Good Neighbor Next Door Program

Since teachers can contribute to community revitalization, HUD offers a substantial incentive through the Good Neighbor Next Door Program. With this program, teachers 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 Teacher Next Door Program

Good Neighbor Next Door Program Snapshot:

  • HUD determined revitalization areas
  • HUD selected homes 
  • Must be a Pre-K through 12 classroom teacher
  • Must teach at the local school
  • 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?

Teachers Pre-K thru 12.  You may participate in the Good Neighbor Next Door Program as a Teacher, if you are employed as a full-time teacher by a state-accredited public school or private school that provides direct services to students in grades pre-kindergarten through 12. In addition, the public or private school where you are employed as a teacher, must serve students from the area where the home you are 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 Teacher 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 Teacher 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 Teacher Next Door benefits with the Good Neighbor Next Door purchase.  This may include the Teacher Next Door GRANTS, DOWN PAYMENT ASSISTANCE and other program benefits.

What if I'm a school employee, but not a classroom teacher?

ALL school and district employees are eligible to participate in the grant and down payment assistance programs available through Teacher Next Door. However, bidding on Good Neighbor Program homes is limited to pre-K through 12 classroom teachers, law enforcement officers, 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 Teacher Next Door Program and the above restrictions do not apply.  You may also be eligible for certain GRANTS and DOWN PAYMENT ASSISTANCE programs through Teacher 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 December 1, 2023