The Good Neighbor Next Door is an AWESOME program for:
Law Enforcement Officers
Teachers from Pre-Kindergarten through 12th Grade
Emergency Medical Technicians (EMT's)
It allows for HUD foreclosed homes to be prioritized to be sold to qualified individuals at HUGELY discounted rates. HUD offers these home, in the form of a discount of 50% off the listing price of the home. These dedicated individuals can then contribute to their community revitalization, all the while being homeowners for a minimum of 36 months as a primary residence.
You are a firefighter in Nampa, Idaho. A Good Neighbor Next Door home comes on the market for $150,000. That is the listing price, but as a Qualified Good Neighbor Next Door participaant, you will get the home for $75,000, that is right 50% off. Is there a catch, yes, you need to live in the home for 36 months. At time of closing, you will get a 2nd Deed of Trust and a 2nd Note for the Forgivable Amount, in this example, $75,000. This is called a "silent 2nd", which means there is no interest and no payments for 36 months. Once you live in the home for 36 months, that Deed of Trust and Note is forgiven and removed from the property!
For the $75,000 you do purchase the home for, you can get a FHA, VA or conventional loan for that amount. And if the home needs to be fixed up, FHA has a GREAT 203K Rehabilitation Loan, which means you can roll the costs of home repairs into the home loan.
More information about FHA loans