What Is the Good Neighbor Next Door Program and Can It Help You Buy a Home?
Written by
Aja McClanahan
Edited by
Joe Evans
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What is the Good Neighbor Next Door Program and how exactly does it work?
Designed for public servants — teachers, law enforcement, firefighters and EMTs — it offers a 50% discount on HUD-owned homes in revitalization areas. That means you could get a quality home with a minimal down payment, all while serving the community you love.
Whether you’re just learning about it or trying to figure out if you qualify, this guide breaks down everything you need to know: how the program works, who qualifies, who doesn’t and the steps you can take to get started.
What Is the Good Neighbor Next Door Program?
The Good Neighbor Next Door Program is a U.S. Department of Housing and Urban Development (HUD) initiative. It gives eligible public servants a major discount on homes in areas HUD wants to revitalize.
Why this matters:
- Huge savings: 50% off the list price
- Pocket-friendly down payment: As little as $100 with an FHA loan
- Community impact: Encourages public servants to live and serve in revitalizing neighborhoods
The goal? Help community heroes like you plant roots in the same neighborhoods you protect, teach in or care for.
Who Qualifies for the Good Neighbor Next Door Program?
To be eligible, you must work full time in one of these roles:
- Law enforcement officers
- Firefighters
- Emergency Medical Technicians (EMTs)
- Teachers (pre-K through 12th grade only)
But it’s not just about your job title. You also need to:
- Work in the same area (or close by) where the home is located
- Commit to living in the home for at least 36 months as your primary residence
- Not having owned a home in the past 12 months
- Use an approved FHA or conventional mortgage
Stat to Know: According to HUD data, the average discount through the Good Neighbor Next Door program saves qualifying buyers tens of thousands of dollars, making it one of the most impactful housing benefits available to public servants.
Who Would Not Qualify for a Good Neighbor Next Door Loan?
Not everyone can take advantage of the program, however. Here are some examples of folks who don’t qualify:
Ineligible Job Roles:
- Part-time workers or volunteers
- School staff who aren’t classroom teachers
- Administrative or clerical employees
- Private-sector roles — even if they support the community
Other Disqualifying Factors:
- Owning a home within the past 12 months
- Not meeting the 3-year occupancy requirement
- Planning to flip or rent out the home instead of living in it
Remember: HUD enforces the rules strictly. If you’re caught violating the program’s terms, you could lose your home or face repayment of the discount amount.
Benefits of the Good Neighbor Next Door Program
If you do qualify, you’ll have a wide array of perks to take advantage of. Here’s a breakdown:
Financial Perks
- 50% discount on the list price
- $100 down payment option for FHA loans
- No interest or payments on the discounted portion if you meet residency terms
- Lower monthly mortgage payments = more room in your budget
Emotional and Community Value
- Live where you work and serve
- Help revitalize neighborhoods that need stable, long-term residents
- Build equity and generational wealth while helping your community thrive
How the Good Neighbor Next Door Program Works
Here’s a step-by-step breakdown if you’re eligible:
Step 1: Find an Eligible Home
HUD lists homes in “revitalization areas” — neighborhoods that need investment and growth. New properties are listed weekly and stay open for bids for only 7 days, so timing matters.
You can find listings on the official HUD Home Store website.
Step 2: Submit Your Interest
- Work with a HUD-registered real estate agent
- Submit your interest during the 7-day window
- If multiple people apply, HUD holds a random lottery to choose the buyer
Step 3: Move In and Stay Put
Once you close, you’ll sign a silent second mortgage for the 50% discount — but don’t worry, you won’t pay interest or make payments as long as you live there for 36 months. After that, the discount is yours, free and clear.
Stat to Know: More than 5,000 homes have been sold through the Good Neighbor Next Door program since its inception, with average buyer savings exceeding $30,000, according to HUD.
Steps to Apply for the Good Neighbor Next Door Program
Pre-Application
- Verify full-time employment in a qualifying role
- Get mortgage preapproval and $100 down via FHA
- Register with a local HUD-approved real estate agent
Application Process
- Search HUD listings in your area
- Express interest during the 7-day window
- If chosen via lottery, place earnest money deposit (1% of list price)
- Close on the home
- Move in and file annual certifications for three years
Final Take to GO: Is the Good Neighbor Next Door Program Right for You?
The Good Neighbor Next Door Program offers a powerful path to homeownership, especially if you’re a teacher, first responder or law enforcement officer looking to serve the community while gaining a solid financial foothold.
Key Takeaways:
| Element | Why It Matters |
|---|---|
| 50% Home Discount | Saves you tens of thousands of dollars |
| $100 Down Payment | Low upfront cost with FHA financing |
| 3-Year Residency Rule | Ensures community investment |
| HUD-Owned Listings Weekly | Stay prepared and act fast |
Ready to learn more?
- Compare FHA vs conventional refinancing for repair projects
- Read our guide on First-Time Homebuyer Resources
- Visit HUD’s Good Neighbor Next Door page for the latest listings
If you’re eligible, serious about staying power and ready to help revitalize your community, the Good Neighbor Next Door Program could be your best route to affordable homeownership.
FAQs
- What is the Good Neighbor Next Door program?
- It’s a HUD initiative that gives a 50% discount on select homes to eligible community workers.
- Who qualifies?
- Full-time teachers, law enforcement, firefighters, and EMTs serving their local community.
- What are the benefits?
- A major discount, low down payment, and support for housing in underserved neighborhoods.
- Are there specific requirements?
- You must live in the purchased home for 36 months, work full-time in a qualifying role, and be mortgage-ready.
- How can I find available properties?
- Search HUD’s official HUD Home Store website and register with a HUD-approved broker.
Data is accurate as of July 15, 2025, and is subject to change.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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- Department of Housing and Urban Development. "HUD Good Neighbor Next Door Program."
- Department of Housing and Urban Development. "HUD Good Neighbor Eligible Participants."
- Department of Housing and Urban Development. "GNND Good Neighbor Mortgages."
- Department of Housing and Urban Development. "FHA Revitalization Area Sales Programs."
- FDIC. "Good Neighbor Next Door."
