(1) Q. Can a teacher purchase a property at the 50% discount outside of the
area where he/she is employed.
A. No. The Teacher must purchase a home in the school district/jurisdiction
in which they are employed.
(2) Q. In order to participate in the TND program, does a teacher have to be
currently performing classroom teaching duties?
A. No. It is only required that the teacher/administrator be currently state
certified in grades K-12 to perform classroom teaching or administrative duties,
and be employed full-time in some capacity (i.e., counselor, advisor, teacher,
administrator, etc.).
(3) Q. Can teachers include repair costs in their loan?
A. Yes, HUD has a 203(k) rehab loan that allows the borrower to make one
payment for both purchase and rehabilitation.
(4) Q. Is this program restricted to first-time home buyers?
A. No, but the teacher cannot own any other residential real property and the
teacher must reside in the HUD home as their sole residence during the
three-year owner- occupancy term.
(5) Q. Does the $100 down payment apply only to the 203(k) program?
A. No. The $100 down payment applies to all FHA-insured mortgage programs.
(6) Q. Is there one discount (50 percent)?
A. Yes. This is the discount for properties in revitalization areas, and for
properties that meet the exception criteria.
(7) Q. Will the teacher be offered the property before interested non-profit
organizations or government agencies?
A. No. The list of available properties must be made available
simultaneously.
(8) Q: How will the teacher be able to obtain access to the property?
A. HUD's Management and Marketing (M&M) contractors, at their discretion,
may provide the teacher with a key which is returned at time of contract
acceptance or they may make other suitable arrangements to gain access to
properties.
(9) Q. What happens if a teacher wants to purchase a property that is
advertised to the public?
A. If the property is: (1) located in a HUD-designated revitalization area,
and (2) is unsold with no active offer(s) on it, then it may still be purchased
by a teacher at the 50% discount. The teacher must submit a competitive bid at
100% of the listing price. The 50% discount will be applied at closing.
(10) Q. Will HUD provide a home warranty?
A. No. All sales are as-is, without warranty of any kind.
(11) Q. Can multiple unit properties (e.g. 2, 3 or 4 unit properties) be made
available under the TND Program?
A. No. Only single unit properties may be offered for the TND program.
(12) Q. Can a teacher offer less than the value established by the M&M
contractor?
A. No. The contract sales price must be the value established by the M&M
contractor.
(13) Q. Will the teacher be required to pay an earnest money deposit when
submitting contract for a property?
A. No.
(14) Q. Will HUD pay a sales commission and/or all or part of the closing
costs?
A. Yes, but the amount is deducted from the teacher’s discount. Example:
The list price is $80,000 and the teacher requests closing costs of $2,000 and
commission of $4,000. With the 50% discount = $40,000, at closing the
teacher’s discount is reduced to $34,000 and the amount due at closing is
$46,000.
(15) Q. Can the teacher sell the property for whatever the value is after the
3 years and keep any profit?
A. Yes.
(16) Q. What happens to a teacher who is separated from their agency within 3
years of the purchase?
A. Nothing. However he/she must be in good standing with the agency when the
contract is signed.
