The U. S. Department of Housing and Urban
Development (HUD) wants to make American communities stronger. The
Teacher Next Door (TND) program is designed to further this goal by
encouraging teachers* to buy homes in low and moderate-income
neighborhoods.
Who can
participate?
The TND program is open to any person "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-12." Participants must certify that they
are employed by an educational agency that serves the school
district/jurisdiction in which the home they are purchasing is located.
Teachers wishing to purchase a home under the TND program must be in
good standing with their employer. Your employer must certify that you
are a full-time teacher or school administrator. You don't have to be a
first-time homebuyer to participate. However, you cannot own any other
home at the time you close on your TND home. You must agree to live in
the HUD home as your only residence for 3-years after you move into it.
How do I
participate?
TND property is
listed and sold exclusively over the Internet. Properties are
single-family homes located in
Revitalization Areas. 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. When an agency or nonprofit
buys the house, HUD expects the full discount to be passed on to you.
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.
What are
the benefits for the teacher?
The selected bidder may purchase the property at a 50 percent
discount from the list price. For example, if a HUD home is listed for
$100,000, a teacher can buy it for $50,000. To make a HUD home even more
affordable, you can apply for an FHA-insured mortgage with a downpayment
of only $100 and you may finance all closing costs.
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.
Discuss these financing options with your lender.
Because homes sold through the TND program are located in
Revitalization Areas there may be additional assistance from state or
local government sources. Local or state governments want to encourage
families and businesses to move into Revitalization Area neighborhoods.
Contact your state government housing office or local municipal
government and request information on assistance for homebuyers.
I already
purchased a home under the TND Program. Where can I get information
about my second mortgage?
Information is available on the
Good Neighbor Next Door Loan Servicing page.
Where can
I get additional information?
Please contact an OND/TND/FND program coordinator at your local
HUD Homeownership Center or call (800) 569-4287. Rules for the
Teacher Next Door Sales Program (but not contact information) may be
found at
Housing Notice 04-23.
