9 Teacher Homebuying Programs for 2024
Teacher homebuying programs are designed to make homeownership more affordable for educators. These programs offer a wide range of benefits, including purchase price discounts, reduced interest rates and down payment assistance. It’s not always clear which programs are available and who qualifies for them, however.
Learn more about the different home loans for teachers below, and what it takes to get one.
Quick glance: Teacher homebuying programs
| Program | What does it offer? | Who is it best for? |
|---|---|---|
| Good Neighbor Next Door | Home purchase price discount for homes in designated revitalization areas. | Teachers who want to buy a home in a revitalization area and plan to live in their home for at least three years. |
| Teacher Next Door | Down payment assistance. | Teachers who want to buy a home in their preferred location. |
| Homes for Heroes | Discounted homebuying services. | Teachers who are willing to work with real estate professionals within the Homes for Heroes network. |
| Teacher’s union programs | Varies, but may include discounts on mortgage application fees. | Union members. |
| Teacher-focused credit unions | Varies, but may include closing cost assistance. | Teachers who are credit union members or are willing to join. |
| Teacher first-time homebuyer assistance programs | Assistance varies by program, but may include low-interest mortgage loans. | Teachers who haven’t owned a home before. |
| Conventional mortgages | Lower down payment options for people with good credit. | Homebuyers who want more flexibility with the types of properties they can finance. |
| Government-backed mortgages | Lower minimum credit score and down payment requirements. | Homebuyers with lower credit scores and limited cash for a down payment. |
| State and local homebuying assistance programs | Varies, but may include down payment assistance grants and loans. | Teachers who have limited funds for a down payment and/or closing costs. |
1. Good Neighbor Next Door
Teachers from pre-kindergarten through 12th grade may qualify for homebuying assistance through Good Neighbor Next Door — an initiative from the U.S. Department of Housing and Urban Development (HUD). This program provides a generous 50% discount on homes in designated revitalization areas.
To participate in the program, you must live in the property as your primary residence for at least 36 months, and the 50% discount is prorated over that timeframe. For this reason, the program may not be the best option for people who may need to relocate within the first few years.
Good Neighbor Next Door homes are available for purchase for seven days, and the program works on a bidding system. If more than one person submits an offer on a home, the selection is made by random lottery. Bids for Good Neighbor Next Door properties must be submitted by a HUD-registered real estate broker.
Who qualifies? Teachers (pre-K through 12th grade), law enforcement officers, firefighters and emergency medical technicians.
Who is it best for? Teachers who want to buy a home in a revitalization area and plan to live in their home for at least three years.
2. Teacher Next Door
Teacher Next Door is a national homebuying program that offers various benefits to eligible educators, including grants and down payment assistance. Unlike the Good Neighbor Next Door program, you’re not limited to buying a home in certain areas. Here are a few of the program benefits:
- Homebuying grants up to $8,000
- Down payment assistance up to $10,681
- No application fees
- No upfront fees
- Free home appraisal (up to $545 credit at closing)
- Dedicated buyer’s agent
Who qualifies? Teachers (pre-K through 12th grade), public and private school teachers, college and university professors.
Who is it best for? Teachers who want to buy a home in their preferred location.
Mortgages and credit score requirements
Regardless of the homebuying program you choose, your credit score will likely impact your mortgage eligibility. Minimum credit score requirements vary by loan type and lender but usually range from 500 to 620 and higher. If your credit profile needs some work, some of the best ways to boost your score include paying off debt and limiting new credit applications.
Don’t know your credit score? Get your free score on LendingTree Spring today.
3. Homes for Heroes
Home for Heroes programs were created to help make homeownership more accessible to everyday heroes, including teachers and military members. Homebuyers save $3,000 on average when they buy or sell a home using the program, according to Home for Heroes.
To determine your eligibility, the first step is to register on the Home for Heroes website. After you sign up, a representative will reach out to you within 24 hours to learn more about where you are in the homebuying process and connect you with their network of real estate professionals.
Who qualifies? Eligible individuals include but aren’t limited to: Teachers, education administrative staff, active-duty military members, military reservists, veterans, firefighters, law enforcement, emergency medical technicians and health care professionals.
Who is it best for? Teachers who are willing to work with professionals within the Home for Heroes network to complete their home purchase (this is not a requirement, but it may maximize your savings).
4. Teacher’s union programs
Your teacher’s union is another place to turn to for homebuying assistance. For example, if you’re a member of the American Federation of Teachers, you may be eligible for mortgage and refinancing solutions through Amalgamated Bank. Benefits of this program include $700 in discounts on origination fees and strike protection — up to three late payment fees are waived if your local union is on strike.
