for Firefighters and EMTs:
Firefighters and EMTs wishing to participate in the GNND program must work for a fire department or emergency services unit of a local municipality, parish, state, federal, or Indian tribal government agency that serves the area where the home is located. First responders working for privately-owned companies are not eligible to purchase GNND homes in most instances.