Good Neighbor Next Door (GNND) Program

We get lots of questions from buyers and agents about the Good Neighbor Next Door (GNND) program. People hear bits and pieces of the program and hope that it applies to them.  If you do qualify, it most certainly is a program that you should consider participating in.

The purpose of the Good Neighbor Next Door Sales Program is to improve the quality of life in distressed urban communities by encouraging law enforcement officers, teachers and fire-fighters/emergency medical technicians, whose daily responsibilities represent a nexus to the needs of the community, to purchase and live in homes in these communities.

What you need to know:

  • Available to Teachers, Police Officer, Fire Fighters and Emergency Medical Responders.
  • Buyer can get a 50% discount off the HUD appraised value.
  • Homes are available in HUD designated revitalization areas.
  • Buyer must live in the home for a full 36 months as the buyer’s sole residence.
  • Must not have owned another residential property for the last 12 months.

Eligible Participants (Details)


  • Full-Time
  • Pre-K – 12
  • Employed at State-Accredited Public and Private Schools
  • Serving Students From the Area Where the Home is Located

Police Officers

  • Full-Time
  • Employed by a Law Enforcement Agency of the Federal Government, a State, A Unit of General Local Government or an Indian Tribal Government
  • Must be Sworn to Uphold and Make Arrests for Violations of Federal, State, Tribal County, Township or Municipal Law

Firefighters/Emergency Responders

  • Full-Time
  • Employed by a Fire Department or Emergency Medical Services Responder Unit of the Federal Government, a State, A Unit of General Local Government or an Indian Tribal Government
  • Serving the Area Where the Home Is Located

General Rules

  • Earnest Money Is Required of  1% of the List Price (No less than $500 and No More than $2,000)
  • Must bid 100% of the List Price
  • Offers Selected by Lottery Number – Not Net to HUD
  • If Buyer Uses FHA Financing – May Get Their Loan for $100 Down Payment and may finance the cost of reasonable and customary closing costs
  • Buyer Must Qualify for the list price (not just the discounted amount)
  • Silent Second Mortgage will be Recorded
  • Silent Second Mortgage Will be Reduced by 1/36th on the Last Day of Each Month of Occupancy
  • HUD WILL NOT PAY COMMISSION OR CLOSING COSTS- Buyer must build those into financing or pay with cash.

There is also a helpful FAQ at to answer all of your questions on this program.

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WILMOTH Group is headquartered in Indianapolis, Indiana. We focus on providing creative local solutions for a variety of residential real estate needs including, properties for sale, property management services in Central Indiana.