GOOD NEIGHBOR NEXT DOOR PROGRAM
Welcome
Teacher Next Door Participants,
This information has been
designed to assist you through the program from finding a
property, placing a bid, submitting your sales package, and
closing the transaction with the correct Paperwork. Below
is some general information regarding the program:
The U. S. Department of Housing
and Urban Development (HUD) wants to make American communities
stronger. The Good Neighboor Next Door (GNND) program is designed
to further this goal by encouraging teachers* to buy homes
in low and moderate-income neighborhoods.
A person qualifies as a teacher for the purposes of the GNND Sales Program if the person is:
(a) Employed as a full-time teacher by a state-accredited public school or private school that provides direct services to students in grades pre-kindergarten through 12; and
(b) The public or private school where the person is employed as a teacher serves students from the area where the home is located in the normal course of business.
The person must agree to live in the home as his/her sole residence for the duration of the owner-occupancy period. Neither the person (nor his/her spouse) may have owned any residential real property during the year prior to the date of submitting a bid on the home being acquired. Neither the person nor spouse may have ever purchased another home under the GNND sales program or under the OND/TND Sales programs.
Additional details and rules may be found in the program regulations.
Teacher Next Door properties 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
("OND/TND Submit a Bid"). Bids are awarded once
each week. Your bid must be the amount of the list price.
You must utilize the services of a real estate agent to submit a bid and an earnest money deposit of 1% of the list price (no less then $500 and no more then $2000) is required. 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.
These properties are found in the Special Programs corner
of our website. These are new properties that have not yet
been offered to the general public and are exclusively available
for GNND participants and Non-Profits for 5 days before
going to the General List. These listings, also know as Reserve
listings, can be accessed by choosing your state and then
selecting Reserve Listings.
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 qualified officer or 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 down payment
of only $100 and you may finance all closing costs. Your real estate agents commision can now be financed.
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.
Because homes sold through the GNND 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.
For FAQ's regarding the GNND program click here.
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