Good Neighbor Next Door Program
Law Enforcement Officers
Since Law Enforcement Officers can contribute to community revitalization, HUD offers a substantial incentive through the Good Neighbor Next Door Program. With this program, Law Enforcement Officers may be able to purchase a home at a 50% discount from the list price.
The number of Good Neighbor Homes is extremely limited, and the restrictions below do not apply to other homes purchased through the Officer Next Door Program.
Good Neighbor Next Door Program Snapshot:
- HUD determined revitalization areas
- HUD selected homes
- Must be a Police Officer (LOE) with arrest powers
- Must work in the local community
- 3-year minimum residency requirement
- Lottery style bid - winner chosen at random
- "Silent" second mortgage - forgiven after 3 yrs.
- All bids must be include a pre-approval letter
- "Silent" second mortgage
Good Neighbor Next Door Video:
Good Neighbor Next Door F.A.Q.'s
How does the Good Neighbor Next Door Program Work?
Eligible single-family homes located in revitalization areas are listed exclusively for sale through the Good Neighbor Next Door Program. Properties are available for purchase through the program for five days. (Bidding period)
Who Can Participate?
Law Enforcement Officers. You may participate in the Good Neighbor Next Door Program as a Law Enforcement Officer, if you are employed full-time by a law enforcement agency of the Federal Government, a state, a unit of general local government, or an Indian tribal government; and in carrying out such full-time employment, you are sworn to uphold, and make arrest for violations of Federal, state, tribal, county, township, or municipal laws. In addition, you must serve the same area where the home you is purchasing is located.
How do I Participate?
Good Neighbor Next Door homes are only available for five days. The first step is to get your PRE-APPROVAL. Once you are approved, your licensed Officer Next Door agent can provide a list of any Good Neighbor homes that become available in your area. Then, he or she will submit your interest in purchasing a specific home. If more than one person submits on a single home, a selection will be made by random lottery. You must meet the requirements for teachers and comply with HUD's regulations for the program.
HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" if you fulfill the three-year occupancy requirement. You may CHECK LISTINGS in your area to see what’s available right now, but please remember that bidding is only open 5 days. The number of properties available is limited and the list of available properties changes daily.
Can the Officer Next Door Program Benefits be combined with a Good Neighbor Next Door Purchase?
Yes. If you are the winning bidder, you may be able to combine some or all of your Officer Next Door benefits with the Good Neighbor Next Door purchase. This may include the Officer Next Door GRANTS, DOWN PAYMENT ASSISTANCE and other program benefits.
What if I work as Law Enforcement Support Staff?
ALL Law Enforcement Support Staff are eligible to participate in the grant and down payment assistance programs available through Officer Next Door. However, bidding on Good Neighbor Program homes is limited to law enforcement officers with arrest powers, as well as pre-K through 12 classroom teachers, firefighters and EMT's.
Why are there so few Good Neighbor Next Door Homes?
Good Neighbor homes are have limited availability for a number of reasons. First, HUD must already own the home, through the foreclosure of a HUD insured FHA loan. In addition, HUD is agreeing to forgive a significant amount of money on each transaction, when the silent second mortgage is released. Some areas could have more than one Good Neighbor home, while some entire states may not have any, at a given time.
What if I don't win the bid or there are no Good Neighbor homes available?
If the winning bid goes to another buyer or there are no Good Neighbor Next Door homes available in your area, you may still purchase ANY home on the market through the Officer Next Door Program and the above restrictions do not apply. You may also be eligible for certain GRANTS and DOWN PAYMENT ASSISTANCE programs through Officer Next Door.
What is the next Step?
Whether you are bidding on a Good Neighbor home or just looking to purchase a new home for your family, the first step is to complete the short PRE-APPLICATION and obtain your pre-approval. Your personal financial information is not collected on the pre-app and there is no credit check required.
Information updated October 2, 2021