The Good Neighbor Next Door Sales Program

Written By: Glenn Michaels, Op-Ed Writer

The Good Neighbor Next Door Sales Program was established December 1, 2006. This program as many others are revised and/or clarified periodically by a HUD mortgagee letter. Mortgagee Letter 2013 – 20, dated June 12, 2013 was issued to further clarify the program.

This program enables eligible program participants to purchase, at a 50 percent discount from the list price, a specially designated HUD acquired single unit home that is located in a HUD designated Revitalization Area. In return, the eligible purchaser must:
• Own and live in the home as his/her sole residence for a term of 36 months, and
• Execute a note and second mortgage on the home, payable to HUD, for the difference between the list price and the discounted sales price.

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To qualify to purchase a home through the GNND Sales Program, a potential purchaser must live and work in the community the property is located in and be employed as a:
• Law Enforcement Officer;
• Pre – kindergarten through 12th Teacher; or
• Firefighter/Emergency Medical Technician.

The eligible purchasers may search for properties available under the GNND program at:

MIP for the GNND program is only on the first mortgage note and mortgage. The MIP is not on the required second note and mortgage.

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The required thirty – six month owner – occupancy term shall commence either thirty (30), ninety (90) or one hundred eighty days (180) days following closing depending on the amount of required home repairs. HUD may allow interruption to the occupancy term when necessary to prevent hardship, but only if the borrower submits a written and signed request to HUD.

If by chance a property is listed for $25,000.00 or less the eligible participants can acquire the home for as little as $100.00. If the property is listed for more than $25,000.00 then eligible participants can acquire the property at a fifty percent discount.

This is an attempt by HUD to stabilize communities all over the United States by putting good income borrowers in areas in need of revitalization.

About The Author

Glenn Michaels - As an op-ed writer, Glenn Michaels is a mortgage underwriting instructor for CampusUnderwriter ( As a BBA & FHA DE Underwriter, Glenn is a Pace University graduate who also graduated from New York University’s School of Mortgage Finance. Glenn has conducted numerous training classes and has worked in the mortgage banking industry for 38 years. 

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