The HUD Good Neighbor Next Door Program Can Help
For many Guard Soldiers, working for State or local government is not limited to their military service but is also a part of their civilian occupation. Those wanting to buy a home, who also make their civilian living making a difference for good in the community, the U.S. Department of Housing and Urban Development (HUD)’s Good Neighbor Next Door (GNND) program offers an unmatchable opportunity.
The GNND program allows for the purchase of a home at a 50 percent discount through HUD’s supply of previously foreclosed single-family homes. Soldiers who are employed full time as a law enforcement officer, firefighter, emergency medical technician or a Pre-K – 12 teacher in a public or private school may qualify for the program.
The program, which began in its current form in 2006, is specifically for community service employees who want to both become homeowners and improve the quality of life in a revitalization area deemed by HUD as a distressed urban community. The idea behind the program is that those receiving the benefit should be the same people already working in occupations that serve important needs of the community.
What are Revitalization Areas?
According to the U.S. General Services Administration’s Data.gov website, revitalization areas are HUD-designated neighborhoods in need of economic and community development, and where local government has already made a commitment to revitalization efforts. Three aspects are considered when designating an area for revitalization: household income, homeownership rate and the Federal Housing Authority (FHA)-insured mortgage foreclosure activity.
HUD has identified revitalization neighborhoods throughout the country, so program recipients are not limited to any specific area or region of the country.
Program Details
Firefighters and EMTs must serve in the jurisdiction where the house is located. Teachers must work in a school in the neighborhood boundary where the house is located. In addition, homeowners must commit to living in the new home as their sole residence for at least 36 months, and must complete a signed certificate each year, verifying to such.
New homes are listed on HUDHomeStore.com each week. Homes are sold “as is,” with no warranty. For those who qualify, applying for a home is as simple as bidding the asking price by the posting deadline. If more than one potential buyer bids on the same property, the ultimate homeowner is selected by lottery.
The program requires buyers to sign a second mortgage and note for the amount discounted off the original price of the home, but no payments are made on the second mortgage if the homeowner follows all program requirements. As long as the homeowner fully complies with the rules of the program, the second mortgage is completely forgiven after the first 36 months in the home.
Recipients do not need to be first-time home buyers to be eligible for GNND, but they are not allowed to own, or have owned, residential property for at least a year before submitting a bid for property.
For more details on the Good Neighbor Next Door program, visit HUD.gov/program offices/housing/sfh/reo/goodn.
By Staff Writer Pamela DeLoatch
