A Resource Guide To Home Buying Programs And Home Loans For Teachers

Many teachers face financial struggles, such as student loan debt. But did you know that educators may qualify for some of the best mortgages in the marketplace? Home loans for teachers and specialized teacher mortgage programs are specially designed to help educators buy a home.

Follow along to learn more about home loans for teachers and teacher home buying programs that can make homeownership a reality.

Teacher Home Buying Programs

There are several home buying programs and loans that offer benefits specifically for educators. These programs usually offer deals in the form of lower fees or down payment and closing cost assistance. Let’s dive into these resources below.

1. Teacher Next Door^® Program

Teacher Next Door^® (TND) is a home buying program offered by the Department of Housing and Urban Development (HUD). It’s designed specifically for public service professionals and teachers. To be eligible for TND, you must be a full-time pre-K through 12th grade teacher.

Any home on the market may be purchased through TND. The program offers home buying grants for teachers up to $8,000 in qualifying areas and down payment assistance up to $10,681. Teacher Next Door^® requires borrowers to work with a preferred lender. Rocket Mortgage^® is not a preferred lender at this time.

2. Good Neighbor Next Door Program

Civil servants and their administration can contribute to community revitalization while buying a home through HUD's Good Neighbor Next Door (GNND) home financing program. Civil servants include law enforcement officers, pre-K through 12th grade teachers, firefighters and emergency medical technicians.

Under this program, eligible properties are also owned by HUD. HUD offers a substantial incentive for eligible teachers in the form of a 50% discount from the list price of foreclosed homes in designated revitalization areas.

These areas are typically in need of economic development. GNND is designed to encourage professionals to buy a home in these areas. To qualify for GNND, borrowers will need to work with a preferred lender. At this time Rocket Mortgage is not a preferred lender.

3. Homes For Heroes^®

Homes for Heroes^® is a home buying program available to teachers, law enforcement officers, firefighters and health care workers. This program can help you save on fees like closing costs, and can often be combined with other incentive programs.

Homes for Heroes^® wants to thank every hero in the nation. They have a nationwide network of real estate specialists familiar with the program that can help guide you through the home buying process. You’ll need to be a current or former pre-K through 12th grade or postsecondary teacher and work with a participating lender to qualify.

Rocket Mortgage is not a participating lender at this time.

4. Teachers Unions

Teacher unions are organizations that represent the interests of teachers. If you belong to a teacher’s union, it may offer teachers special mortgage discounts.

The United Federation of Teachers (UFT) is a teacher’s union that represents teachers and other educational professionals in the New York City public school system. The UFT offers a variety of programs and services to its members, including access to home buying assistance.

If you’re a member of the UFT, you may qualify for one of UFT’s discount programs. Specifically, the programs offer mortgage discounts to qualifying members so they can purchase a home, refinance, take out a home equity loan and more.

5. American Federation Of Teachers (AFT) and National Education Association (NEA)

The American Federation of Teachers (AFT) and the National Education Association (NEA) are national unions that represent the interests of teachers and other educational professionals throughout the U.S.

Their mortgage programs are available to members and their spouses, parents and children. They provide low, competitive rates, and a range of options to help you find the solution that’s right for you and your family. Pay no loan application, organization or processing fees.

If you’re a member of the American Federation of Teachers (AFT), you may qualify for one of their two programs. Check with your state or local union to see what types of assistance they may offer.

6. Educator Mortgage Program

The Educator Mortgage program is a home buying program designed specifically for teachers and other educational professionals. The Educator Mortgage Program offers qualifying members a variety of financing options and incentives to help eligible teachers purchase a home, including:

• Reduced closing costs
• Discounted REALTOR^® fees
• Waived lender fees
• Fast loan processing
• Competitive interest rates
• Donation to the member’s school

7. Fresh Start Credit Repair™ Program

TND Fresh Start Credit Repair™ is a part of the TND program. This program helps buyers raise their credit scores to make homeownership a reality. Consultations are free, so consider applying for the TND Fresh Start program to start raising your credit score.

