Are there special home loans for teachers, police, firefighters and EMTs in New Hampshire?

How does Good Neighbor Next Door work?

Under HUD's rules (24 CFR part 291, subpart F), the program lets an eligible buyer purchase a designated HUD-owned single-unit home in a revitalization area at a discount from the list price. If several eligible buyers bid on the same home, HUD picks the winner by lottery. The buyer:

• must work full time in the job when bidding and at closing, and intend to stay at least a year;
• must serve the community where the home is located;
• can't have owned a home, or had a spouse who owned one, in the year before bidding;
• must live in the home as their only residence for 36 months; and
• signs a second mortgage to HUD for the discount, which shrinks each month you live there and is gone after 36 months. Sell or move out early and you owe what's left.

How is the purchase financed?

You can use an FHA or conventional loan. With FHA, HUD's rules let you finance reasonable closing costs and, with a 203(k) renovation loan, repair costs, on top of the discounted price. HUD doesn't pay the buyer's closing costs under this program. See renovation loans and buying a bank-owned or HUD home.

What if no Good Neighbor home is available?

That's common, since only certain HUD homes in designated areas qualify. Compare these instead:

• NH Housing: its homebuyer programs aren't tied to a job; they use income limits and other rules. See NH Housing down payment help.
• Veterans and service members: see the VA loan guide.
• First-time buyers: see the first-time buyer guide and compare loan programs.

Teachers with summer breaks or first responders with overtime should also read how overtime and bonus income count.