What are the requirements for a teacher to buy a HUD Home under the Good Neighbor Next Door (GNND) program?

Under HUD’s Good Neighbor Next Door (GNND) Sales Program, an eligible teacher may purchase a designated single-unit HUD Real Estate Owned (REO) Property in a Revitalization Area at a discount of 50 percent off the list price. 
The bid must be placed for the full list price; however, the Asset Manager (AM) will ensure that the buyer is eligible to participate in the GNND program and will reflect the discount in the accepted sales price.

At the time the bid is submitted and at the time of closing, the teacher must be employed as a full-time teacher by a state-accredited public school or private school that:

  • provides direct services to students in grades pre-kindergarten through 12; and
  • in the normal course of business, serves students from the locality where the home is located.

Additionally, the buyer must:

  • certify to their good faith intention to continue employment as a teacher for at least one year after the date of closing;
  • agree to own and live in the purchased Property as their sole residence for the owner-occupancy term of 36 months and certify that occupancy annually during the owner-occupancy term; and
  • agree to execute a second Mortgage and Note on the house for the difference between the list price and the discounted selling price.

The buyer nor their spouse must not:

  • have owned any residential Real Property during the year before they submitted a bid on the Property to be purchased through the GNND Sales Program; and
  • have purchased another house under the GNND Sales Program.

To search for properties listed for sale under the GNND program in your neighborhood, visit the HUD HomeStore Good Neighbor Next Door property search page at: http://www.hudhomestore.com/Home/GNND.aspx
Click on a state in the U.S. Map to search for eligible properties.  Dark blue states have properties available for sale under the GNND program. The light blue states do not currently have GNND properties available for sale.

For additional information, please contact the Asset Manager with jurisdiction over the property.  To locate contact information for the Asset Manager, please visit the HUD HomeStore website at https://www.hudhomestore.com/ and click “Help” in the gray tool bar.

For policy information, see Handbook 4000.1 IV.B.2.d.iii. available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh


All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.


Topic Number: KA-02826