FHA Good Neighbor Next Door Program

The Good Neighbor Next Door is an FHA loan program that is geared toward creating affordable homes for public service men and woman.  FHA allows public service employees to buy in revitalized areas at a substantial discount. 

Who qualifies for this program?

·        Law enforcement officers – A law enforcement officer can utilize this program so long as he or she is employed full time by a law enforcement agency of the federal government, a state, local government or Indian Tribal government.  During your full-time employment, you must have sworn to uphold, and make arrests for violations of, federal, state, tribal, county, township, or municipal laws.

·        Firefighters – Professionals in the firefighting field may participate if they are employed full-time with a fire department responder unit of the federal government, a state, general local government, or an Indian tribal government.  FHA does require these individuals to buy a home in the area that their service company is located.

·        Teachers – A teacher must be employed as a full-time employee with a state accredited public or private school that provides direct services to students in grades pre-kindergarten through 12.  The home must preside within the area of the school where they teach.

·        Emergency medical technicians – an EMT must be employed full-time by an emergency medical services responder unit of the federal government, state, general local government, or an Indian tribal government.  Again, the home they are buying must be located in the area they service.

Where can I buy GNND homes?

There are designated areas in the state of Maryland that qualify for this program. 

• Prince Georges County
• Anne Arundel County
• Baltimore County
• Howard County
• Montgomery County

FHA lists homes for sale as exclusive GNND homes.  Once the home is listed as a GNND home, the service worker has 5 days to submit an offer.  If multiple offers come in by other service workers, then a contract will be selected by random lottery.  If you are interested in writing a contract, the home will have instructions in the listing or the home itself. HUD only allows a GNND home to be purchased as the service worker’s primary residence.  They cannot be bought for investment property use.  HUD also requires the buyer to live in the property for at least 36 months prior to selling.  They will send out yearly occupancy certifications to verify this.