The Good Neighbor Next Door

The Good Neighbor Next Door is a program offered through HUD (U.S. Department of Housing and Urban Development). It offers a 50% discount of the list price of a home eligible for certain occupations – teachers, police, firefighters and EMTs. The condition is that you must live in the home for 36 months. HUD requires you to take out a silent second mortgage for the other half of the listing price but no payments are required and as long as you stay in the home for 36 months, the second mortgage is forgiven. If you do not stay for 36 months, HUD will require that you pay a pro-rata on the portion of the second mortgage. 

The number of properties eligible for the Good Neighbor Next Door program is limited and located in areas that HUD would like revitalized. The homes are typically only listed for 7 days and are a lottery system if there are multiple offers (which there are in Denver!) The Good Neighbor Next Door  is a great program to consider. Currently in the Denver metro area there are very few homes available through the program. In fact, today there are no listings eligible for this program. As you can imagine, when a home does come on the market eligible for The Good Neighbor Next Door program, it goes very quickly. If you are in an occupation that is eligible for this program and have time and patience to find a home, this is a great option. Search for HUD homes (including those for The Good Neighbor Next Door) here. In addition, be sure you choose an agent that is both familiar with the Good Neighbor Next Door program and the HUD bidding process.