Buy a HUD home: down payment

Federal home Buying programs


The Teacher Next Door program was designed to increase home ownership among teachers, support community development and increase access to affordable housing free from discrimination. The program is intended to eliminate confusion by streamlining the home loan and home buying process and by matching the individual with the best program available, based upon the specific needs of the teacher and their family.

Your Teacher Next Door agent will help you locate the right home and negotiate the lowest price possible. We handle all of the purchase, finance and closing paperwork for you.

What programs are available? For home purchases, there are many different Federal, state and local programs available to teachers, including the HUD Good Neighbor Next Door Program, the State Housing Initiative Program (SHIP), Keystone Challenge Fund, USDA Rural Program and other specific programs available through HUD, FHA, VA, USDA, Fannie Mae and other local agencies. In addition, Teacher Next Door offers private money grants in 40 states. These grants are funded from our Realtor Partner’s closing proceeds and may be used towards your closing cost. Programs vary by city and state.

This is an awesome program currently available to teachers through HUD's Good Neighbor Next Door Program. These properties are located in certain revitalization areas and available via a lottery style bid. There are some restrictions including a three year occupancy requirement. Your Teacher Next Door Representative can provide additional details and check availability in your area. For more info on the Good Neighbor Next Door Program

NO. Only the HUD "Good Neighbor Next Door" homes.

There are NEVER any up-front fees charged by Teacher Next Door or our preferred lenders.

Is there a fee for using the Teacher Next Door Program? NO
. There is NO FEE at all for using the program. In fact, teachers can expect to save money based upon lower fees charged for the various programs we offer. Plus, teachers may receive additional discounts on title insurance, home inspections and other services.

Do I have to be a Teacher? NO.
Teacher Next Door recently expanded the program to include many public service professionals. These include police officers, firefighters, medical professionals, government workers and others. We are committed to serving those who serve us in the communities where we all live and work. For a complete list of non-military programs

Do I have to live in the home for a certain period of time? NO
. (Except for one or two down payment assistance programs that require a three or five year commitment.)

Once approved, one of our licensed Realtors will work with you to help find a home in your area. We will let you tour the inside of the homes, negotiate the purchase contract and handle all of the paperwork for you.

Teacher Next Door utilizes two national preferred lenders, Peoples Mortgage (License No. NMLS 6274) and ENG Lending (License No. NMLS No. 418481). Teacher Next Door does not collect, store or have access to your personal financial information and we do not receive compensation from mortgage loan transactions.

When you complete your secure online application, you will have a personal Loan Officer from our preferred lender in your state who is knowledgeable in all of the programs available to you.
Your Loan Officer will help place you in the appropriate program and guide you through the process based upon your individual circumstance including credit, down payment (if any) and the location of property.

But there are some restrictions for some of the zero down programs. The most common of which is the area in which the home is located. If a zero down loan is not available, the typical minimum out of pocket expense is approximately three to three and a half percent (3 – 3.5%) of the purchase price. This typically includes down payment and other fees such as insurance, appraisal etc. This may come in the form of a gift or 401(k) disbursement. Your Loan Officer can explain additional options.

However, you must make enough to cover the payment. Also, some local down payment assistance programs may have a maximum income you may earn in order to qualify.
Many of the programs available include first time home buyers. Although, contrary to popular belief, being a first time home buyer will not entitle you to a lower interest rate, since underwriters may view first time home buyers as a slightly higher risk.
If you own a home you may still take advantage of all Teacher Next Door programs and benefits except for the HUD Good Neighbor Program, which prohibits you from owning any property for 3 years prior to placing a bid.
Our national preferred lenders may offer a "Streamline Refinance" as well as the Federal HARP refinance program, which could assist you if you are under water on your current mortgage. Teachers and other public service professionals will always receive excellent rates and terms when you refinance through our national preferred lenders.

If you own a home you may still take advantage of all Teacher Next Door programs and benefits except for the HUD Good Neighbor Program, which prohibits you from owning any property for 3 years prior to placing a bid.

Since Teacher Next Door is not a lender, we do not set interest rates. However, the national average rates are posted daily on our home page. Our preferred lenders have agreed to provide you with the lowest possible rate for your loan based upon your individual loan application and loan program. Your interest rate will be adjusted by the Federal underwriting guidelines based upon risk factors, as well as compensating factors.
As with insurance, underwriter guidelines contain upward adjustments to the interest rate based upon risk factors. These may include: low credit score, high loan-to-value, first time home buyer, no rental history, short time on the job, etc.
Whenever possible, underwriters use compensation factors to counter other risk factors to help keep the rate low. These may include, high credit score, long time on the job, recent college grad, good rental history, large down payment, etc.
Teacher Next Door's preferred lenders must adhere to Federal conforming guidelines. We do not offer sub-prime loans.


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FAQ


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What US banks offer foreign national mortgages? - Quora

Find a local, licensed loan originator who works for a non-depository mortgage lender OR a mortgage broker. Either of these entities (and not a bank) will be able to help you locate a lender willing to lend. You do not have to be a U.S. citizen to obtain a mortgage in the U.S.  Here's another trick.  The industry uses this website as a way to shop and see what lenders have to offer their customers:




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