7 Home Loans for Teachers (and How to Apply for Them)

photo: Monashee Frantz/Getty Images
house outline: Greg Chow

People, we have a crisis on our hands: a teacher crisis. One reason for the squeeze: real estate. Rising housing costs and interest rates can prevent teachers from getting a mortgage and living in the districts they serve, creating a lack of teachers everywhere, from Seattle to San Francisco, to Virginia’s Fairfax County.

But did you know that several organizations and lenders offer home loans and mortgage help for eligible teachers? Below are seven programs and lenders that can help teachers get funding for a home.

1. Good Neighbor Next Door

Developed by the U.S. Department of Housing and Urban Development, this program was created for eligible teachers and other civil servants, including firefighters, law enforcement officers, and emergency medical technicians.

It offers a 50% discount on HUD-owned homes located in “revitalization areas”—regions with high foreclosure rates and low homeownership—nationwide.

Here’s the catch: Applicants are not permitted to own a home already. They must also commit to using their new house as a primary residence for three years—if they don’t, they will be required to pay the full cost. See homes available through the loan program at HUDHomes.

2. HUD Teacher Next Door

HUD’s Teacher Next Doorconnects educators to a wide variety of home loans and down payment help for teachers—including Good Neighbor Next Door—helping applicants find local programs and organizations that reduce mortgage rates and closing costs and provide down payment rebates.

Housing in this HUD program isn’t restricted to federally designated revitalization areas, and there are no residency requirements.

3. Educator Mortgage Program

Mortgage bank and lender Supreme Lending’s Educator Mortgage Program offers up to $800 in loan discounts on closing costs and real estate agent fees on home loans for teachers, as well as a speedy loan turnaround and a $400 donation to the school program of their choice.

Available for all teachers and school district employees, the program requires a minimum credit score of 620, but it doesn’t discriminate based upon previous bankruptcy or foreclosure.

4. Homes for Heroes

Intended for firefighters and military veterans as well as teachers, this program discounts 25% of your real estate agent’s fee when buying and selling, as long as you use an agent or broker who has signed up as a program affiliate.

Applicants also receive reduced closing and home inspection fees.

5. Community lending programs for educators

Through a partnership with the United Federation of Teachers, educators may receive a loan through the Union Assist Program at ICC Mortgage. The loan program offers zero or reduced interest, lower fees for processing or underwriting, as well as financing discounts.

6. Home loans for teachers at the local level

For Californians working in an underperforming school, the Extra Credit Home Purchase Program can provide mortgage tax credits to reduce the total they owe to the federal government. Participants must be first-time buyers and meet income and home price limits, which vary by county.

In Baltimore, the Housing Authority offers $5,000 toward a qualifying down payment on home loans for teachers, and the Texas State Affordable Housing Corp. offers fixed-rate Teacher Home Loans and down payment assistance grants.

Many states offer similar home loans, help with down payments, and mortgage assistance for teacher programs. In many cases, Teacher Next Door can connect qualified buyers with the appropriate grants, or you can search for home loans for teacher programs in your state.

7. Teacher-specific housing

In some areas, housing designed or earmarked for teachers is available. North Carolina teachers in Dare County can sign up for DARE, affordable housing complexes rented at below-market rates.

For New York City residents, Teacher Space New York connects teachers with affordable housing, based on income. And in Baltimore, Union Mill, an “urban oasis for teachers and nonprofits,” offers up to a $600 rent discount for teachers.

Your local school district or teachers union should have more information about available educator-only housing.

Article by Jamie Wiebe