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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.
Additional details and rules for the Teacher Next Door program may be found in Housing Notice 99-30.
Subject: Single Family Property Disposition Officer Next Door
Program/Teacher Next Door Initiative
The purpose of this Notice is to:
I. Provide updated and consolidated procedures for
administering the Officer Next Door (OND) Sales
Program. This Notice incorporates information
contained in Notices H 97-51 and H 97-73, as well as
revisions to the OND program which were published as an
interim rule in the Federal Register on July 2, 1999.
II. Announce implementation of the Teacher Next Door
Initiative (TND) which will expand eligibility for the
purchase of insured and uninsured revitalization area
properties by private and public school teachers.
Sales and administrative procedures for this one-year
initiative will be exactly the same as those used for
the Officer Next Door Program, with the exception of
program eligibility and SAMS reporting.
Attached is the Officer Next Door/Teacher Next Door Sales
Program Procedures Manual, which includes the interim rule for
Officer Next Door (See Exhibit A) and the Federal Register notice
for the Teacher Next Door Initiative (See Exhibit B). Although
public comments are being solicited on the interim rule, changes
will also apply to the new Teacher Next Door Initiative. Upon
issuance of the final rule, you will be notified of any further
changes to the program.
Major policy changes included in the Notice:
A. Expansion of Program Eligibility to include Private and
Public School Teachers
The Department's Teacher Next Door (TND) initiative is a
one-year program designed to strengthen America's communities by
encouraging public and private school teachers to live in low and
moderate income neighborhoods. Eligibility for the Teacher Next
Door 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. In addition, homes may be purchased directly from HUD
without the use of a broker. Teachers wishing to purchase a home
under the TND program must be in good standing with their
employer and meet the following criteria:
Be 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
Should a married couple be eligible under both the Officer
Next Door and Teacher Next Door programs, they are eligible to
purchase under one, but not both, programs.
B. Second Mortgage
To qualify to purchase a home through the Officer Next Door
or Teacher Next Door programs, a law enforcement officer or
teacher must agree to execute a second mortgage and note in the
name of the Department. Previously, only the inclusion of a
restrictive covenant in the deed was required. If a program
participant fails to meet the continuing obligations of their
respective program, the amount of the second mortgage will be due
and payable. The amount of the second mortgage will be reduced
on a pro rata basis over the owner-occupancy term. (See OND/TND
Policy and Procedures Manual, page 2.)
C. Initial and Annual Certification
Law enforcement officers and teachers must certify
initially, and once annually, for each year of the owner
occupancy term, that he or she continues to own and live in the
home as his or her sole residence and does not own other
residential real property. (See OND/TND Policy and Procedures
Manual, page 3.)
D. Multiple Homes
During the entire duration of the owner-occupancy term, a
law enforcement officer or teacher is prohibited from owning
residential real property other than the home purchased through
the OND/TND programs. (See OND/TND Policy and Procedures Manual,
page 2.)
E. Single-Unit Homes
Only single-unit homes are available for purchase through
the OND/TND Sales Programs. (See OND/TND Policy and Procedures
Manual, page 2.)
F. Property Availability
The time period in which law enforcement officers and
teachers are eligible to submit purchase offers for properties
under their respective programs at a 50 percent discount has been
extended. Offers may be submitted by law enforcement officers
and teachers following the initial five day offering period.
Consideration, however, will only be given to these offers
provided no other acceptable offers have been received and the
property is located in a HUD-designated revitalization area.
This extension beyond the initial five day offering period
previously authorized does NOT apply to governmental agencies or
nonprofit organizations. All direct sales procedures previously
in place will continue to apply to these groups. (See OND/TND
Policy and Procedures Manual, page 10.)
G. Reduction in MIP on 203(K) Mortgage Transactions
When a law enforcement officer or teacher uses a 203(k)
rehabilitation mortgage to purchase a property through the
OND/TND programs, the mortgage insurance premium will be reduced
by 20 percent. (The procedures to implement this will be issued
under separate cover.)
It is imperative that HOCs familiarize themselves with
established policy and procedures for administering the OND/TND
programs, since they are responsible for M&M contractor's
performance under the programs.
HOCs will provide Headquarters, Single Family Asset
Management Division, the names, telephone numbers and e-mail
addresses for the staff person(s) who are responsible for
providing OND/TND information to the M&M contractors.
Your support and effort in administering the Officer Next
Door and Teacher Next Door Sales programs is appreciated. Please
ensure that these updated procedures are immediately provided to
your Management and Marketing Contractors and implemented upon
receipt. If you have any questions, please contact the Single
Family Asset Management Division at (202) 708-1672.
William C. Apgar
Assistant Secretary for Housing
Federal Housing Commissioner
Click Here for PDF Attachment
Click here or type Alt-n for current program information: http://www.hud.gov/offices/hsg/sfh/reo/tnd/tnd.cfm
Click here or type Alt-h to contact your local HUD Homeownership Center: http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm
TYPES OF PURCHASERS
Types of Purchasers
Anyone can purchase a HUD property. There are two types of general purchasers: Owner Occupants and Investors. There are also several special programs for purchasers who qualify.
