Teachers are called the backbone of society. They have a big responsibility of molding the minds of future leaders, and, yet, they’re usually not compensated enough.
Achieving your dream home may be difficult, especially at the start of your teaching career. Buying a home anywhere, particularly in metro areas, will require lots of patience and planning. With rising housing costs, the biggest challenge for most teachers looking for a home is financing this investment.
Fortunately, if you’re one of the 3.6 million teachers in the US, buying your dream home might be a lot easier than you think, thanks to homebuyers programs for teachers, designed to help you save on down payments and other fees.
Here are some options for mortgage and housing programs for teachers to help you obtain your dream home:
Hero Home Programs
This is, perhaps, one of the most popular teacher mortgage programs out there. The Homes for Heroes Foundation offers money for housing, as well as emergency financial assistance for community heroes— teachers, firefighters, military veterans, healthcare and emergency workers, and law enforcement personnel.
This program offers discounts via affiliated real estate agents, inspection and title specialists, and lenders. This means you need to enroll and work with a professional who’s within the affiliate network.
It’s estimated that you can save up to 0.7% of the purchase price, and the savings can add up as the purchase price goes up. You can save up to USD$500 savings on lender fees, and anywhere between USD$50 and USD$150 for home inspection and title services. Savings also apply for homeowners who refinance and sellers.
If you’re eligible, it’s definitely worth looking for affiliates of this program in your area to help save.
Good Neighbor Next Door
Another valuable teacher mortgage program, the Good Neighbor Next Door program can help teachers save up to 50% on certain home purchases. This program is also available for other public service employees, such as nurses and healthcare workers, emergency responders, active-duty and former military personnel, and government employees.
This program offers up to 50% off the list price on the US Department of Housing and Urban Development (HUD) foreclosure homes. This applies only if you wish to buy in the revitalization area. HUD creates this discount by taking out a silent second mortgage in order to cover half the home price, so you’re only responsible for paying the other half. This silent lien goes away after you’ve occupied the house for three years and satisfied the program’s primary residence requirements.
Teachers eligible for this program are those teaching in pre-K through 12th-grade public schools. Of course, you need to agree to live in the house for at least 36 months.
Teacher Next Door
A different program than the previous option, the Teacher Next Door program helps streamline the homebuying process for teachers, matching them with a program that best fits their needs.
Unlike the previous program, the Teacher Next Door Program allows pre-K through 12th-grade educators to purchase any home on the market. In addition, this program offers down payment assistance of up to USD$10,681 and individual grants of up to USD$5,000 which don’t have to be repaid for qualifying teachers.
Furthermore, it helps buyers identify private and government programs they might qualify for, securing financing and completing a house purchase. It doesn’t have income restrictions or application fees, or any fee for that matter, to use the program.
Zero-Down Home Loan
The House of Representatives introduced a loan program for educators known as the HELPER Act, short for Homes for Every Local Protector, Educator, and Responder.
This program offers zero-down loan offers under the Federal Housing Administration. If you qualify, you don’t have to worry about your monthly mortgage insurance.
Borrowers need to be employed full-time and have been employed in that position for at least four consecutive years.
Common Mortgage Programs
Not all educators really need a specialized teacher mortgage. In fact, certain home loan programs are already generous and may even exceed the benefits offered by a specific teacher home loan. Some of these include:
An FHA loan is a government-backed home loan featuring a minimum credit score requirement and at least 3.5% down payment.
VA home loans offer no mortgage insurance and no down payment for qualified borrowers. They also offer current low rates and refinancing options of up to 100% of home value.
USDA loans for teachers mean you don’t have to come up with a down payment, as well as worry about private mortgage insurance that’ll leave your bank account dry. Eligibility is based on income and location, and your options for residency include unit development, single-family unit, or a condo.
Purchasing your dream home isn’t as difficult as many teachers think. The government understands your importance as an educator and the valuable service you provide, and, thus, providing you with several homebuying assistance programs so you can finally have that well-deserved roof over your head.
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