The teacher shortage is a growing concern, with 36,000 open positions nationwide. Stress from COVID-19 and low wages contribute to the issue. Public school teachers shape future generations, and supporting them both in and out of the classroom is essential. One way to do this is by exploring Home Buying Options for Teachers. Which can help educators achieve stability and financial security.
To encourage more caring instructors to join the ranks, the U.S. government and many private companies have programs in place to help teachers financially, including some that make becoming homebuyers easier. If you are a teacher or thinking of becoming one, consider the following options that could lift you over the homeownership hurdles you might face.
Good Neighbor Next Door (GNND)
The GNND is financed by the U.S. Department of Housing and Urban Development (HUD) as a way to help teachers and first responders buy homes in communities that need revitalization. Qualified borrowers can buy HUD homes for as little as 50% of the listing price. The requirements include purchasing a home in the same revitalization area where the teacher works and a 3-year commitment to live in the home as a primary residence.
The Teacher Next Door (TND)
Sponsored by a private agency, the TND program connects pre-K – 12th-grade and other public servants with housing assistance plans. They directly offer free grants that never need to be repaid up to $8,000 in some areas and up to $10,681 that can be used for down payments. While borrowers must work with TND agents and use its lending network, it can provide teachers with low interest rates, discounts on title insurance, rebates on appraisals and real estate agent fees, as well as waivers on application and broker fees. All of that can add up to some major savings. Plus, you can combine the TND with first-time homebuyer programs like Fannie Mae’s HomeReady, Freddie Mac’s Home Possible, or the Good Neighbor Next Door for even greater benefits.
Homes for Heroes®
This program specifically helps reduce fees and closing costs for teachers and other civil servants in order to make home buying more affordable. You can also combine Homes for Heroes with other housing assistance programs.
Teachers Union Assistance
If you are part of a teacher’s union, it might offer special mortgage programs or discounts. Eligible AFT members can get loans through Union Plus Mortgage Company or Amalgamated Bank. Benefits include fee discounts, closing cost rebates, and a first-time buyer program allowing down payments from gifts or grants.
For those who are a part of the National Education Association (NEA), a program through the First National Bank of Omaha allows borrowers to pay no application processing, or origination fees.
State and Local Teaching Assistance: Home Buying Options for Teachers
There are hundreds of state or county programs that help teachers become homeowners. For example, the Mississippi Employer-Assisted Housing Teacher Program gives teachers working in underserved areas of the state up to $6,000 for closing costs. You can check with your lender or state and local websites to see what options are available.
While a teacher’s salary may make it seem impossible to realize the dream of homeownership. There are plenty of gifts, grants, and programs out there to help our valued educators afford the experience.
If you or someone you know would like to buy a home, please give us a call today. We love to help others achieve the American dream of homeownership.
These materials do not come from HUD or FHA and have not been approved by HUD or any government agency.
