Educators take notice of the teacher next door programs for purchasing a HUD home.

A great home at a great price may be available for you.

The Teacher Next Door program offers a significant discount when purchasing a HUD home. In order to participate in the program, teacher must be employed full-time in their profession, cannot own any other real estate, and agree to live in the home that they purchase for three years following the purchase. The program is available 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." Teachers must also certify that they are employed by an educational agency that serves the school district/jurisdiction in which the home they are purchasing is located.

The properties eligible for the program are listed and sold exclusively online. The eligible properties are usually single family homes located in specific revitalization areas. Properties available through the program are specifically identified for the bidders. A full price bid of the list price is awarded once each week. Winning bids are randomly selected by computer and posted on the website where you made your bid.

When participating in the program, HUD will require that you sign a second mortgage and note equivalent to the amount that the home was discounted. This second mortgage carries no interest or payments provided that the three-year occupancy requirement is fulfilled.

If the home purchase is in need of repairs, you may use FHA's 203K mortgage program, allowing you to finance both the purchase and needed repairs. Homes sold through the program are generally located in revitalization areas there may be assistance from other governmental sources. Beyond the program, you should explore any additional assistance that may be available.

Need more information about HUD homes available in your area, click here.
 

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