Frequently Asked Questions (FAQ's)

(Updated February 23, 2017)

 

What is Teacher Next Door?

What programs are available?

How do I purchase a home for a 50% discount off the list price?

Are ALL homes through the Teacher Next Door 50% off?

Can I only buy certain homes?

Is there an application fee?

Are there any up-front fees?

Is there a fee for using the Teacher Next Door Program?

Do I have to be a Teacher?

Do I have to live in the home for a certain period of time?

How does the Free Home Buyers Service Work?

Is Teacher Next Door a Lender?

How do I know what program(s) I qualify for?

Can I buy with NO Money Down?

Can I put more money down if I choose?

Are there any income restrictions?

What If I’m a First Time Home Buyer?

Do I HAVE to be a First Time Home Buyer?

Can I use the program to refinance?

Do you offer a non-qualifying refinance? 

Do you offer a qualifying refinance?

What if I own another Home?

What will my interest rate be?

What is a risk factor?

What is a compensation factor?

Can I get a high interest loan?

Is Teacher Next Door a government agency?

Do I need to use a Teacher Next Door Realtor?

What if I already have a Realtor?

What is the next step? 

 


What is Teacher Next Door? 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. Our team will handle all of the purchase, finance and closing paperwork for you.  Top

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.  These grants may be funded, all or in part, by our agent and lending partners and may be used towards your closing cost.  Programs vary by city and state.     Top 

How do I purchase a home for a 50% discount off the list price?  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 CLICK HERE.      Top

Are ALL homes through the Teacher Next Door 50% off? NO. Only the HUD "Good Neighbor Next Door" homes. Top

Can I only buy certain homes?  NO.  You may purchase ANY home on the market as long as it is within the guidelines of your loan approval.  Top      

Is there an application fee? NO. There is NEVER any application fee.   Top   

Are there any up-front fees? NO. There are NEVER any up-front fees charged by Teacher Next Door or our preferred lenders.  Top     

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.   Top             

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 CLICK HERE.   If you are current or former military CLICK HERE.  Top                                   

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.)   Top       

How does the Free Home Buyers Service Work? 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.   Top         

Is Teacher Next Door a Lender?  NO.  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.   Top

How do I know what program(s) I qualify for?
 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. Top           

Can I buy with NO Money Down? YES. 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.   Top  


Can I put more money down if I choose? YES. You may put down any amount you like. If you put 20% or more down, you will typically be able to avoid PMI and you could qualify for a lower interest rate. Top

Are there any income restrictions? NO.  

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.   Top

What If I’m a First Time Home Buyer? No Problem.
Many of the programs available include first time home buyers.  Although, contrary to popular belief, being a first time home buyer may not entitle you to a lower interest rate, since underwriters may view first time home buyers as a slightly higher risk.  For more information on Teacher Next Door's First Time Home Buyer Programs, including teachers, law enforcement, firefighters, EMT's, Nurses and government employees - CLICK HERE   Top

Do I HAVE to be a First Time Home Buyer? NO.  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.  Top

Can I use the program to refinance? YES.
 Our national preferred lenders offer very competitive rates, terms and programs for teachers and other public service professionals.   Top   

Do you offer a non-qualifying refinance? YES. 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.        Top       

Do you offer a qualifying refinance? YES.  Teachers and other public service professionals will always receive excellent rates and terms when you refinance through our national preferred lenders.  Top


What if I own another Home?  No Problem.
   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.   Top

What will my interest rate be?  Since Teacher Next Door is not a lender, we do not set interest rates.  Our preferred lenders have agreed to provide you with an extremely competitive 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.  Top

What is a risk factor?
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.   Top

What is a compensation factor?
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.   Top

Can I get a high interest loan? NO.
 Teacher Next Door's preferred lenders must adhere to Federal conforming guidelines. They do not offer sub-prime loans.    Top

Is Teacher Next Door a government agency?  NO. The Teacher Next Door program is administered by Teacher Next Door, PLLC. (License No. FLCQ1044110)  It is a private organization, licensed Real Estate Brokerage and registered with the U.S. Department of Housing and Urban Development to sell HUD homes and represent buyers in the purchase of HUD owned homes. (HUD License No. NAID-TCHRNX832)    Top

Do I need to use a Teacher Next Door Agent? YES.
  Since our Agent Partners agree to contribute a portion of their commission towards your closing cost, to receive the full benefit of the Teacher Next Door Program, you need to be exclusively represented by a Teacher Next Door agent. Our Agent Partners are all highly trained, state licensed professionals and members of the National Association of Realtors. Upon loan approval, we will assign one of our knowledgeable agents in your local area who will work directly with you to find the right home and handle all of the paperwork.  If you decide to use a non-Teacher Next Door agent, you may not receive the agent rebate, as they are not required to contribute any of their commission.    Top

What if I already have an Agent? 
Your agent may contact our business office in order to become an Agent Partner of Teacher Next Door.      Top

  • If you are a licensed Real Estate Agent - CLICK HERE

 

What is the next step?  CLICK HERE to Get Started today!


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