What is the Good Neighbor Next Door Program?
First things first. The GNND (Good Neighbors Next Door) sales program is a program created by the US Housing and Urban Development section created to “revitalize” certain areas. Teachers, EMTs, firefighters, and law enforcement officers are all potential employees who may take part in this amazing discount program.
HUD offers a 50% discount on homes within revitalization areas to the previously mentioned employees. HUD designates “revitalization” areas authorized by Congress under the National Housing Act. This is done to promote homeownership in areas that are lacking for any reason. Criteria such as household income, rate of homeownership, and foreclosure activity on mortgage loans that are FHA-insured.
Who Qualifies and where are the revitalization areas?
There are guidelines under the professions that are eligible. Law enforcement officers must be full-time employees for the government, state, local government unit, or tribal government. These officers must be sworn to uphold the laws of their profession and arrest anyone who is in violation of those laws. Teachers must also be working full-time for a state-accredited public or private school. The school the teacher works at must be the school serving the area they are purchasing a home in. Emergency medical technicians and firefighters must also be full-time employees of the state, government, or tribal community.
A requirement for the Good Neighbor Next Door Program is that the buyer signs a second mortgage for the discounted amount. This is sort of insurance for the other requirement that the buyer has to use the home as their sole residence for 36 months. As long as it is made the sole residence for the 3 years, then no interest or payment needs to be made on the second mortgage.
Financing for GNND program?
VA loans, FHA loans, conventional mortgages, and cash can all be used to pay for a home under this program. Local buyers agents can provide more details and answer questions about if a buyer is eligible or if their loan will work through this program.
The Good Neighbor Next Door Sales Program is an amazing program for any buyer who qualifies.