FHA 203k lender for the Teacher Next Door program
How teachers can gain access to homes with 50% discount off the appraised value.
Teachers are in charge of our future leaders and voters. The FHA 203k Teacher Next Door program was designed to help teachers in targeted neighborhoods who purchase HUD foreclosed homes at a discount. There are a number of "low down payment" properties and other fixers that are HUD owned and they all have appraisals on them to identify the "as is" value for the properties. This is typically for full time teachers K-12 years.
Beware of bidding too high for a HUD foreclosed home. Example: If the home appraised for $250,000 and you think that you are going toget it for a large discount so you bid it up to $300,000 to be sure to get it... oops, not, for every dollar you bid over the appraised value you will have to add that difference to your down payment. Instead of coming in with 3.5% you have to pay $50,000 + 3.5% down payment. Therefore "DON'T DO IT". What I would suggest is that you do bid over the asking price but with pocket change. $10, $50, $100, something that won't break you and still puts you above most buyers.
Where do you find these properties? First you merely find a Realtor who deals with HUD properties and knows their way around that end of it to make your offer. It must come from an Agent or Broker. The original idea was that these homes had to be in targeted areas, Community Redevelopment Identified Areas. Be sure the property you are looking at qualifies for the Teacher Next Door program. Your local lender can tell you more about this program and likely provide you with a Realtor who can help you with your offer. If you have a problem finding one try Tim Floyd with Prospect Mortgage.
Agents selling these should build your commission in on the buyers side as these home don't get seller paid commissions from what I hear.
Oh, these are also for the FHA 203k properties so you can get the money to fix them up too. That part isn't discounted however.