HUD Explains ‘Good Neighbor Next Door’ Program. The Department of Housing and Urban Development has issued Mortgagee Letter 2013-20 to clarify certain things about the FHA’s Good Neighbor Next Door Sales program. The program allows eligible borrowers to purchase, at 50 percent off the list price, a HUD-acquired single-unit home located in an area that the department has targeted for revitalization. According to HUD, the mortgage insurance premium should be based on the first mortgage only. The agency also clarified the process for allowing interruptions to ...