FHA Good Neighbor Next Door
The FHA good neighbor next door program allows law enforcement, teachers (pre-kindergarden through 12th grade), firefighters, emergency medical technicians to purchase HUD REO properties in certain HUD Revitalization areas at a 50% discount.
Revitalization Areas are HUD-designated geographic areas authorized by Congress under provisions of the National Housing Act. Revitalization Areas are intended to promote "the revitalization, through expanded homeownership opportunities, of revitalization areas."
The criteria for designating an area as a Revitalization Area relate to:
- Household Income,
- Homeownership Rate, and
- FHA-insured mortgage foreclosure activity.
HUD-owned single family properties located in a Revitalization Area are eligible for discounted sale through special programs, including:
The 50% discount is given in the form of a second lien that is forgiven as long as the borrowers stay in the home as little as 36 months. Additional requirements include:
- Must be law enforcement officers, teachers, firefighters or emergency medical technicians
- May not have owned residential property the previous one year prior to purchasing the HUD Repo
- Must agree to live in the property 36 months
- Refer to the Good Neighbor Eligible Participants page for further details
- This Program may be submitted in conjunction with the $100 down program
For more information on HUD Single Family Homes available the Good Neighbor Next Door Program go here. (GNND) Look under single family homes, Asset Control Areas and the GNND program.