Teacher Next Door Program FAQ

Common Questions and Answers:

1. How much of a discount do I get on my home?

HUD’s Teacher Next Door discount is 50 percent off the sales price of the home. For example, if you bid successfully on a Teacher Next Door home listed at $100,000, your sales price is $50,000.

2. Who is eligible for HUD’s Teacher Next Door initiative?

Any state-certified classroom teacher or administrator employed full-time by a public school, private school or federal, state, county or municipal educational agency is eligible to buy a Teacher Next Door home.

3. Where are the Teacher Next Door homes located?

In specially designated revitalization areas. The home must also be located in the school district where you work. There are over 600 revitalization areas across the country. Under HUD's Dollar Homes Initiative, teachers may have an opportunity to purchase HUD homes outside revitalization areas after an offering to local governments.

4. Can I get a HUD/FHA loan for a Teacher Next Door home?

Yes, if you qualify, HUD’s Federal Housing Administration (FHA) offers low down payment loans. Your down payment can be as low as $100 if you purchase your TND home with an FHA-insured mortgage. Call us at 1.800.217.6970 to learn more about these loans.

5. Can HUD help me pay for improvements on my Teacher Next Door home if necessary?

Yes, HUD has a loan program – 203(k) – designed especially to help homebuyers both purchase and rehabilitate a home.  

6. How long do I have to live in my Teacher Next Door home?

Three years, as your sole residence.

7. Do I have to use a Realtor to buy a Teacher Next Door home?

Most people use a realtor when buying a home, but you are not required to. You may buy your Teacher Next Door home directly from HUD or use a realtor to arrange the sale for you, but you must pay the realtor’s fees.

8. Can a teacher purchase a property at the 50% discount outside of the area where he/she is employed?

No. The Teacher must purchase a home in the school district/jurisdiction in which they are employed.