Do Teachers Get Special Mortgage Loans? 10 Mortgage Options for Educators

Do Teachers Get Special Mortgage Loans? 6 Mortgage Options for Educators

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Homeownership is one of the most important steps you can take to build wealth in this country, yet it can seem out of reach for many people. Fortunately, for certain professions, such as teachers, assistance is available to make the dream of homeownership come true. Teachers can take advantage of special loans and deals that are offered to help those who work so hard to help others.

Here we take a closer look at some of the unique programs available to help teachers purchase their new homes and how you can apply for them. While these programs may require additional work, the amount of savings they can offer makes it worth the effort.

Once you learn about the available home mortgage programs available for teachers, you can be quickly on your way to purchasing and moving into your dream home.

Key takeaways

  • Special mortgage loans exist for teachers to make buying a home easier.
  • Types of mortgages include fixed-rate, adjustable-rate, shared ownership, buy-to-let, and government-backed.
  • There are six mortgage programs for teachers, offering lower rates, down payment assistance, and discounted fees.
  • Benefits include lower rates, down payment assistance, and discounted fees for real estate agents and closing costs.
  • Teachers should explore options to invest in a home that builds future wealth. Contact Hero Home Programs™ to learn more.
Do teachers get special mortgages

Are there grants and home loans available for teachers?

There are various home loan programs designed to assist teachers in purchasing their new homes. These federal or local programs offer everything from grants to cover closing costs and fees to financial assistance that can save you thousands on your new mortgage.

Different mortgage types for teachers

Mortgage rates are not all the same. Before shopping around for a lender, become familiar with the different available rates so that you can make the best choice when searching for mortgage help for teachers.

1. Fixed-rate mortgages

A fixed-rate mortgage, sometimes called an FRM, is a mortgage loan where the interest rate does not change throughout the term of the loan. This can greatly benefit a homeowner by allowing them a constant and reliable monthly payment that can be worked into their budget.

2. Adjustable-rate mortgage

An adjustable-rate mortgage, sometimes called a variable rate mortgage, is a mortgage loan in which the interest rate will periodically adjust to reflect the credit market trends. This kind of loan can be easier to get than a fixed-rate mortgage but can be unpredictable. If interest rates fall, the borrower will benefit from decreased payments. However, the opposite is true if the interest rates increase.

3. Shared ownership schemes

Shared ownership schemes, also known as equity sharing, make stepping up to homeownership a bit more reasonable for those who might otherwise have trouble getting a loan. With shared ownership, a person purchases a share of the property (usually anywhere between 25 and 75%) and has the option to buy more or all of it at a later time. You may buy in increments.

4. Buy-to-let mortgages

Popular in the United Kingdom for some time and becoming increasingly popular in the United States as a way to buy rental properties, buy-to-let mortgages help investors purchase a home that is subsequently rented out for profit. For these kinds of loans, the down payment and interest rates can be higher than other types of loans.

Benefits of special mortgage loans for teachers

Home loans designed for teachers and educators can offer a wide range of benefits for those looking to purchase a new home. Some of the main benefits can include the following:

  • Home price discounts
  • Zero to low down payments
  • Down-payment assistance
  • Lower interest rates
  • Waived closing costs
  • Grants that require no payback
  • Flexible qualification guidelines
  • Lower credit score requirements on some programs

Special mortgages loan and deals for teachers

Not only are teachers eligible for special loans and deals, but it is greatly to their benefit that they take advantage of them. Investing in a home purchase is a huge step, and special rates are hard to come by for most people.

Fortunately, as members of a helper profession, teachers can procure rates that are not available to most of the buying public. Here is a comprehensive list of the mortgage programs available to teachers.

10 mortgage programs for teachers

Now that you know about the available types and its benefits, let’s take a look at the mortgage deals for teachers.

1. Hero Home Programs™

Hero Home Programs™ helps teachers save thousands of dollars when buying a home. Available to first responders, healthcare workers, teachers, and other heroes, they will provide access to affiliates with competitive rates, as well as help you save money on related services such as real estate agents, title companies, home inspectors, and more.

2. Teacher Next Door

Teacher Next Door is a HUD program that finds federal, state, and local home loan programs for educators. Depending on the area, a teacher who qualifies can save several thousand dollars and may also qualify for additional down payment assistance.

3. Educator Mortgage Program

The Educator Mortgage Program offers various benefits like a faster turnaround time for loans, discounted closing costs, and discounted real estate agent fees.

4. Landed Down Payment Support

It can be difficult to impossible for some professionals to gather enough money for a down payment on a house. Landed Down Payment is a shared equity down payment program that supports essential professionals like teachers, helping them reach a 20% down payment so they can avoid paying private mortgage insurance.

