Mortgage Loans For Teachers

Teacher next door This program is offered by the Housing of Urban Development. It is the Good Neighbor Next Door program. Many people are moving away from cities. The purpose is to encourage urban redevelopment. This is offered to all professionals. It includes police, emergency medical technicians and firefighters too. Educators can qualify for the program. They can get a fifty percent reduction in the price of a home. The home must be a qualifying HUD home.

Qualifications You must be an educator for preschool through the twelfth grade in high school. You must be employed full time. You must work at a state accredited school. The school may be private or public. The home must be in the school district that you work. For example, you cannot live in one city and buy a HUD house in another.

Home purchase requirements There are specific requirements for the home that you buy. You must pick from a list of HUD homes. If more than one party selects the same home, there is a drawing to determine the participant. This makes it a random choice event. You must agree to live in the home. If you qualify for an FHA loan, you get a special deal. You only need one hundred dollars for a down payment. You can also finance your closing costs. This will allow you to buy your home for a minimum cash outlay.

Residency requirements You must agree to live in the property for a period of three years. After the thirty six month period, you are free to do whatever you like. You can sell the house if you wish. However, you must make certain that you fulfill the three year obligation. HUD enforces this rule strictly.

Financing You can use other loan sources besides FHA. You can use a conventional loan or a VA loan. Of course, cash is also acceptable. You must sign a special second mortgage. As long as you live in the house for the three year period, you do nothing. If you violate the three year rule, you are responsible for the other fifty percent. You will need to pay the entire value of the home. This amount will be prorated for the length of time that you live in the home.

After the three years After you fulfill your residency requirements you can sell the house. You are also free to keep the entire amount of the sales. For example, you might buy a $150,000 home for $75,000. After thirty six months you sell the house for $150,000. You pay off the balance and keep the remaining money. The house can be rented out, also. Your obligation to HUD ends after the three years. The purpose of the program is to encourage you to live in the inner city area.

Summary There are mortgage loans for teachers. The program is sponsored by HUD. It is there to encourage professionals to live in the area where they work. You can get a fifty percent discount and special financing. You must live in the home for three years. After that, you can do as you wish with the house.