There is a FHA Loan Program specifically for Teachers/Police Officers who would like to acquire a home. This FHA Good Neighbor Next Door (TND) Loan Program offers single unit HUD owned properties to school teachers with the follow benefits:
- 50 percent discount off of the appraised value
- Only $100 down required for the down payment
The FHA Next Door Loan Program was developed to offer HUD homes located in specific restoration sections to teachers looking for a great value in a home. These restoration areas typically have a high probability of growth and progress in the future, but are currently in mid to low income districts. You also notice that you will see a little higher number of crimes and many vacancies.
These homes are HUD Homes for Sale and therefore they were purchased using a FHA Home Loan at some point, but was foreclosed on. If a Teacher or a Police Officer purchases a HUD home using this FHA Teacher Next Door Loan Program, the down payment required for this purchase is only $100.
Teacher Next Door Mortgage Eligibility Requirements
In order for you to qualify for this FHA loan program, you must meet the following:
- Teacher that makes the purchase must use this property as the place of residence for a minimum of three years from the purchase date.
- The Teacher must be a full time public or private school employee in the county, state, or Federal level that teaches between the grades of Kindergarten to grade 12.
Officer Next Door Mortgage Eligibility Requirements
In order for you to qualify for this FHA loan program, you must meet the following:
- Police Officer that makes the purchase must use this property as the place of residence for a minimum of three years from the purchase date.
- The Police Officer must be a sworn in, full time law-enforcement employee in the county, state, or Federal level. Your power of arrest cannot be limited to a specific area or building, and should encompass any and all areas.
The process of a HUD home purchase using the FHA Teacher Next Door loan program moves very quickly. As soon as you are approved for the purchase of a HUD home, you only have a matter of days to make your down payment. For this reason, you should already have a letter of commitment showing your FHA loan approval ready before making any bids.