7 Differences between Good Neighbor Next Door and Teacher Next Door Part of the Good Neighbor Next Door series
Over the past twelve months, we’ve seen a dramatic increase in home prices. Wonderful news if you already own a home. If you’re home shopping, on the other hand, the search could prove a bit more challenging.
While HUD’s Good Neighbor Next Door program offers an amazing opportunity to a fortunate few, we’ve found the Teacher Next Door Program to be more inclusive, less restrictive and provide substantial benefits to thousands of program participants each year.
Here are seven key differences between Good Neighbor Next Door and the Teacher Next Door Program.
1. Half Price Homes (50% off value) – Only Good Neighbor Next Door homes are 50% off.
Although you may purchase any home on the market through Teacher Next Door, including a Good Neighbor home, the 50% discount only applies to the homes selected by HUD for the Good Neighbor Program.
HUD’s Good Neighbor Next Door program offers homes at 50% of the current appraised value. If there is a Good Neighbor Next Door home available in your work area, and you meet the other eligibility requirements, you may be able to purchase the home for only $100.00 down, using an FHA loan. Then, you may also use the Teacher Next Door Grant to help pay all or part of your closing cost. 2. Location – Only Good Neighbor Next Door homes are in specific areas. Through Teacher Next Door, you may purchase any home you wish, in the area of your choosing.
Good Neighbor homes are located in revitalization areas, as determined by HUD. When HUD owns a home in these areas, typically through foreclosure, they may choose to make it available for the Good Neighbor Program.
Teacher Next Door is the largest national home buying program in the United States and not operated by HUD. As such, you may purchase any home on the market and are not required to work in the same area as the home.
3. Eligibility – Good Neighbor Next Door is limited to four very specific job titles; Teacher Next Door does not have that restriction. Thus, is much more inclusive.
The Good Neighbor Next Door program requires that all buyers have one of four very specific job titles: Law Enforcement Officer (with arrest powers), Classroom Teacher (Pre-K through 12th grade), Firefighter or Emergency Medical Technician. (EMT) The Teacher Next Door Program offers grants, down payment assistance and other benefits, and is available to all teachers, nurses, law enforcement, firefighters, EMT’s, government employees and military personnel. In addition, these same benefits are extended to all public servants that serve in any of these categories, regardless of their job title or function. For example, a school secretary, nursing assistant, or 911 dispatcher.
4. Availability – Good Neighbor Next Door homes are extremely limited in their availability, as you might imagine, being half price. In some states, there are urban areas with several Good Neighbor homes available. Whereas many other states may have zero Good Neighbor homes at any given time. When you bid on a Good Neighbor home, it is a lottery style bid. So, if there are 50 bidders, you will have a 1 in 50 chance of having the winning bid. With Teacher Next Door, there are usually plenty of homes available, because you may choose any home, in any neighborhood.
5. Housing Grants - Teacher Next Door offers participants the opportunity to receive GRANTS and other home buying benefits. Good Neighbor Next Door is not a grant program and HUD does not offer grants for single family home buyers. 6. Down Payment Assistance – Teacher Next Door offers down payment assistance. Good Neighbor Next Door does not.
Teacher Next Door has down payment assistance programs available in all 50 states. These programs may include, Home in Five Advantage, CalPlus, Colorado FirstStep, Texas 5-Star Advantage, Military Heroes, First Home, Chenoa and Unison, just to name a few. When you apply, a Next Door Certified Program Specialist will help you determine which loan and assistance programs will help you receive the maximum benefits. Programs are each structured differently, and eligibility varies by city and state.
7. Additional Restrictions - Good Neighbor Next Door adds the following restrictions, Teacher Next Door does not.
Residency Commitment - If you are the winning bidder on a Good Neighbor home, HUD requires a three-year residency commitment, and the home must be located in the same area where you work. Teacher Next Door does not have any limitations when it comes to residency. First Time Home Buyer Status - Good Neighbor Next Door requires you to be a first-time home buyer, Teacher Next Door does not. First time home buyer typically means having not owned a home in the past three years. While Teacher Next Door does not have this requirement, some of the down payment assistance programs may have this limitation.
Please keep in mind that bidding on Good Neighbor homes is only open for 7 days, and all bids must contain a pre-approval.
To learn more and check current availability of Good Neighbor Next Door homes, you may click the Good Neighbor Next Door link below.
Good Neighbor Next Door
Next Door Program Reviews
Next Door Programs:
Teacher Next Door
Nurse Next Door
Officer Next Door
Firefighter Next Door
Public Servant Next Door
Soldier Next Door