What You Should Know About the Teacher Next Door First Time Home Buyer Program
Students and communities need great teachers, so it’s critical that they can access benefits such as affordable home loans for teachers as well as down payment assistance.
Being a teacher is one of the hardest jobs out there and those who choose this career path know the ups and downs of working in education. Some also know the frustrations of not being able to afford a home, especially in certain areas of the U.S. where housing costs continue to rise.
The Home Affordability Challenge for New Teachers
According to a study conducted by The National Council on Teacher Quality, monthly house payments can be a real roadblock in many school districts.
The study states that only in a small percentage of districts can a teacher with 5 years experience and a Master’s degree “comfortably afford the monthly costs associated with buying a median-priced home.”
Educator Mortgage Programs to the Rescue
Assistance is available from several organizations to help educators at all levels with the following home buying steps:
- Special loans and grants
- Home buyer education classes for teachers
- Discounted closing costs
- Discounted real estate agent fees
- Quick loan processing
The Teacher Next Door Program is a Smart Start
First time home ownership can be a special challenge for those entering the education field as home loans for teachers can sometimes be difficult to secure in the early stages of a teaching career.
Down payment and income requirements may be roadblocks for teachers having difficulty meeting debt-to-income ratios required by mortgage companies. A 20% down payment can also be out of reach for potential first time home buyers. Closing costs for loan and transaction fees can also be prohibitive.
Fortunately, there is a home buying assistance program geared toward educators that assists in all aspects of home ownership. The Teacher Next Door Program was created by the U.S. Department of Housing and Urban Development (HUD) to connect teachers buying their first home with various mortgage opportunities.
How the Teacher Next Door First Time Home Buyer Program Works
The Teacher Next Door Program for first time home buyers helps with down payment assistance, grants and other aspects of the home buying process. The goal is to facilitate the dream of home ownership for teachers who have not previously owned a home.
Eligibility requirements for the Teacher Next Door First Time Buyer Program include:
- You must be a teacher, school administrator or a non-instructional staff member
- You have not owned a home at any time during the past three years
For a full list of eligibility requirements, please visit teachernextdoor.us.
Important things to note about the Teacher Next Door First Time Buyer Program include:
- The program is available in all 50 U.S. states
- Low down payment options for potential first time home buyers
- Potential grants
- Down payment assistance
- Home loans with preferred interest rates for first time home buyers
- Free MLS access and home buyer representation
- Free appraisal at closing
- Discount title fees
Getting Started with the Teacher Next Door Program
Your goal of home ownership starts with the simple step of applying and getting pre-qualified. A representative from the Teacher Next Door Program will then contact you to guide you through the next steps including securing a mortgage and finding a great house.
You’ll have access to HUD-owned and bank foreclosure properties, short sales and any other homes in your area. You will not be limited to HUD homes and can purchase any home listed in the market.
Your Teacher Next Door Program representative will help you secure the best price for your selected home and will assist in the closing process including inspections, financing, appraisals, surveys and more to make sure that your experience is a positive one.
Communities across the country need the positive influence of great teachers and the Teacher Next Door First Time Buyer Program is an important step in making sure teachers can secure a home close to the school and students they serve.
Now that you’ve learned about the Teacher Next Door Program, search for available homes near you by visiting the Coldwell Banker website.
Sharon is the Digital Content Specialist for Coldwell Banker Real Estate, LLC. She lives in New Jersey and holds a BA from Syracuse University. She is passionate about giving back to the community and enjoys teaching STEM (Science, Technology, Engineering and Mathematics) at the local Boys & Girls Club. She loves pun-ny jokes and she can watch adorable videos of puppies and babies all day.