8. Teacher Credit Unions

Teacher credit unions are financial institutions specifically designed to serve teachers and other educators. For example, Teachers Credit Union, now known as Everwise, has helped aspiring individuals, families, businesses and organizations create, manage and achieve financial success since 1931.

9. Down Payment Assistance For Teachers

Down payment assistance programs for teachers are designed to help home buyers who don’t have enough money saved for a down payment, which can be a significant barrier to homeownership. Conduct research to discover local down payment assistance programs.

10. State And Local Programs Providing Mortgage Loans For Teachers

State and local governments may offer home loan programs for teachers and other educators. Check with your state for home loan teacher programs that aren’t offered federally. There may be home buying grants for teachers or other bonuses specific to your neighborhood.

These programs typically provide financing options, down payment assistance, counseling and other resources to help teachers buy a home. Check out your state’s programs to determine if you’re eligible and see what loan programs are available in your state. Here are a few examples of some state and local programs across the U.S.:

• The Colorado Housing and Financing Authority (CHFA)
• California Housing Finance Agency (CalHFA)
• Homes For Texas Heroes

11. First-Time Home Buyer Assistance Programs

First-time home buyer assistance programs aren’t specifically designed for teachers, but they can still be helpful. If you’re a first-time home buyer, utilize your lender or real estate agent to see what programs are available to you.

TND does offer a first-time home buyer assistance program for teachers and school employees. These programs may provide down payment assistance, lower interest rates or other benefits to help make homeownership attainable.

12. Government-Backed Loans

Additionally, there are other government-backed home loans for teachers with less strict eligibility requirements. We’ll highlight your other options and the details for each one below.

• Federal Housing Administration (FHA) loan: An FHA loan offers homeowners many benefits, including low down payment amounts, lower credit score thresholds and limited closing costs.
• Department of Veterans Affairs (VA) loan: A VA loan offers favorable interest rates, 0% down payment and no private mortgage insurance. To qualify for a VA loan, you must be a veteran, active service member or eligible spouse.
• U.S. Department of Agriculture (USDA) loan: A USDA loan is available for people living in rural areas. They’re backed by the USDA, which allows lenders to offer lower rates and a 0% down payment. To qualify for a USDA loan, you must have a low- to moderate-income and live in an eligible rural area. Rocket Mortgage does not currently accept USDA loan applications.

Tips For Teachers Getting A Mortgage With Student Loan Debt

Here are some helpful tips for teachers with student loan debt who want to buy a house.

• Consider a larger down payment. Save for a larger down payment to get a lower monthly mortgage payment and improve your chances of mortgage approval.
• Choose the right mortgage option for you. Choosing a suitable mortgage option can help you find a loan with terms that fit your financial situation and goals.
• Calculate how much you can afford. Calculating how much house you can afford before your house hunt can make sure that you’re not shopping for homes outside of your budget.
• Find the right lender. Choose a lender that understands your unique financial situation and is willing to work with you to find the right loan. You can do this by shopping around with different lenders before selecting one.

FAQs On Home Loans For Teachers

Here are a few answers to commonly asked questions about home loans for teachers.

Are there home loans for teachers with bad credit?

Fortunately, there are also options for teachers with credit scores that aren’t high enough to qualify for conventional mortgages. Many of the above government-backed loans – such as VA loans – work for borrowers buying a house with bad credit.

Do teachers get a discount on mortgage rates?

It’s not common for teachers to get a discount on mortgage rates simply for being a teacher. However, there are some mortgage programs and lenders that may offer special discounts or incentives for teachers.

Are teacher home loans always best for teachers?

It’s important for teachers to research all their options and compare different loan programs to find the best fit for their specific situation. While teacher home loans may be a good option for some, they may not always be the best choice.

The Bottom Line: Teacher Mortgage Programs Make Home Buying More Affordable

Buying a home is possible for teachers. If you’re an educator with student loan debt, specialized programs can help you become a homeowner. Conduct your own research on home loan options and programs for teachers to find one that best fits your needs. If you’re ready to start your home buying journey, check your credit score and research mortgage programs you could qualify for. Then, start the mortgage approval process today with Rocket Mortgage.