U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door

What is U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door?

U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door is a grant for homebuyers in Statewide, California.

• 50% off list price of HUD-owned homes in HUD-designated revitalization areas. Buyer signs second mortgage for the discount amount, forgiven after 3 years of owner-occupancy.
• 50% discount off list price of HUD-owned single-family homes in revitalization areas. Three-year owner-occupancy commitment required (silent second mortgage forgiven over 3 years).
• Funding comes from HUD.

How much assistance does it provide?

U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door provides assistance worth 0.5% of the purchase price, as set by the program.

• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door is structured as a grant, so it is not repaid.

• Repayment is triggered by sale, transfer, or non-occupancy within 3-year period.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door is open to buyers who will live in the home as their primary residence.

What are the income limits?

U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door sets its income limit as follows: None (eligibility based on profession).

• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door can be used for HUD-owned single-family.

Is there eligibility for specific groups?

U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door names educators, law enforcement officers, firefighters, and healthcare workers among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door serves buyers purchasing in Statewide, California.

How do you apply?

Applications for U.S. Department of Housing and Urban Development (HUD) Good Neighbor Next Door go through the administering agency.

1. 1

   Contact the administering agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.