Teacher Home Loans & GNND Program
Teacher Home LoansThe Teacher Home Loans Initiative offers HUD-acquired, single family homes to public school teachers with the following significant benefits:
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Under the Teacher Home Loan program, HUD offers homes located in designated revitalization areas. These 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.
Homes offered for sale in the program were previously insured through the FHA and then foreclosed. HUD also reduces the downpayment requirement to just $100 if the home is purchased with an FHA insured mortgage.
Following are the requirements that Teachers must meet to use the program:
Once your offer has been accepted, you will have only 48hrs. to provide the required deposit and begin your loan approval process. Get started before making your offer to insure a smooth, stress free, transaction.
If you are interested in purchasing a HUD home for Teachers, take a moment to learn about real estate financing and FHA Qualifying.
Homes offered for sale in the program were previously insured through the FHA and then foreclosed. HUD also reduces the downpayment requirement to just $100 if the home is purchased with an FHA insured mortgage.
Following are the requirements that Teachers must meet to use the program:
- 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.
Once your offer has been accepted, you will have only 48hrs. to provide the required deposit and begin your loan approval process. Get started before making your offer to insure a smooth, stress free, transaction.
If you are interested in purchasing a HUD home for Teachers, take a moment to learn about real estate financing and FHA Qualifying.
HUD home for Teachers Facts & Questions
(1) Q. Can a teacher purchase a property at the 50% discount outside of the area where he/she is employed.
A. No. The HUD home for Teachers initiative requires participants to certify that they are employed by an educational agency that serves the school district/jurisdiction in which the home they are purchasing is located.
(2) Q. In order to participate in the TND program, does a teacher have to be currently performing classroom teaching duties?
A. No. The program requires only that the teacher be currently state certified to perform classroom teaching duties in grades K-12.
(3) Q. Can the teacher use the 203(k) rehab loan program if the property is eligible for this program?
A. Yes, the contract sales price is the as-is value and the discount is calculated on the as-is value. The rehab loan is not deducted from the teacher's discount, but may be financed as part of the loan.
(4) Q. Is this program restricted to first-time home buyers?
A. No, but the teacher cannot own any other residential real property and the teacher must reside in the HUD home as their sole residence during the three-year owner- occupancy term.
(5) Q. Does the $100 down payment apply only to the 203(k) program?
A. No. The $100 down payment applies to all FHA-insured mortgage programs.
(6) Q. Is there one discount (50 percent)?
A. Yes. This is the discount for properties in revitalization areas, and for properties that meet the exception criteria.
(7) Q. Will the teacher be offered the property before interested non-profit organizations or government agencies?
A. No. The list of available properties must be made available simultaneously.
(8) Q: How will the teacher be able to obtain access to the property?
A. Keys are available at our office in Queens at 10703 Rockaway Blvd Ozone Park, NY 11417 during business hours 7 days a week. An officer can request to pick up a key at our Brooklyn or Bronx locations by appointment. There is a $1.00 duplication charge for the key.
(9) Q. What happens if a teacher wants to purchase a property that is advertised to the public?
A. If the property is: (1) located in a HUD-designated revitalization area, and (2) is unsold with no active offer(s) on it, then it may still be purchased by a teacher at the 50% discount. The teacher must submit a competitive bid at 100% of the listing price. The 50% discount will be applied at closing.
(10) Q. Will HUD provide a home warranty?
A. No. All sales are as-is, without warranty of any kind.
(11) Q. Can multiple unit properties (e.g. 2, 3 or 4 unit properties) be made available under the TND Program?
A. No. Only single unit properties may be offered for the TND program.
(12) Q. Can a teacher offer less than the value established by the M&M contractor?
A. No. The contract sales price must be the value established by the M&M contractor.
(13) Q. Will the teacher be required to pay an earnest money deposit when submitting contract for a property?
A. No.
(14) Q. Will HUD pay a sales commission and/or all or part of the closing costs?
A. Yes, but the amount is deducted from the teacher’s discount. Example: The list price is $80,000 and the teacher requests closing costs of $2,000 and commission of $4,000. With the 50% discount = $40,000, at closing the teacher’s discount is reduced to $34,000.
(15) Q. Can the teacher sell the property for whatever the value is after the 3 years and keep any profit?
A. Yes.
(16) Q. What happens to a teacher who is separated from their agency within 3 years of the purchase?
A. Nothing. However he/she must be in good standing with the agency when the contract is signed.
