The Good Neighbor Next Door Program
There is great news for police officers, teachers, firefighters, and emergency medical technicians who want to purchase a home of their own. HUD has the Good Neighbor Next Door Program which offers people in these specific professions the opportunity to purchase a home for up to 50% off the normal price of the home. Certain areas of the country are designated to take part in this valuable home ownership program that helps certain “Good Neighbors” purchase homes for a large discount in order to revitalize neighborhoods. For a complete list of state specific homes, please follow the link.
The Good Neighbor Next Door Program is a way for HUD to offer benefits to certain professionals in order to get these people to move into neighborhoods that need more security in order to rehabilitate the neighborhood and these people support the community by serving as positive role models that can help revitalize the neighborhood. Some of the important facts to know about this valuable program include:
- Firefighters, emergency medical technicians, teachers, and police officers can purchase homes up to 50% off.
- Once the home is purchases you must live in the home for a minimum of 3 years before you can sell the home.
- Once you have lived in the home for the required 3 years you may sell the home for the full price and keep all of the equity in the home, including the 50% that was gifted to you through the program.
- You must purchase a home in specific areas that HUD has deemed revitalization areas which you can find by going to HUD
- You must sign a silent second mortgage that is in effect until your 3 year occupancy requirement is fulfilled. This means that you only have to ever make payments on the original mortgage you obtain for 50% the price of the home as long as you live in the home for the full 3 years. After this time the silent second mortgage lien will be removed and you are free to sell your home. If you sell the home before the 3 years is completed then the second mortgage for the 50% of the price of the home will be taken out of the sale proceeds of the home.
The Good Neighbor Next Door Program is a valuable benefit that certain people can use to get a jump start on home ownership and build wealth through free equity just for living in a home in a certain area for 3 years.
