We always talk about how policemen and firefighters are our everyday heroes. I think it’s safe to say that teachers and emergency medical technicians (EMTs) belong on that list as well. Unfortunately, their importance isn’t reflected in their pay. Owning a home may be a hard dream for many of them to reach. Luckily, the Good Neighbor Next Door Program allows them to attain their home ownership dreams at a discount. But how much of a discount? How about half off? Restrictions apply, of course.
What is the Good Neighbor Next Door Program?
The Good Neighbor Next Door Program offers police officers, firefighters, teachers (pre-K to 12th grade) and EMTs as much as 50% off of the list price for a home located in a revitalization area. These tend to be lower-income neighborhoods with high rates of REO properties and low home ownership. Many of our everyday heroes work within these areas. Vacant homes bring down home values. The Department of Housing and Urban Development wants to reverse this while helping our “good neighbors” get into a home at a huge discount.
Requirements for the Good Neighbor Next Door Program
To be eligible for the Good Neighbor Next Door Program, you must:
- be fully employed as a police officer, firefighter, teacher or EMT at the time of application,
- buy a home on the official HUD list of properties available for auction,
- live in the home for a minimum of 36 months, and
- sign a “silent second” mortgage for the other half of the official sale price. You will never have to pay a dime on the second mortgage provided you live in the home for at least 36 months as your primary residence. However, if you fail to fulfill the 36-month occupancy requirement, you may have to pay some of the “silent second” back to HUD.
How to Apply for the Good Neighbor Next Door Program
First, you need to search available HUD homes for auction in your state. Once you find a property you’re interested in, you have the option to find a Broker/REALTOR@ (if you aren’t already working with one) or submit an offer. You will need to hire a Broker or REALTOR@ to represent you throughout the home buying process. Buyers cannot currently own a home nor can they have owned a property for at least one year prior to submitting an offer. For financing, feel free to utilize FHA, VA, conventional or cash. All homes are sold “as is” (no home warranty provided). At the end of the three-year occupation requirement, you can sell your home and keep whatever profit you receive. For more information, please visit HUD’s frequently asked questions page here.
For more information on this and other St George homes for sale, please visit my Featured Listings page.