Good Neighbor Next Door (GNND) is the new name for an old program. Most of you may know it as Teacher Next Door or Officer Next Door. In 2005 the program was changed to include firefighters and emergency medical technicians (EMTs).
• Specifically for designated HUD homes in revitalization areas
• $100 down
• 50% discount (provided by HUD as “silent second”)
• “Silent second” released after buyer occupies as primary residence for 36 months
• Active Duty Military Deployment is not considered an occupancy violation
• All equity/profit is buyer’s after initial 36-month period
• HUD doesn’t pay closing costs, prepaids, or selling agent commission; however, ALL can be rolled into new FHA loan
• Bid MUST be submitted by registered HUD agent
Eligible borrowers are:
• Law enforcement officers with arrest powers not limited to geographic area (Example: Military police with arrest powers limited to a military base are not eligible.)
• Pre-K through 12th grade teachers
• Firefighters and/or EMTs
Additional borrower criteria:
• Teachers, firefighters and EMTs must be employed by an entity that serves the area where the home is located.
• Borrower does not have to be a first-time homebuyer; however, neither the borrower nor their spouse can have owned residential real estate in the previous year from the date of the bid.
• Neither borrower nor their spouse can have previously purchased a home through the GNND program.
But what happens if the homeowner has to leave temporarily?
Are they now on the hook for that additional 50% of the purchase price? Maybe not.
Interruptions in the 36-month mandatory occupancy term may be allowed for hardship circumstances if the request is made in writing to HUD. The request must include:
• The reason(s) why the interruption is necessary;
• The dates of the intended interruption; and
• A certification that:
• The GNND program participant is not abandoning the home as his/her permanent residence; and
• The GNND program participant will resume occupancy of the home upon the conclusion of the interruption and complete the remainder of the 36-month owner-occupancy term.