The National Education Association offers a mortgage program for its members through a partnership with First National Bank of Omaha. Under this program, homebuyers save an estimated $1,280 at closing. Additional benefits include no origination, processing or application fees.
Who qualifies? Teachers who are part of unions that offer homebuying assistance programs.
Who is it best for? Union members. However, it’s always a good idea to shop around and not assume your union will have the best deal.
Mortgages and debt-to-income ratio requirements
As part of the mortgage underwriting process, lenders will look at your monthly debt payments compared to your income to calculate your debt-to-income (DTI) ratio. Generally speaking, it’s a good idea to try to keep your DTI ratio below 43%. Paying off some of your debts before buying a home can improve your DTI, which may improve your eligibility odds.
5. Teacher-focused credit unions
You may have a local credit union that focuses on teachers and provides special perks for its members.
One example is Educational Systems Federal Credit Union — a Maryland-based credit union that offers fixed-rate and adjustable-rate mortgages, as well as refinance loans. Members may be eligible for up to a $2,500 credit toward their mortgage closing costs. There are several ways to become a member, such as being employed as an educator for certain Maryland public schools and colleges.
Who qualifies? Membership requirements vary by credit union.
Who is it best for? Teachers who are credit union members or are willing to join.
Ready to compare refinance offers? Get Your Best Rates from Top Lenders Today6. Teacher first-time homebuyer assistance programs
First-time homebuyer programs are a popular way to make homeownership accessible for more people, including teachers. These programs are run by various entities, including state and local governments and nonprofits. Each program has its own benefits and eligibility requirements. Here are some examples of first-time homebuyer programs:
- NC Home Advantage Mortgage. This is one of many first-time homebuyer programs in North Carolina. It provides down payment assistance for up to 3% of the loan amount. If you stay in your home for 15 years, you won’t need to repay the assistance. You must make less than $140,000 annually to qualify for this program.
- Home Sweet Texas Home Loan Program. This Texas first-time homebuyer program provides low-interest mortgage loans and down payment assistance to low- and moderate-income families. You generally must have at least a 620 credit score and complete a homebuyer education course to qualify.
Who qualifies? First-time homebuyers, but the requirements vary by program.
Who is it best for? First-time buyers who meet the specific program guidelines. For example, if your program has an occupancy requirement, it might not be suitable if you plan to move or rent out your home.
7. Conventional mortgages
Conventional loans are another option to consider. These mortgages aren’t secured by any government entity and typically have stricter minimum requirements than government-backed loans. You typically need at least a 620 credit score to qualify for a conventional loan.
Who qualifies? Any homebuyer that meets their lender’s eligibility requirements.
Who are they best for? Homebuyers who want more flexibility with the types of properties they can finance.
8. Government-backed mortgages
As a teacher, you could qualify for a standard government-backed mortgage. These types of loans are popular with first-time homebuyers and people with bad credit, because they typically have lower credit score and down payment requirements than conventional loans. Types of government-backed loans include:
- FHA loans are insured by the Federal Housing Administration. To qualify, you’ll need at least a 500 credit score and a 10% down payment. If your credit score is 580 or higher, you can make a down payment as low as 3.5%.
- VA loans are guaranteed by the U.S. Department of Veterans Affairs and aim to make homeownership more accessible to military service members and veterans. VA loans don’t require a down payment or minimum credit score. However, your loan costs will include a VA funding fee and VA home appraisal.
- USDA loans are backed by the U.S. Department of Agriculture and designed to help low- and moderate-income borrowers buy homes in rural areas. These loans don’t require a down payment or specific credit score to qualify.
Who qualifies? Homebuyers that meet their chosen program’s eligibility requirements.
Who is it best for? Homebuyers with lower credit scores and limited cash for a down payment.
9. State and local homebuying assistance programs
Homebuying assistance programs are often run on state and local levels.
To find programs in your area, ask your real estate agent or search online for “homebuying assistance near me.” Here are examples of these types of programs:
- Texas State Affordable Housing Corporation (TSAHC): TSAHC is a Texas-based nonprofit that helps both first-time and repeat homebuyers achieve their goal of homeownership. Benefits include down payment assistance either in the form of a grant or a deferred, forgivable loan that you must repay if you sell or refinance within three years.
- Connecticut Teachers Mortgage Assistance Program: The state of Connecticut offers a mortgage assistance program for teachers. Under the program, teachers can receive below-market-rate mortgage loans and down payment assistance. Connecticut teachers who work in certain priority school districts or teach in one of the state-identified subject matter shortage areas may qualify for the program.
Who qualifies? Eligibility requirements vary by program, but you’ll generally need to meet credit score and income requirements to qualify.
Who are they best for? Teachers who have limited down payment funds.