Attention Teachers:

Find out how you can buy a home in Salem

for $50,000 or less, with only $100 down!

 The U.S. Department of Housing and Urban Development (HUD) wants to make American communities stronger by encouraging educators to buy homes in low and moderate-income neighborhoods through their Teacher-Next-Door program.

Who is eligible?

The program is open to any person employed full-time by a public or private school, or federal, state, county or city educational agency as a state-certified classroom teacher or administrator in grades K-12.

You do not have to be a first-time homebuyer to participate, but you cannot own any other home and you must agree to live in the HUD home as your only residence for 3-years after you move into it.

How can you participate?

TND property is listed and sold exclusively over the Internet.  Properties are single-family homes located in Revitalization Zones in Salem.  There are four Revitalization Zones in Salem, located in zip codes 97301, 97302, 97303 and 97304.

Bids are awarded once each week.  You bid must be for the exact list price.  You may submit your bid by utilizing the services of a real estate broker.  A computer randomly selects the winning bid.  The winning bid is posted each week on the website where the bid was placed.

What are the benefits for educators?

The selected bidder may purchase the property at a 50% discount from the list price.  For example, if a HUD home is listed for $100,000, an educator can buy it for $50,000. 

To make a HUD home even more affordable, you can apply for an FHA-insured mortgage with a downpayment of only $100 and you may finance all closing costs.

If the home you want to purchase needs repairs, you may use FHA’s 203(k) mortgage program.  This program allows you to finance both the purchase of the home and the cost of needed repairs.  You have the benefit of one loan for both costs and one monthly payment. Because homes sold through the TND program are located in Revitalization Areas there may be additional assistance from state or local government sources.  Your OEHB lender can explain these options to you and find out if you qualify.

How can you participate?

TND property is listed and sold exclusively over the internet.  Properties are single-family homes located in Revitalization Zones (see below).

Bids are awarded once each week.  You bid must be for the exact list price.  You may submit your bid by utilizing the services of a real estate broker.  A computer randomly selects the winning bid.  The winning bid is posted each week on the website where the bid was placed.

What is a HUD home?

When someone with a HUD insured mortgage is unable to make their payments the lender forecloses on the home; HUD pays the lender what is owed; and HUD takes ownership of the home.  The home is then offered for sale to the general public at market value on a bid system.

Most homes are affordable for low– and moderate-income Americans.  HUD homes are sold “as is,” without warranty, but they are priced to reflect needed repairs.  In some cases, HUD might offer special incentives or allowances to upgrade the property.  In most sales, the buyer can request HUD to pay all or a portion of the financing and closing costs.

Is a deposit required?

Yes and No.  If you choose an FHA insured mortgage, such as the FHA 203(b) or FHA 203(k), you only need a $100 downpayment.  If you get a conventional mortgage, your mortgage lender sets the amount of the downpayment.  You don’t have to pay any other earnest money deposits.

Can I offer less than the amount determined by HUD for a TND property?

No, you must always offer the exact HUD list price when “bidding” on any TND property.  The 50% discount will be deducted at closing.

Can I sell the Teacher-Next-Door home after 3-years and keep the profit?

Yes, if you sell the TND home after living in it 3 years, you may keep any profit.

What happens if I leave school, for any reason, during the 3-year required residency period?

Nothing, but you must continue to live in the home for the full 3-year required occupancy period or re-pay HUD on a prorated schedule.

How does HUD enforce the 3-year residency requirement?

In the beginning, and once a year thereafter, you must certify that you are living in your TND home as your only residence.  HUD will conduct “spot checks” to guarantee program compliance.

What happens if I don’t honor the 3-year residency requirement?

HUD could demand re-payment of the discounted amount in full, or, on a prorated basis.  The pro-rated re-payment is 90% of the discount during the first year, 60% during the second year, and 30% during the third year.

How do I get started?

Just take 4 easy steps:

1. Call an OEHB coordinator at 877-568-6130 or email Paula at oehb@prurep.com, and say that you’re interested in HUD’s TND Program
2. OEHB will send you a package outlining the entire HUD TND program
3. An OEHB representative will set you up with a HUD-approved lender who will get you pre-qualified.
4. Your OEHB representative will take you through the Teacher-Next-Door bidding process