HUD Good Neighbor Next Door Sales Program

At a glance

Amount

50% off the HUD list price of an eligible HUD-owned home

Type of help

Other help

Where

Nationwide

Run by

U.S. Department of Housing and Urban Development (HUD), Office of Housing

First-time buyer

Repeat buyers welcome

Income limit

None

Homebuyer education

Not required

How the other help works

A special purchase path, discount, or loan type that lowers what you need at closing.

• Interest: 0% on the discount note
• Monthly payment: None
• Forgiveness: HUD records a second mortgage and note for the discount amount. No interest and no payments are due if you live in the home as your primary residence for 36 months. HUD releases the note after year three.
• When you would repay: Move out, rent the home, or fail the annual occupancy certification before 36 months are up and HUD can call the discount note due.

Who qualifies

• Repeat buyers welcome. HUD does not require first-time status, but it does apply rules about owning another home when you bid. Confirm those with the listing broker before you submit an offer.
• Income. No income limit. Eligibility turns on your job, not your paycheck (checked 2026-09-23).
• Only for: teachers and educators, first responders.
• Property types: Single-family HUD-owned homes in HUD revitalization areas. Must be your primary residence.
• Law enforcement: employed full time by a federal, state, tribal, or local law enforcement agency and sworn to uphold the law, serving the area where the home is located.
• Teachers: employed full time by a state-accredited public or private school teaching pre-K through 12th grade, serving the area where the home is located.
• Firefighters and EMTs: employed full time by a federal, state, local, or tribal fire department or emergency medical services unit serving the area where the home is located.
• The home must be a HUD-owned property listed under the Good Neighbor Next Door program in a HUD-designated revitalization area.

How to apply

1. 1Confirm you hold one of the qualifying full-time jobs and that the home you want sits in the area your agency or school serves.
2. 2Get pre-approved. Most buyers use an FHA loan, but any financing that works for the property is allowed. Budget for closing costs and any repairs, since HUD homes sell as-is.
3. 3Watch HUD Home Store for Good Neighbor Next Door listings in Maryland, DC, or Virginia. Each listing is open for seven days only.
4. 4Submit your bid through a real estate agent whose broker is registered with HUD to sell HUD homes. Ask your agent to confirm this before you find a house.
5. 5If more than one eligible buyer bids on the same home, HUD picks the winner by random lottery. If you win, you sign the discount note at closing and certify occupancy every year for three years.

Watch out for

• Inventory in the DC and Baltimore area is thin and comes and goes. This is a watch-and-pounce program, not one you can plan a move around.
• You must live in the home as your primary residence for 36 full months. HUD requires an annual certification, and lying on it is a federal felony.
• The 50% discount does not cover closing costs, repairs, or your loan's mortgage insurance. HUD homes are sold as-is, so plan for an inspection and a repair budget.
• Active-duty military buyers who get orders have a narrow exception that lets them rent the home without penalty. Everyone else must occupy it.
• The discount is a lien. If you sell or move out before year three, you owe the discounted amount back to HUD.

Straight answers

Sources

• HUD, Good Neighbor Next Door Sales Program (read Sep 23, 2026)
• HUD Home Store, HUD-owned home listings (read Sep 23, 2026)

Program details are summarized from public sources and change without notice. Funding badges reflect the last time we checked, not a guarantee of availability. This is buyer education from a real estate agent, not a loan pre-approval or a commitment to lend. Eligibility is decided by each program administrator and your lender. Equal Housing Opportunity.