Teacher Next Door Program?

Question

Does anyone have experience with the Teacher Next Door Program? (Not the same as GNND)

I'm wondering if I might use it to house hack in my area, or even to invest out of state. Would love to chat with someone knowledgeable.

Stephanie Medellin · Answer

@Adam Laurenzo  Right, I think if you had another agent you wanted to work with, you could ask them if they'd be willing to offer something similar to you.  This is basically what Redfin and other discount brokers do - they rebate a portion of the commission offered to the buyer's agent.  I guess the benefit of this site is that they already have agents who are willing to offer this discount (they already took care of the negotiation for you), and they may be more familiar with down payment assistance programs in your area or state.  As a licensed broker in Florida, they probably get a referral fee from the agent.

But the name definitely confused me, because that used to be the name for the HUD program!  I mean, they probably get a lot of people searching for that program, so they get traffic to their site, but I just felt like it was a bit misleading.

Stephanie Medellin · Answer

I just visited the link you posted (didn't see it before).

At the bottom of this page (https://www.teachernextdoor.us/License.040315) you'll see a disclosure that basically sums it up.  It looks like it's just a Realtor referral program, where the real estate agent agrees to give you a rebate toward closing costs from their commission.

They make it sound very official by saying that they're registered with HUD to sell HUD homes, but I'm also registered with HUD to sell HUD homes - a lot of real estate agents and brokers are.  You have to be registered to place a bid on Hudhomestore.com.  So it doesn't look like they are in any way affiliated with the HUD program, they just took the name and used it for marketing.

Also, you don't need a specific lender to be able to get closing cost credits from your lender.  Any lender can give you a higher rate in exchange for a closing cost credit on many loan scenarios.

Disclosures: Teacher Next Door, PLLC (TND) is 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. Teacher Next Door is a National Home Buying Program and private organization and is not a government agency.  TND is not a lender, has no corporate affiliation with the above preferred lenders and receives no compensation in connection with any mortgage loans.  TND does not sell leads or information and does not collect or store buyer's financial information.  TND direct Grants are funded by participating Realtor® Partners.  TND may also provide information on non-exclusive government grant and down payment assistance programs, where available. Programs vary by state and all grant, down payment assistance and savings amounts are estimates.  You must be represented at closing by a Teacher Next Door Realtor® Partner to receive the Realtor® rebate portion of the TND grant.  Realtor® rebates are not available in AK, KS, LA, MS.  Benefits received may be affected by home price, for sale by owner properties (FSBO’s), new construction or other factors.  You must work with a TND preferred lender to receive additional benefits.

Adam Laurenzo · Answer

@Stephanie Irto Thanks for deciphering that. So is this basically just a marketing scheme- nothing I wouldn't be able to access through any other means?

Stephanie Medellin · Answer

It must be another program by a similar name, but not through HUD.  The HUD program discontinued Teacher and Officer Next Door quite a few years ago and created Good Neighbor Next Door.  I found this article:  https://www.federalregister.gov/documents/2006/11/...

Do you know what organization offers the program you're thinking of?

Adam Laurenzo · Answer

@Stephanie Irto I'm absolutely positive. GNND is all but dead, at least in my market (I am to understand this is partly because it relies on foreclosures, which haven't been happening). I'd jump on it if they ever had any listings here. Teacher Next Door seems to provide loans/closing cost relief, rather than houses. I'm struggling to find details; however.

Stephanie Medellin · Answer

@Adam Laurenzo  Are you sure it's not the same as Good Neighbor Next Door?  GNND is for teachers, firefighters, law enforcement officers, and EMTs.  I thought Teacher Next Door was the old name for the program.

You have to live in the property for a minimum of 3 years to have the 2nd lien released.  It is not for investment properties.  I believe it's for 1 unit properties only.  Even if you see a 2 unit property listed as a lottery property, it is most likely an error.

Depending on your area and market, if the 50% discount is large enough, it can be a great way to gain a lot of equity.

Teacher Next Door Program?

Most Popular Reply

Contact Us