Teachers are permitted to purchase homes that are HUD repos at up to 50% off the appraised value. Many HUD homes will allow for a $100. down payment in leau of the 3% that is standard.
This HUD Good Neighbor Program will expand teachers ability to purchase a home. My understanding is that this Teacher Next Door Initiative will assist in buying a home at a 50% of the appraised value loan. You start with two loans 50 & 50 and HUD will absorb one of the 50% loans after 36 months. There are restrictions allowing you only 5 days on a new HUD listings to have an accepted contract The program states that you must live in the property for a minimum of 3 years. I am still in the process of studying the loan requirements of HUD property selections. I will continue this blog with additional information on how to use this loan program and take advantage of the large inventory of HUD Homes.
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Pursuant to the authority of the Secretary under Section 204 of the National Housing Act, Section 7 (q) of the Department of Housing and Urban Development Act, and the waiver authority contained in 24 CFR 5.110, I hereby make the following Findings and Determinations.
FINDINGS
1. 24 CFR 291.210 (a) permits direct sales at deep discounts off the list price of properties sold without mortgage insurance to governmental entities and private nonprofit organizations for use in HUD and local housing or homeless programs.
A waiver of the requirements of 24 CFR 291.210 (a) is needed in order to provide authority for governmental entities, school districts and private nonprofit organizations to purchase properties offered with mortgage insurance on a direct sales basis and to provide discounts of 50 percent for use in the Teacher Next Door Initiative.
2. Based on HUD's experience with REO sales, it would not be detrimental to the insurance fund to permit governmental entities, school districts, and private nonprofit organizations to purchase properties offered with mortgage insurance on a direct sales basis or to provide discounts of 50 percent on properties sold for use in the Teacher Next Door Initiative.
3. 24 CFR 291.210 (c) permits HUD to dispose of HUD-owned single family properties through direct sales to other individuals or entities that do not meet any of the categories specified in this section, if a finding is made by the Assistant Secretary for Housing- Federal Housing Commissioner, or his or her designee, in writing, that such sales would further the goals of the National Housing Act (12 U.S.C. 1701 et seq.) and would be in the best interest of the Secretary. These sales will be upon such terms and conditions as the Secretary may prescribe. This finding applies to the direct sale of HUD-owned properties to teachers in designated revitalization areas.
4. The Teacher Next Door Initiative gives teachers the opportunity to live and work in communities where they are most needed. The integration of teachers, who are role models and mentors, into a community enhances the community's quality of life.
5. To date, the program has enabled the Department to dispose of 3700 properties from its inventory, while providing homeownership to an equivalent number of qualified buyers
and supporting residency of employed, professional teachers in revitalization areas.
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DETERMINATIONS
1. Accordingly, pursuant to the authority contained in 24 CFR 5.110, good cause has been shown that it is in the public interest and consistent with the Department's objectives to waive 291.210 (a).
2. There is no statutory authority that would preclude this waiver.
3. Title 24 of the Code of Federal Regulations, Section 291.210 (a) therefore should be, and hereby is, waived where a sales contract is accepted under the Teacher Next Door Initiative on or before September 30, 2005. Accordingly, Homeownership Centers are authorized to permit the offering of properties with mortgage insurance on a direct sales basis to governmental entities, school districts, and pre-approved nonprofit organizations for resale to teachers who shall be required to occupy the properties for at least three years as their sole residence. Homeownership Centers are also authorized to permit discounts of 50 percent on direct sales to governmental entities and pre-approved nonprofit organizations for use in the Teacher Next Door Initiative.
4. The direct sale of HUD-owned properties to teachers will further the goals of the National Housing Act (12 U.S.C. 1701 et seq.) and will be in the best interest of the Secretary by increasing homeownership opportunities as well as strengthening neighborhoods and communities. Therefore, Homeownership Centers are authorized to place teachers on equal footing with law enforcement officers eligible under HUD's Officer Next Door Program, governmental entities, school districts, and pre-approved nonprofit organizations by permitting the offering of insurable and uninsurable properties in designated revitalization areas to teachers on a direct sales basis. In addition, Homeownership Centers are authorized to permit discounts of 50 percent on such sales. Teachers shall be required to occupy the properties as their sole residence for at least three years.
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Betty Poynter
RE/MAX Real Estate Center
Indiana & Ohio Realtor
1151-1 Stone Drive
Harrison, OH 45030
Cell OH 513-623-3460
Cell IN 812-290-6182
Fax# 317-642-0977
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