Teacher Home Loan

Teacher home loans have been established to provide affordable housing options for teachers who live in areas around the nation where housing costs far exceed the average teacher's salary. For example: In California the average teacher's salary is $38k, and the statewide median housing is $277k. This home would otherwise be out of price range for an educator, but a teacher home loan may make home ownership possible. These funding programs offer low interest rates and some offer up to 100% financing. Some state and government offices provide down payment assistance, gifts, or forgivable interest. "Give instruction to a wise man, and he will be yet wiser: teach a just man, and he will increase in learning." (Proverbs 9:9)

An Internet search for this subject can yield over 26,000 results. HUD or The US Department of Housing and Urban Development offers the Teacher Next Door program (TND). This program is designed to get educators a teacher home loan for property in low and moderate income areas. The TND program is open to any person who is employed full time by a public or private school, or any federal, state, or local educational agency as a state certified educator for grades K-12. Educators wishing to obtain teacher home loans through the TND program must be in good standing with their employer.

These lending programs are not limited to first time homebuyers. However, the teacher home loan will not be approved if the educator is intending on owning multiple dwellings simultaneously. The TND program allows for funds to be granted for 50% of the list price of a qualifying house. This gives the individual 50% of automatic equity and enables them to have a monthly mortgage payment they can afford. Teacher home loans are given in a limited number, first come, first serve. If they are defaulted on, they require the vacant property to be sold at auction for the market value.

This agreement requires that the educator forfeit all rights and ties to the property in the event of a foreclosure, and any money that is made in addition to the loan balance payoff goes back into the fund for other educators wishing to utilize the TND program. All teacher home loans must be first approved through HUD and then the individual must qualify through their chosen participating lending institution. It is suggested that all teachers wishing to apply for a teacher home loan to research their options cautiously before applying for any loan programs.

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