What Are Teacher Home Loans?

One of the financial benefits of being a teacher is qualifying for a special home loan that includes a low rate guarantee and discounted fees. HUD introduced the teacher home loans with the Good Neighbor Next Door program that is designed to reward teachers when they buy a house in low or moderate-income neighborhood. Under the Teacher Next Door program, the school must certify that the borrower is a teacher working full-time or a school administrator.

Compare Hero Loans and Interest Rates on Special Teacher Mortgage Programs in 2024

Teachers are encouraged to apply for an FHA mortgage with a $100 down-payment. HUD also allows teachers to finance their closing costs. In most cases, borrowers are prohibited to finance the lender fees and closing costs on home buying transactions. Compare rates and Teacher loan terms now.

California has widely embraced the HERO loan program. Over 85% of the state’s residents can benefit from HERO loans. These loans can be utilized for a diverse range of energy-efficient and water-saving upgrades, with some of the most popular options including solar panels.

Is the Teacher Next Door Loan Program for Home Buying?

The only catch for teachers financing a home with this program is that the home-buyer cannot have owned another house for one year prior to the time a purchase offer was given to the Realtor. In addition, borrowers must agree to reside in the property for three years without buying an additional home during that time frame. If buying a HUD home at a discount isn’t enough, there are also home financing incentives that are offered exclusively to teachers.

Follow the steps to apply for a teacher loan and verify if a specific home you are interested is eligible. If more than one eligible adult submits an offer on a single home a selection will be made by random lottery. You must meet the teacher home loan requirements for a police officer, teacher, firefighter or emergency medical technician while also complying with the Department of Housing and Urban Development’s regulations for the TNDL program. Learn more about HUD’s Rules for the Teacher Next Door Program.

Find Out If You Qualify for the Teacher Next Door Mortgage Loan

Our lenders have helped thousands of teachers get approved for unique home purchase mortgages. Take advantage of BD Nationwide’s experience connecting banks and lenders with teachers that deserve the best home financing and cash back refinancing available. Whether you need a help getting a little extra money with a 2nd mortgage or a complicated purchase of multiple homes, we have the staff to meet your finance needs without making your life stressful. We strongly recommend that teachers consider these nearly $0 down home loans with discounted rates and terms while they are so readily available.

  • Low Rate Guarantees for Teacher Loans
  • Discounted Lending Costs on Hero Loans
  • Reduced Down-Payments from Government-Backed Providers

Several local, state, and federal programs provide eligible teachers with discounts on homes and attractive mortgage terms. For instance, the Good Neighbor Next Door program sells homes for 50% off the appraised value, while other initiatives offer down payment assistance, homeownership grants, and mortgage credit certificates.

What is the Good Neighbor Next Door Program?

The Good Neighbor Next Door program offers single-family homes owned by the U.S. Department of Housing and Urban Development (HUD) to eligible buyers at a 50% discount from the list price. Not all HUD homes qualify for the Good Neighbor Next Door program; they must be situated in a revitalization area and within the same area or school district as the buyer’s place of employment. Borrowers must also fulfill a three-year residency requirement.

Teachers intending to purchase a home through this program must be employed full-time in a state-accredited public or private school catering to students from pre-K through grade 12. It’s worth noting that the Good Neighbor Next Door program is not exclusively for teachers; it is also available to eligible firefighters, EMTs, and law enforcement officers.

California Teachers Should Consider the Extra Credit Teacher Home Purchase Program, AKA, ECTP

This ECTP program was created for teachers, school administrators, education district employees and staff members working for any California Kindergarten through 12th grade in public schools located in the state of California. This even includes Charter schools and continuation schools that are endorsed by the counties. The only ‘catch’ is that borrowers must be considered a first-time home buyer.

ECTP second mortgage or HELOCs range from $7,500 to $15,000 depending on the area in which the house is being bought, and can only be combined with an approved CalHFA loan held in first position on title. ECTP second loans can only be used for the purpose of meeting the down payment requirement or to pay for closing costs associated with the Teacher home loan. Learn more about the CALFA loan for CA Teachers. Are you interested in buying a home loan in California with down-payment assistance from CALHFA, but not a teacher?

The Department of Housing and Urban Development introduced unique teacher home loan incentives a few years ago. This entitlement program offers a 50% discount on single-family houses, townhouses and condominiums that are sold to a teacher. The qualified teacher may buy the HUD-owned home discounted up to 50% from the list price. The “Teacher Home Loan” is a unique program that reduces the costs and interest for qualified teachers looking to maximize the benefits of today’s special financing initiatives.