No matter how much time you’ve spent in the classroom, there’s always something new to learn. When it comes to learning how to save, exploring teacher home loans and assistance programs can definitely earn you a spot at the head of the class. More importantly, it may help you join the ranks of homeowners. There are several programs that offer special mortgages or discounts for common expenses in order to make it easier for educators to buy a home.
Exploring Teacher Home Loans
Teaching is not a profession for the fainthearted. According to We Are Teachers, teachers work an average of 400 hours of overtime each year, and despite the fact that roughly 30 percent of them also work a second job, the majority of teachers spend their own money to provide necessary supplies for their classrooms or to cover basic costs for their students.
This giving spirit is probably a large part of the reason that nearly 90 percent of people say that a teacher had a “significant, positive impact” on their lives. Now, many organizations and municipalities are giving back to teachers by providing special mortgage programs that make buying a home more affordable for educators.
Good Neighbor Next Door
What if someone told you that you could buy a home for half its listed price? While it is always smart to be wary of a bargain that seems too good to be true, this is one fabulous deal that shouldn’t be dismissed out of hand. With the Good Neighbor Next Door program offered by the U.S. Department of Housing and Urban Development (HUD), it is possible to purchase a single-family home at a massive discount.
How does this nationwide program work? HUD offers a limited but ever-changing selection of homes in revitalization areas, or places with low homeownership and high foreclosure rates. These properties are listed exclusively through the program for one week, and the listings change every week. You can find the listings online and submit an offer there. If your offer is selected, you’ll be given a chance to purchase the home at a substantial discount: 50 percent of the list price. However, there are some requirements that you’ll need to meet to take advantage of this special offer:
- You must meet HUD’s requirements for a teacher, emergency medical technician, firefighter, or law enforcement officer.
- You must agree to use the property as your sole residence for at least three years.
- You must sign a second mortgage note for the amount of the discount. No payments or interest will be needed on this second loan unless you fail to follow through on the three-year residency commitment.
Teacher Next Door
What if you aren’t located near a revitalization area or are uncomfortable with the idea of committing to spending three years in the same spot? The Teacher Next Door program can help you explore your options. This privately run program matches teachers and other public service professionals like fire fighters, medical professionals, police officers, and government workers with loans, grants, and discount programs that suit their unique qualifications and needs. Down payment assistance is also available. With Teacher Next Door, you can purchase any home that fits your budget and your chosen loan program’s requirements, so you don’t have to sacrifice selection or flexibility to reap savings.
Homes for Heroes
The Homes for Heroes program doesn’t handpick homes or extend mortgages. Instead, it helps those who qualify save money while buying or selling a home. Available to teachers, health care professionals, active service members and veterans, and current and former first responders, this program saves home buyers an average of $2,400. How does it work? Participants receive discounts on common services and expenses like lender or real estate agent fees, home inspections, and title services.
While the programs listed above offer nationwide benefits, considering local options can also be useful. According to The Mortgage Reports, many states and municipalities that are struggling to find and retain qualified teachers offer some form of housing assistance. In addition, lenders, unions, and other organizations often sponsor special housing programs for teachers at the local level as a way of thanking them for the invaluable service that they provide their communities.
Are you a teacher planning to spend your summer break searching for a new home in the Wichita area? Turn to PrimeLending of Wichita, Kansas. This summer, we’re saying thank you to the education professionals who put so much time, talent, and energy into making their classrooms fun, nurturing places by offering teacher home loans with no lender fees. Are you ready to learn more about our services and the many loan programs we offer? Contact us today to schedule an appointment with one of our friendly, knowledgeable loan professionals.