5. Good Neighbor Next Door

Teachers and educators looking to purchase a home near their school may benefit from the Good Neighbor Next Door program. This program offers teachers a 50% listing price discount when buying a home in a specific revitalization area. The home must be your primary residence for at least three years or you will be required to repay the U.S. Department of Housing and Urban Development (HUD) for half of the 50% discount they covered.

6. Teacher Next Door Fresh Start

As a part of the Teacher Next Door Program, the Teacher Next Door Fresh Start program is designed to help teachers with troubled credit history fix and repair their credit challenges in order to qualify for a home mortgage.

7. Homes for Heroes

Homes for Heroes is a program that helps teachers reduce their closing costs and other fees associated with closing, such as inspection fees and title fees, in order to reduce the amount necessary to close on your new home. On average, this program can save teachers up to $2,400.

8. Local Teacher’s Union

Local teacher’s unions often offer member benefits that can include reduced interest rates, private mortgage insurance, waived fees, and expedited loan processing in order to help their teachers secure a new home mortgage. Meeting directly with your local teachers’ union allows you to learn what benefits are available and how they can help you purchase your new home.

9. Local home loan programs for teachers

You may check with your state to discover whether statewide loan programs are available to educators that aren’t offered on a national level. Most states have loan programs available for teachers to get a special mortgage rate.

10. Government-backed mortgage

The above options are just some of the programs available for teachers to get a mortgage deal. There are also government-backed mortgage programs that may assist.

VA loans

Available to all active-duty military, veterans, and qualified survival spouses and offer the benefits of no down payment and no mortgage insurance for qualified buyers. If a teacher has served in the past or their spouse has served in the military, a VA loan may be an option to consider.

FHA loans 

With two years of steady employment and qualifying factors such as DTI, you may be eligible for an FHA loan. This loan offers a low monthly rate and a minimum 3.5% down payment.

USDA loans

Available to educators, depending on the income and location of the property to be bought. Check to see if they are available to you because you don’t have to come up with a down payment or pay for private mortgage insurance with a USDA loan.

Eligibility requirements for obtaining teacher mortgage loans

Eligibility requirements for a teacher mortgage loan or assistance program will vary depending on the program itself. For example, some programs are open to teachers and support staff, while others are only open to teachers. In addition, some require teachers to work at a public school in the community while others are open to both public and private school teachers. What grade you teach can also determine which programs you may qualify for, as some are limited to K-12.

Depending on the teacher home program you qualify for, the home you purchase may need to meet certain requirements. For example, the Good Neighbor Next Door program works for homes in specific revitalization areas that are within a certain distance from the home where you teach.

Requirements for obtaining teacher mortgage loans

While there are specific requirements for the teacher mortgage loan programs, there are also traditional loan requirements for obtaining a mortgage. While the teacher programs may reduce some of the general requirements, those looking to obtain a mortgage will need to have verifiable income, meet the minimum credit score requirements, and have cash available for a downpayment and closing costs, unless these are covered through another program.
In addition to meeting general requirements, you will also need to find a lender that works with the available mortgage programs for teachers.

Process for applying

Applying for teacher home mortgage loans and programs varies depending on the program. For example, for the Good Neighbor Next Door program, you work with a participating real estate agent who will provide listings of homes in the area that qualify for the program. Applications for the Teacher Next Door program can be found online and will connect you to lenders that work with the program.

Challenges of getting mortgage loans for teachers and educators

While there are a wide variety of different programs available to teachers and educators, there are limitations. Not all lenders work with these programs, so it is important to look for real estate agents and lenders in your area that participate in these programs. In addition, programs like the Good Neighbor Next Door program limit your buying choices by only qualifying homes in specific revitalization areas.

Are teachers’ home-buying programs worth it?

Depending on which programs you qualify for, teachers’ home-buying programs can definitely be worth it. With the right programs, buyers can save thousands of dollars on the purchase of their new home. While these programs do require additional paperwork and requirements, the extra effort can make all the difference when it comes to saving on your new home.

Contact us today!

Our teachers are so important. It’s their hard work that shapes the next generation, and as essential workers, they deserve a hand up in the homebuying process. Educators are a good financial risk, with steady jobs and incomes. Even if a teacher’s income isn’t enough to cover a down payment, there are many programs available for assistance. Explore your options and invest in a home that can make your money work for you.

Contact Hero Home Programs™ today. Their dedicated team will work tirelessly to save you money on your mortgage and the additional fees that come with purchasing a home.

Picture of Jacquelyn Sublett
Jacquelyn Sublett

I love teaching and writing on real estate, finance and mortgage topics. I find it fulfilling hearing stories of first time home buyers who we have helped with the home buying process. Writer for the Hero Homebuyer Programs™

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