Good Neighbor Next Door Program (50% off homes)
- Adam Garrett
- May 6, 2022
- 1 min read
Updated: Apr 7, 2024
Good Neighbor Next Door enables full-time “EMTs, teachers, firefighters, & law enforcement" to get effectively 50% off on certain owner-occupant HUD home purchases.
Main Eligibility Rules
1. full-time “EMTs, teachers, firefighters, and law enforcement" in the same city or county that you are purchasing (although I've also read from a 3rd party that there is a miles from work restriction; HUD states "locality" which is ambiguous).
2. Owner Occupant Only 3. "you may not own any other residential real property at the time you submit your offer to purchase a home; and for one year previous to that date."
4. No income or asset restrictions!
Main Restrictions
Buyer must live in the home for at least 36 months
No seller-paid closing cost assistance is allowed w GNND, but closing costs can be financed if paired with a $100 down payment FHA loan that is possible on GNND properties
If back taxes are owed, HUD will not pay. They will not repair anything on the HOA inspection.
How Does it Work
Bid 100% of the list price - after 36 months of living there the silent second mortgage for 50% of the purchase price will be removed. If there are multiple offers, there will be a lottery. Bidding higher than list price doesn't help your chances.
How Often Does it Occur in VA & What are Past Examples?
How often does it occur?
It is not very often, but often enough to create a saved search if you’re eligible.
List of past examples of Good Neighbor Next Door 4/19-11/21 categorized by region, city, and date & including other information (i.e. price, sq ft, beds, baths, year, etc.): The # of HUD foreclosures has gone down in 2020/2021, so the # of GNND #s have gone down with it.
If you'd like the listings from SE VA MLS to see pictures and more details and you're a client of mine, let me know. I'd post them here, but the links for most SE VA MLS expire after a short time.
Info From HUD Directly
Here it is on the HUD site directly: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/reo/goodn/gnndabot https://www.hud.gov/program_offices/housing/sfh/reo/goodn/gnndfaq
No Buyer's Agent Commission Provided by HUD
Buyers’ agents do not get a commission for it but I still let people know about the program out of my love for deals, desire to serve buyers’ best interests, & recognition that business is not just about making a quick buck, but involves long-standing relationships & referrals. Buyers that want to use me as their buyer’s agent for it would pay me the greater of $3k or 2% of the contract price, which is usually (i.e. not a $30k property) less than the typical 3% commission.
How to Find Available Properties
While these typically go on MLS, they don't always, and for these properties, I highly encourage a direct search rather than relying on MLS.
To find properties available:
1. Go to HUD Homestore.
2. Select your state.
Input either your city/county name OR Good Neighbor Next Door:
As of 6/10/23 there are no available properties throughout VA, & I'm not seeing any in the 10 most populous US states, making me wonder if the program is still going:
In order to have the option to save a search, you'll need to create a free account & sign in. Unless there are search results in your criteria, you won't be able to save a search, thus my recommendation to save based on GNND criteria rather than based on your city/county.
The first time that you find that there's a property in your city/county, even if you rule it out despite the 50% off nature of it, I suggest establishing a new search based on both Good Neighbor Next Door criteria and your city name since you should be able to save that specific search for the first time.
Set up email to text alerts using this method.
Images courtesy HUD Homestore
(image courtesy Hudhomestore.com)
Related:
Comments