FHA: The Good Neighbor Next Door Program

Attention Police Officers, Firefighters, Teachers and EMT’s. If you are in the market for a home you need to be aware of this specialized FHA loan program through HUD called the Good Neighbor Next Door Program. I am helping a couple of teachers right now with this loan and the outcome has been fantastic. Let me explain the mortgage loan details a little bit further. Basically if eligible for the program you can take advantage of an incentive to get into the home at a discount of 50% off the list price of the home. In return for the discount you commit to HUD that you will live in the home for 3 years as your primary residence.

Also you can use this program in conjunction with a 203K loan. Cherry Creek Mortgage Company has been doing these loans in conjunction with each other.

How the Program Works:

First of all the buyer must purchase the HUD home in a revitalization area. I always recommend getting your Real Estate Agent involved upfront and letting them know that you want to pursue these homes. Your agent can be a great guide with the HUD Homes available in your revitalization areas. You will also want to get your FHA mortgage pre-approved upfront before starting to look at these homes.

HUD does require that you sign a silent second for 50% of the value until you have fulfilled your 3 year occupancy requirement.

For further information, please feel free to contact me.