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, there is assistance 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.
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.
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.
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.
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 an option to buy more or all of it at a later time. You may buy in increments.
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 which 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.
Now that you know about the available types, let’s take a look at the mortgage deals for teachers.
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.
6 Mortgage Programs for Teachers
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.
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.
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.
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.
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.
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 are 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.
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 may be 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.
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.