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Top Five List of the Best Home Loans for Teachers

Home Loans


JustChoice Lending

June 20, 2023

Are you a budget-conscious teacher searching for a custom-tailored home loan that meets your unique needs? Well, you're in luck! Here's a top five list of the best home loans for teachers.

Good Neighbor Next Door

Backed by the U.S. Department of Housing and Urban Development (HUD), the Good Neighbor Next Door program presents a unique opportunity for eligible teachers—the opportunity to purchase homes in designated “revitalization areas” at 50 percent off the sale price. But what qualifies as a “revitalization” area? Exact qualifications vary, but these areas are typically targeted due to economic challenges, distressed housing markets, or other community development needs.

To qualify for this program, applicants must:

1. Be employed full-time at a public, private, or charter school recognized by the state

2. Not have owned a home at any time in the last three years

3. Commit to living in the home for at least three years

Teacher Next Door

The Teacher Next Door (TND) program offers public servants, including teachers, grants of up to $8,000 and down payment assistance of up to $10,681. If that wasn't enough, the program also offers low-interest rates, reduced title fees, free home appraisals, free credit counseling, and more.

To qualify for this program, applicants must:

1. Be employed as a full-time pre-K through 12th-grade teacher

2. Work with an affiliated TND agent

3. Secure financing from a TND lender

4. Purchase a property located in a qualifying area

FHA Loans

While FHA loans are not specifically designed for teachers, they can be appealing for several reasons. FHA loans generally require a lower down payment (3 percent) than conventional loans (10 percent). This can be beneficial to teachers who may have limited funds for a large down payment.

FHA loans also offer competitive interest rates, flexible credit requirements, and rehab and renovation options. For example, the 203(k) program allows borrowers to finance the purchase price and the cost of renovations or repairs into a single loan.

United Federation of Teachers Programs

The United Federation of Teachers (UFT) maintains relationships with several mortgage lenders. If you are a UFT member, you may qualify for reduced interest rates, lower mortgage insurance costs, expedited underwriting and processing, and down payment assistance.

Homes for Heroes

Homes for Heroes® is a nationwide network of real estate and mortgage specialists dedicated to rewarding teachers, firefighters, law enforcement, military, and healthcare professionals. To date, this program has assisted nearly 55,000 home buyers in saving a staggering $100 million by providing them with opportunities to reduce various expenses associated with homeownership. These savings extend to closing costs, agent commissions, and other related fees. One particularly standout benefit is the program’s offer of a 0.7 percent savings on the purchase price of a home. Although that number may seem modest, this translates to $700 for every $100,000 spent.

Unlock the Ideal Loan for Teachers with JustChoice Lending (JCL)

As a socially responsible lender, we understand the unique needs of educators. We offer competitive rates, personalized service and have the expertise to assist you whether you have high- or low-income status. Request rates to get started on your loan today!

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