HUD PUTS TEACHERS AND POLICE IN HOMES FOR 50%
OFF
U.S. Department of Housing, February 3, 2005
The U. S. Department of Housing and Urban Development (HUD) wants to make
American communities stronger. The Teacher Next Door (TND) and the Officer Next
Door (OND) programs are designed to further this goal by encouraging teachers
and officers to buy homes in low and moderate-income neighborhoods.
Who can participate?
Teacher Next Door (TND): 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.
Officer Next Door (OND): You must be a full-time, sworn law enforcement
officer who is "employed full-time by a Federal, state, county or municipal
government; or a public or private college or university." You must be "sworn to
uphold, and make arrests for violations of, Federal, state, county, or municipal
law." Your employer must certify that you are a full-time police officer with
the general power of arrest. 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 OND home. You must agree to live in the HUD home as your only residence for
three years after you move into it.
How do I participate?
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. A computer randomly selects the winning
bid. The winning bid is posted each week. 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 and
officer?
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/officer can buy it for $50,000. To make a HUD home even
more affordable, you can apply for an FHA-insured mortgage with a down payment
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.
How do I find a HUD home?
A REALTOR has access to the list of HUD homes and
can show you the properties. Properties available through the program are
marked with a special TND or OND button. Discuss these financing options
with your lender. For a TND/OND program expert,
CLICK HERE
See what homes are available for sale>>>CLICK
HERE
Because homes sold through the TND and OND programs, and 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.
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