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This is what to expect when buying a Good Neighbor Next Door home.
Visit our FAQ section to learn details concerning the GNND program.
Click on the "Schedule an appointment" button to connect with us.
If you meet the qualifications, we will enter your name in the drawing before the deadline. HUD will randomly select a winner and two backups. You can't bid above or below list price.
After your name is selected, you will sign a contract with HUD. After HUD approval, you will have 15 days to inspect your home. Closing will be 30 - 60 days after contact approval.
If you are qualifying as an educator, you must be a full-time, state-certified classroom teacher. Support staff do not qualify for this program. Additionally, you must teach in the school district where the home is located or in an accredited charter or private school.
No, this is a random drawing where every qualified prospect has an equal chance of being selected. HUD randomly selects winners from the list of social security numbers of those who have entered the drawing.
HUD requires that neither you nor your spouse, if married, have had ownership interest in a residential property in the past 12 months. Therefore, if you sold and closed on your home more than 12 months ago and have not purchased a new one since, you will qualify for the GNND program.
After three years of occupancy, HUD will release your GNND second mortgage. At that point, you have several options. You can choose to use the property as a rental investment, continue living in it as your primary residence, or sell the home and keep the profits.
The lender will give you an estimated breakdown of closing costs. Included in these costs is the buyer premium, which will be paid to the Realtor. HUD mandates that participants use a HUD-certified broker and requires GNND participants to cover the broker’s fees. This amount can be included in the buyer’s FHA mortgage.
No, HUD designates which homes qualify for the GNND program. Homes in their inventory located in “revitalization areas” are eligible for the program. These areas typically have a higher-than-average FHA foreclosure rate and a higher renter-to-homeowner ratio.
The goal of the program is for contributing members of our society to invest in and bring stability to certain neighborhoods. To achieve this, HUD requires participants to own and occupy their GNND home for three years.
There are incentives for participants to use FHA financing through their lender of choice. Specifically, your down payment is reduced from 3.5% to $100, and you can finance all of your closing costs into your mortgage.
If your social security number is selected in the GNND electronic drawing, you will need to sign a contract, provide a prequalification letter, and submit an earnest money check equal to 1% of the home’s list price (before the 50% discount). The earnest money has a minimum of $500 and a maximum of $2,000. This earnest money is held with the buyer’s title company and will be credited back to the buyer at closing.
Text or call Mike White if you have questions regarding the Good Neighbor Next Door program or if you would like to enter the GNND drawing.
Mike White – Realty Hub – (918) 512-1818
The purpose of www.usahuds.com is to both educate and connect. We educate you on the Good Neighbor Next Door program and connect you with local real estate agents and brokers who have experience with the program. We are not affiliated with HUD and are not the listing broker for the properties that are included on this site. FL RE SA: Michael White, Lic #3480430, Realty Hub. An Equal Opportunity Company. Equal Housing Opportunity. All rights reserved.
