HUD Good Neighbor Next Door (GNND) Program
Special Alert
The number of properties available is limited and the list of available properties changes weekly. Program limited to specific HUD-owned properties located in designated Revitalization Areas. Have to use a Real Estate Broker or Agent to buy a home. Bids for property must be submitted by a HUD-registered real estate broker.
Maximum Purchase Price
$472,030
Contact Info:
Nonprofit
Limitations
Credit Score Requirements
Minimum Credit Score: 620
Deferred Payments?
Fully forgiven after borrower completes 36 months of occupancy. At the end of the required three-year occupancy period, HUD’s second mortgage will be released provided (1) the participant has completed and returned the required annual certifications, (2) is not currently under investigation by the Office of Inspector General, and (3) is in compliance with all GNND regulations. A mortgage satisfaction will be filed with the participant’s local county recorder’s office. After the release is filed, a copy will be mailed to the property address. Thereafter, HUD’s second mortgage will not show up on the title to your property. After release, there is no further obligation to or restrictions imposed by the Department of Housing and Urban Development.
Accepted First Mortgage Type:
Freddie Mac, Fannie Mae, FHA 203(b), VA
Homeowners Education Class:
Not Required
Is Forgivable?
Fully forgiven after borrower completes 36 months of occupancy. At the end of the required three-year occupancy period, HUD’s second mortgage will be released provided (1) the participant has completed and returned the required annual certifications, (2) is not currently under investigation by the Office of Inspector General, and (3) is in compliance with all GNND regulations. A mortgage satisfaction will be filed with the participant’s local county recorder’s office. After the release is filed, a copy will be mailed to the property address. Thereafter, HUD’s second mortgage will not show up on the title to your property. After release, there is no further obligation to or restrictions imposed by the Department of Housing and Urban Development.
Location:
51 States Eligible Single Family homes located in revitalization areas (https://www.hud.gov/program_offices/housing/sfh/reo/abtrevt) are listed exclusively for sale through the Good Neighbor Next Door Sales program. Properties are available for purchase through the program for seven days. To search for properties listed for sale under the GNND program in your neighborhood, visit the HUD HomeStore’s Good Neighbor Next Door property search page at: https://www.hudhomestore.gov/Home/GNND.aspx -Click on a state in the U.S. Map to search for eligible properties. Dark blue states have properties available for sale under the GNND program. The light blue states do not currently have GNND properties available for sale. You may also use the Search Properties area; select Good Neighbor Next Door in the Buyer Type field. In this section, you can narrow down your search by entering information into any of the available data fields, i.e. street address, price range, number of bedrooms or bathrooms, etc. The system will select all properties that contain, in the corresponding fields, the letters or numbers that you entered. For additional information please contact the Asset Manager with jurisdiction over the property. To locate contact information for the Asset Manager please visit the HUD HomeStore website at https://www.hudhomestore.gov/Home/Index.aspx and click “Help” in the gray tool bar. The number of properties available is limited and the list of available properties changes weekly.
Income Limitations:
Yes (including household income) Income limits from HUD 2023 80% AMI guidelines
Maximum Assistance
50% of Purchase Price HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home.
Education Requirements Info:
Housing Counseling Information: https://www.hud.gov/i_want_to/talk_to_a_housing_counselor
Eligible Property Types:
Single Family Detached Condo Townhome/PUD
Income By Household Size:
$500 Earnest money deposit equal to 1% of list price but no less than $500 and no more than $2,000 to submit contract for a home.
Qualifying Ratios:
Determined by first mortgage product or lender.
