FHA now offers discounted mortgage rates with unique home loans that are only available to teachers The Teacher Next Door is a special mortgage to help supplement teacher housing. These home loans offer teachers a HUD-acquired, single-family properties to public school teachers many worthy benefits: Under the Teacher Next Door program, HUD offers homes located in designated revitalization areas. Revitalization areas are typically in low- and moderate-income neighborhoods, have many vacant properties and often have high crime rates. HUD considers these properties as ideal for improvement and economic development.
Low Rate Home Loans for Teachers
Teaching prospects can buy designated homes for sale in this initiative that were previously insured by FHA prior to the home loan default and foreclosure proceedings. In addition HUD has lowered the down-payment requirement to just $100 if the house is purchased with another FHA insured loan. In order to purchase a Teacher Next Door Home you must be pre-qualified and approved with a commitment letter from a FHA approved lender.
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Teacher Next Door Home Loans Sponsored by FHA by Jean Pryor
The U.S. Department of Housing and Urban Development (HUD) wants to make American communities stronger. The Teacher Next Door program is designed to further this goal by encouraging teachers to buy homes located in designated revitalization areas. Revitalization areas are typically in low- and moderate-income neighborhoods, have many vacant properties and often have high crime rates, but are considered good candidates for economic development and improvement.
The Teacher Next Door (TND) program is a unique home loan incentive with FHA. This loan offers HUD-acquired, 1-family homes to public school teachers with the following significant benefits:
50% discount off appraised value.
$100 down payments.
The Teacher Next Door program discounts HUD-owned, single-family properties by 50% to qualified teachers. Teaching prospects can buy designated homes for sale in this initiative that were previously insured by FHA prior to the home loan default and foreclosure proceedings. In addition HUD has lowered the down-payment requirement to just $100 if the house is purchased with another FHA insured loan.
Teachers Requirements for Loan Qualification
The teacher doesn't have to be a first-time homebuyer to participate. However, the teacher cannot own any other home at the time the loan closes on the TND home.
Teacher must live in the property as their sole residence for at least three years after purchase.
A "teacher" is defined as an individual employed full time by a public school, private school, or Federal, State, county or municipal educational agency as a State-certified classroom teacher or administrator in grades K through 12.
Teachers wishing to purchase a home under the TND program must be in good standing with their employer. The employer must certify that the teacher is a full-time teacher or school administrator.
How to Participate
TND property is listed (http://www.hud.gov/offices/hsg/sfh/reo/homes.cfm) and sold exclusively over the internet. Properties are single-family homes located in Revitalization Areas (http://www.hud.gov/offices/hsg/sfh/revite/abt_revt.cfm). Properties available through the program are marked with a special Teacher Next Door button. Bids are awarded once each week. Your bid must be the amount of the list price. You may submit your bid directly or utilize the services of a real estate broker. A computer randomly selects the winning bid. The winning bid is posted each week on the web site where you made your bid.
You may also buy a home from a government agency or a nonprofit organization that bought the home from HUD. HUD expects the full discount to be passed on to you when an agency or nonprofit buys the house.
In all cases, HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided you fulfill the three-year occupancy requirement.
If the home you want to purchase needs repairs, you may use FHA's 203(k) mortgage program. This program allows you to finance both the purchase of the home and the cost of needed repairs. You have the benefit of one loan for both costs and one monthly payment. Call us if you have questions about your options under this program.
