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Special mortgage financing, with flexible qualifying guidelines, is available for teachers.
One of the most popular names under which special mortgage financing for elementary and high school teachers is available is the "Teacher Next Door" program.
The Teacher Mortgage Program is intended to help teachers and administrators live in the communities of their choice despite high housing costs.
The Teacher Next Door Program offers HUD-acquired, single family homes to teachers at 50% off the purchase price. Single-family detached homes, condominiums and townhouses are all included. The teacher must purchase a home in the same school district/jurisdiction in which he/she is employed and must reside in the home as their sole residence for at least 3 years. After the 3-year period, the teacher may sell the property and keep any profits.
The federal government sets the eligibility rules. The Teacher Next Door Program is open to any state-certified classroom teacher in grades K-12, who is employed full time by a public school, private school, or federal, state, county or city educational agency (ESP, student, administrator and retired members are not eligible, as defined by HUD).
While teachers are able to get houses for up to 50% off the purchase price, there are areas that don't have very many of these types of houses available. In these areas teachers are able to get into 100% loans that offer extremely competitive rates. Your mortgage broker should be able to assist with these loans.
Many teachers' incomes may allow one to qualify for Community Reinvestment Act (CRA) money, bond issue money, or for other special programs offered by the particular state in which they reside. Contact your mortgage professional for details.
If you are a teacher one of the best ways to learn about teacher loan programs is to ask some teachers you work with who have used them to buy a home. They will have a lot of great experience and opinions that they can share with you about home buying and teacher loan programs. They may even be able to recommend you to a good lender that assisted them with their purchase.
Do they have to be submitted to fha, calhfa? how long do these puppies take to close? thanks
Another program that is available in certain areas for teachers is called the Heroes Program. This program is actually available for a variety of different people, such as military, policemen, firemen, etc... Generally, this program can help to be able to obtain a little bit better interest rate and has somewhat reduced qualifying guidelines. This program is similar to the HomePossible and the Neighborhood Solutions Programs. The program does not seem to be offered in all areas, so ask your mortgage broker if they are familiar with this program first.
» DISCLAIMER: The information contained in this article on 'Teacher Loans' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.
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