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Half-Price Homes! Good Neighbor Next Door – The Rare Gem

Friday, July 19, 2013   /   by Rummy Dhanoa

Half-Price Homes! Good Neighbor Next Door – The Rare Gem

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).  

Highlights:

  • 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.
New York Real Estate Experts
Team Of eXp Realty
2150 Central Park ave, Suite#209
Yonkers, NY 10710
914-920-2299
914-920-2289
Office: 888-270-0672

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The information appearing herein has not been verified by the Hudson Gateway Multiple Listing Service, Inc. or the Hudson Gateway Association of Realtors, Inc. or by any individual(s) who may be affiliated with said entities, all of whom hereby collectively and severally disclaim any and all responsibility for the accuracy of the information appearing at this web site, at any time or from time to time. All such information should be independently verified by the recipient of such data. This data is not warranted for any purpose.

©2020 Hudson Gateway Multiple Listing Service, Inc. All rights reserved.

The data relating to real estate for sale or lease on this web site comes in part from MHMLS. Real estate listings held by brokerage firms other than eXp Realty - New York Real Estate Experts are marked with the MHMLS logo or an abbreviated logo and detailed information about them includes the name of the listing broker. The information appearing herein has not been verified by the Mid-Hudson Multiple Listing Service, Inc. or by any individual(s) who may be affiliated with said entity, all of whom hereby collectively and severally disclaim any and all responsibility for the accuracy of the information appearing at this web site, at any time or from time to time. All such information should be independently verified by the recipient of such data. This data is not warranted for any purpose. ©2020 Mid-Hudson Multiple Listing Service, Inc. All rights reserved.