If you’ve ever wondered how some of our local teachers, firefighters, and police officers manage to put down roots right here in Denver, the Good Neighbor Next Door Program might be part of the answer. It’s one of those things you hear about at a neighborhood barbecue, where someone mentions a friend who landed a home with a surprising discount. There are some hoops to jump through, though, and not everyone qualifies—let’s look at who actually stands a chance.
Who Is Eligible for the Good Neighbor Next Door Program in Denver
If you’ve ever wondered who actually qualifies for the Good Neighbor Next Door program here in Denver, you’re not alone—most folks are surprised by just how specific the criteria are.
The program’s open only to full-time law enforcement officers, teachers, firefighters, or EMTs who serve Denver directly. Volunteers and part-timers don’t make the cut, and you have to be employed by a Denver-area government agency or school.
Teachers need to serve local students; officers and emergency responders must work right where the property sits. You can’t have owned a home in the last year, and previous program participants are out.
If you do qualify, you’ll need to live in the home for three years, with strict checks to prove you’re really putting down roots here.
How the Program Works for Denver Homebuyers
Even though the Good Neighbor Next Door program follows the same rules everywhere, the way it plays out here in Denver has its own local flavor—especially once you start looking at the neighborhoods and properties on offer.
Here’s how it works for us: We’ve got to act quickly, since these HUD homes are only available for a week before they go public.
Working with a HUD-registered broker is essential—they’re our guide through the bidding process, where a lottery decides the winner if there’s more than one bid.
We’ll need to get pre-approved for a mortgage, usually an FHA loan with just a $100 down payment.
The homes are sold as-is, so we’re committing to three years as our primary residence.
Closing typically takes about two months.
Finding HUD-Owned Properties in Denver
Finding HUD-owned properties in Denver isn’t quite like scrolling through your average real estate site.
We’ll want to dig into local MLS systems for Denver and Boulder, where HUD homes pop up under the “Seller Type: Government” tag. Some folks use the “David Sells Denver” site since it tracks government-owned listings, and it’s not rare to see these homes auctioned off after foreclosure.
It helps to filter search results carefully, since “government” could mean VA or other agencies—not just HUD. Listings will range from city condos to big rural lots, each with its own quirks and character.
Before we get too attached, let’s double-check with agents and cross-reference with HUD’s own database to confirm we’re actually looking at a true HUD property.
Steps to Apply and Purchase a Home Through the Program
Once you’ve got your eye on a place, the steps to apply and actually snag one of these HUD homes come at you pretty fast.
We’ll start by getting pre-approved for a mortgage—our lender will want to see a credit score of at least 580, and we’ll need that FHA pre-approval in hand because the window to bid on a property is just seven days.
Next, we’ll team up with a HUD-registered real estate pro who knows the ins and outs of this program. Bids have to go in at full price, along with a small earnest money deposit.
If our bid is picked, we’ll move quickly—finalizing financing, handling all the paperwork, and closing in about two months. It’s quick, but totally doable.
Key Considerations and Restrictions for Denver Participants
While the Good Neighbor Next Door program sounds like a golden ticket, there are a few hoops we’ve got to jump through if we want to call a Denver property home. We’re talking about a pretty strict set of requirements—like living in the house for at least 36 months and certifying that we’re still working as teachers, first responders, or law enforcement. Don’t forget, Denver’s inventory is slim, and we’ve only got a week to bid. Here’s a quick snapshot of what we’re up against:
| Requirement | Details | What It Means For Us |
|---|---|---|
| Occupancy | 36+ months as primary home | No moving or renting out |
| Eligibility | Must work in Denver & qualify by profession | Not for everyone |
| Property Availability | Only HUD-owned, specific areas, 7-day window | Act fast—homes go quickly |
| Compliance | Annual certification, possible home checks | Stay on top or face penalties |
FAQ
Can I Rent Out a Room in My Good Neighbor Next Door Home in Denver?
We can’t rent out any rooms in our Good Neighbor Next Door home here in Denver.
The rules are pretty clear: we’ve got to live in the house ourselves for all three years, and we can’t use it as a rental in any way.
Every year, we’ve to certify that we’re still living there.
It’s strict, but it keeps the spirit of the program—neighbors who really put down roots in the community.
What Happens if I Need to Move Before the 3-Year Residency Is Over?
If we’ve to move before our three years are up, we’re on the hook for paying back the discount we got on the house—HUD calls it a “silent second mortgage.”
There aren’t exceptions for sudden moves, even ones for family or work. HUD checks up on us, too, so it’s not something we can quietly ignore.
It’s a big commitment, but that’s how they keep the program fair for everyone.
Are There Tax Implications for Receiving the 50% Discount in Denver?
We don’t pay federal income tax on the 50% GNND discount upfront, since it’s set up as a silent second mortgage, not cash in hand.
If we stick out the three years, that “forgiven” debt might look taxable, but for most of us living here as our main home, that’s usually excluded.
For property taxes, though, Denver assesses value at market rates, not what we paid—so expect regular local taxes, discount or not.
Can Married Couples Both Apply if They Work in Different Qualifying Professions?
We can’t both apply for the same Good Neighbor Next Door home, even if we’re married and each have a qualifying job.
Only one of us can be the official applicant per property. The program doesn’t double up benefits for couples, and our spouse’s ownership history still matters for eligibility.
It’s a bit strict, but that’s how they keep things fair. If you have more questions about local quirks, just ask—Denver’s housing scene always has surprises.
How Often Are New HUD Homes Listed in Denver’s Revitalization Areas?
We see new HUD homes pop up here in Denver’s revitalization areas about once a week, but honestly, there are usually just a couple available at any given time—sometimes none at all.
The listings refresh each week, so it pays to check every Monday.
We’ve learned that spring and early summer bring a few more options, but you’ve got to move quick—these homes don’t sit long once they’re posted.
