Good Neighbor Next Door Sales Program Changes

This program offers homes for sale at 50% off of the listing price in approved areas, for fulltime Law Enforcement Officers, Teachers, Firefighters and Emergency Medical Technicians.

• All bids must now be submitted through a HUD certified real estate broker.
• The buyer must certify their continued employment in the qualifying profession for at least one year after purchase.
• An earnest money deposit of 1% of the list price (but no less than $500 and no more than $2000) will be required when the contract is signed.
•  Neither the buyer not his/her spouse may have owned any residential real property during the year prior to the date of submission of their bid.
• HUD will not pay the closing costs or selling broker’s commission on these sales.
• The second mortgage (amount of discount) will reduce by 1/36^th on the last day of each month of occupancy.
• The amount of the mortgage may not exceed the discounted sales price of the home if the buyer uses conventional financing. If the approved buyer uses FHA financing, the buyer may finance reasonable and customary closing costs with the FHA insured mortgage.  The amount of the FHA insured mortgage may not exceed the discounted price of the home plus:

1.      The closing costs; and

2.      The costs of rehabilitating and/or improving the home, where purchase of the home is being financed with an FHA insured 203(k) rehabilitation loan.