An Owner Occupant Purchaser is a purchaser who will be living in the property that they intend to purchase. The following regulations apply to owner occupant purchasers:
1. Must certify that they will live in the property as their primary residence for at least 12 months.
2. Must certify that they have not purchased a HUD owned property as an Owner Occupant Purchaser (regardless of financing type) within the last 24 months.
All new property listings have an Owner Occupancy priority period in which only owner occupant purchasers will be considered. This period is the first 10 days that the property is listed on the Internet. (Some cities have extended owner occupant periods – this information would be noted on the Property listings on the website). If a contract is cancelled and the full 10 days on the market have not been fulfilled the property will be offered exclusively to Owner Occupants until after this period has been completed. Price reductions are sometimes made on properties and for 5 days after a price reduction preference will be given to Owner Occupant buyers. Bids by investors will not be considered until the final day of the Owner Occupancy Period.
An investor purchaser is a purchaser who does not intend to live in the property being purchased as a primary residence. An investor may purchase a HUD property to re-sell, rent, or lease the property after settlement with HUD has been completed. Investor Purchasers also include a purchaser who is buying a HUD property as a second home and does not intend to occupy the property as their primary residence.
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 3-years after you move into it. Additional details and rules may be found in the program regulations.
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.
Additional details and rules for the Teacher Next Door program may be found in Housing Notice 99-30.
The FND program is open to any person who, for purposes of this program, is defined as an individual who is employed as a full-time firefighter by a fire department of the federal government, a state, a unit of general local government, or an Indian tribal government serving the area where the home is located.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 FND home. You must agree to live in the HUD home as your only residence for 3-years after you move into it.
Additional details and rules for the Firefighter Next Door program may be found in Housing Notice 05-17674.
The END Program is open to any person who, for purposes of this program, is defined as an individual who is employed as a full-time firefighter or emergency medical technician by a fire department or emergency medical services responder unit of the federal government, a state, a unit of general local government, or an Indian tribal government serving the area where the home is located.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 END home. You must agree to live in the HUD home as your only residence for 3-years after you move into it.
Additional details and rules for the Emergency Medical Technician Next Door program may be found in Housing Notice 99-30.
HUD-approved Non-Profits receive a discount on purchasing HUD properties. This discount is between 10% and 30% off the purchase price of the property and is based on the insurability and location of the property. The non-profit agency MUST be a HUD Registered Non-Profit Agency to qualify for the discount for more information on how to become a HUD approved Non-profit please click the link below.
How to become an Approved Non-Profit (housing)
HUD is offering local governments the opportunity to take advantage of a unique HUD resource - HUD Homes for Sale - at a bargain rate of $1, plus closing costs. The new Dollar Homes Initiative will allow local governments to purchase select HUD Homes for Sale for $1 and use them as part of a community revitalization or neighborhood affordable housing strategy. The HUD Homes available under this new program are those that have been on the market for six months or more. Local governments can partner with local non-profit homeownership organizations or tap into existing local programs to resell the homes to low- and moderate-income residents of the community. In these cases, the local governments will be required to purchase these properties and convey it to the non-profit organizations for rehabilitation and resale to first-time homebuyers. Hundreds of properties are available currently and new houses will be added on a weekly basis.
Good Neighbor Next Door |
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Law enforcement officers, pre-Kindergarten through 12th grade teachers and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return you must commit to live in the property for 36 months as your sole residence.
How the Program Works
Eligible Single Family homes located in revitalization areas are listed exclusively for sales through the Good Neighbor Next Door Sales program. Properties are available for purchase through the program for five days.
How to Participate in Good Neighbor Next Door
Check the listings for your state. Follow the instructions to submit your interest in purchasing a specific home. If more than one person submits on a single home a selection will be made by random lottery. You must meet the requirements for a law enforcement officer, teacher, firefighter or emergency medical technician and comply HUD's regulations for the program. 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 that you fulfill the three-year occupancy requirement.
The number of properties available is limited and the list of available properties changes weekly.
Who May Participate in the Good Neighbor Next Door Sales Program?
Law enforcement officers, pre-K through 12th grade teachers and firefighters/emergency medical technicians are eligible to purchase home through this program.
What Are the Benefits for the Participant?
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, an officer can buy it for $50,000. To make a HUD home even more affordable, you may 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 be eligible for an FHA rehabilitation mortgage. The FHA 203(k) mortgage program helps homebuyers buy a home and have enough money to rehabilitate or repair it. Repairs must cost more than $5,000. The cost of the repairs and the mortgage are combined into a single monthly payment. Consider FHA’s 203(b) program if needed repairs are under $5,000. FHA also has a new Streamlined 203(k) program which may be useful.
Discuss these financing options with your lender.
I already purchased a home under the GNND 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 call (800) CALL-FHA.
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HUD Revitalization Areas |
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Revitalization areas are HUD-designated neighborhoods in need of economic and community development and where there is already a strong commitment by the local governments. Revitalization Areas are the basis for HUD programs such as the Good Neighbor Next Door Program (which includes Officer Next Door and Teacher Next Door) and the Direct Sales Program for Nonprofit agencies and Municipalities.
There are hundreds of revitalization areas across the country. HUD is always working with localities to designate new areas. For information on Revitalization Area Evaluation Criteria, please see Housing Notice 2005-09.
For more information on revitalization areas, please contact your local HUD Homeownership Center. |
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