| |
|
|
|
Officer Next Door and Teacher Next Door programs discount HUD-owned,
single-family properties by 50% to qualified teachers and public safety
officers. These programs are designed to help in reducing crime, raising test
scores, and promoting better relations between inner-city residents, cops and
teachers. These homes are located in designated revitalization areas, subject to
a three-year owner occupancy requirement. Last year both programs were suspended
for four months after the scandal broke.
Since then, HUD drafted a proposed rule to expand the eligibility of Officer
Next Door and Teacher Next Door programs to tribal police officers,
firefighters, and emergency rescue workers. The proposed rule failed because HUD
officials determined that "The program's basic design appears to remain
vulnerable to abuse and may never achieve the stated purpose of reducing
neighborhood crime rates and urban abuse."
Officer Next Door
The U. S. Department of Housing and Urban Development (HUD) wants to make
American communities stronger and to build a safer nation. Public safety
improves when police officers live in a neighborhood. The Officer Next Door (OND)
program helps make this goal a reality by making homeownership faster and more
affordable for Law Enforcement Officers.*
Who Can Participate?
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 three years after you move
into it.
How do I participate?
OND property 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 Office Next Door button.
Bids are awarded once each week. Your bid must be the amount of the list price.
You may submit your bid directly or utilize the services of a real estate
broker. Winning bids are randomly selected by computer. 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 that you fulfill the
three-year occupancy requirement.
What Are the Benefits for the Officer?
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 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.
Discuss these financing options with your lender.
Because homes sold through the OND program are located in
Revitalization Areasthere 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.
I already purchased a home under the OND Program. Where can I get information
about my second mortgage?
Information
is available on the
OND/TND Loan Servicingpage.
Where can I get additional information?
Please contact your local
HUD Homeownership Center
or call (800)
569-4287. Regulations for the Officer Next Door Sales Program (but not contact
information) may be found starting at
24 C.F.R. 291.500 and
Housing Notice 04-23.
Teacher Next Door
The U. S. Department of Housing and Urban Development (HUD) wants to make
American communities stronger. The Teacher Next Door (TND) program is designed
to further this goal by encouraging teachers* to buy homes in low and
moderate-income neighborhoods.
Who can participate?
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.
How do I participate?
TND property is
listedand 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. Bids are awarded once each week. Your bid must be the amount of the list
price. You may submit your bid directly or utilize the services of a real estate
broker. 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.
What are the benefits for the teacher?
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 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 downpayment of only $100 and you may finance all
closing costs.
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.
Discuss these financing options with your lender.
Because homes sold through the TND 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.
I already purchased a home under the TND Program.
Where can I get information about my second mortgage?
Information is available on the
OND/TND Loan Servicing page.
Where can I get additional information?
Please contact your local
HUD Homeownership Centeror call (800)
569-4287. Rules for the Teacher Next Door Sales Program (but not contact
information) may be found at
Housing Notice 04-23 .
|
|
|
|
