Good Neighbor Next Door Program
Full-time teachers, law enforcement officers, firefighters and EMTs can buy designated HUD homes at 50 percent off the list price.
Quick answer
Saxton Mortgage does. At least one FHA program we offer allows Good Neighbor Next Door purchases. The program lets a full-time law enforcement officer, teacher, firefighter or emergency medical technician buy a designated HUD home in a revitalization area at a 50 percent discount and live in it. Closing costs can be included in the loan, and the purchase can be a standard FHA loan, one with a repair escrow, or a 203(k) renovation loan.
Who can buy through Good Neighbor Next Door
HUD secures the discount with a second mortgage, released after 36 months of qualifying occupancy.
- A full-time officer with a federal, state, local or tribal law enforcement agency, sworn to make arrests, whose job serves the area where the home is located.
- A full-time teacher at a state-accredited public or private school serving pre-kindergarten through grade 12 students from that area.
- A full-time firefighter or EMT with a government fire department or emergency medical services unit serving that area.
- Employed full-time in one of those roles when you bid and when you close, and intending to stay in it at least one year after closing.
- Neither you nor your spouse owned any residential property in the year before your bid.
- Neither you nor your spouse has bought a home through the program before.
Half off the list price
Built for public servants
A 36-month occupancy term
The discount is a second mortgage
Repairs can be financed
Closing costs can be included
What Is Good Neighbor Next Door?
It is a HUD sales program that lets eligible public servants bid on designated single-unit HUD homes in revitalization areas at a 50 percent discount from the list price.
Good Neighbor Next Door is a HUD sales incentive for full-time law enforcement officers, teachers, firefighters and emergency medical technicians. You bid the full list price on a designated single-unit HUD home in a HUD-designated revitalization area, and HUD applies a 50 percent discount to the sales price. Bids come in during a seven-day lottery period, and HUD picks the winning bidder at random. Teachers, firefighters and EMTs must buy in the community where they work.
The discount comes with conditions. At closing you sign a second mortgage and note to HUD for the difference between the list price and the discounted price. You must live in the home as your only residence for 36 months and certify that every year. If you sell or stop living there before the 36 months are up, you owe HUD the amount due on that second mortgage.
You can pair the discount with FHA financing as a standard FHA loan or an FHA 203(k) rehab loan, and customary and reasonable closing costs can be included in the loan amount. At least one FHA program we offer accepts Good Neighbor Next Door purchases. See our buying a HUD home page.
Why choose Saxton for Good Neighbor Next Door
This page is for teachers, law enforcement officers, firefighters and EMTs looking at HUD homes in the communities they serve.
Half Off The List Price
Eligible buyers bid the full list price, and if HUD picks your bid, it applies a 50 percent discount.
Full-Time Work Required
You need full-time work in an eligible role when you bid and when you close.
Live There 36 Months
The home must be your only residence for 36 months, certified every year.
The Discount Is A Lien
HUD takes a second mortgage for the discount, owed if you leave early.
Fixer-Uppers Can Qualify
Purchases can be financed with an FHA 203(k) rehab loan that covers repairs.
Active Duty Is Considered
HUD may grant occupancy exceptions to participants called to active duty who must temporarily relocate.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about Good Neighbor Next Door.
Saxton Mortgage does. At least one FHA program we offer allows Good Neighbor Next Door purchases. The program lets a full-time law enforcement officer, teacher, firefighter or emergency medical technician buy a designated HUD home in a revitalization area at a 50 percent discount and live in it. Closing costs can be included in the loan, and the purchase can be a standard FHA loan, one with a repair escrow, or a 203(k) renovation loan.
Good Neighbor Next Door is open to full-time law enforcement officers, pre-K through 12 teachers, firefighters and emergency medical technicians whose work serves the community around the HUD home. Full-time employment is required both when you bid and at closing, and you certify an intent to keep that job for a year or more after closing.
The Good Neighbor Next Door discount is 50 percent off the list price of a designated single-unit HUD home in a HUD-designated revitalization area. You bid the full list price, the discount is applied to the sales price, and you sign a second mortgage and note for the difference.
Yes, you must live in a Good Neighbor Next Door home as your sole residence for 36 months and certify that every year on form HUD-9549-D. The term starts 30, 90 or 180 days after closing, depending on how much repair work the home needs before move-in.
If you sell or stop living in a Good Neighbor Next Door home before the 36-month term ends, you owe HUD the amount due on the second mortgage as of the date you sell or vacate. Skipping the annual certification can lead to an on-site investigator visit or a referral to HUD’s Office of Inspector General.
Yes, Good Neighbor Next Door purchases can use FHA financing under Section 203(b), 203(b) with a repair escrow, or 203(k) for a home that needs work. Customary and reasonable closing costs may be added to the FHA mortgage amount.
No, if you or your spouse owned any residential real property during the year before you bid, you cannot buy through Good Neighbor Next Door. You also cannot use it if you bought a house through the program before.
HUD may grant an exception to the Good Neighbor Next Door occupancy rule when you are called to active duty, and SCRA-protected service members can request the interruption as soon as practicable instead of 30 days ahead. You must notify HUD when duty moves you outside the commuting area of the home.
Find out what you qualify for
Tell us your role and the area you serve, and we will help you line up FHA financing before you bid on a Good Neighbor Next Door home.
Get Pre-Qualified- U.S. Department of Housing and Urban Development, FHA and housing resources
- U.S. Department of Housing and Urban Development, FHA mortgage insurance premiums
Loan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.