According to the Rural School and Community Trust, there are several first time homebuyer grants for teachers offered by entities like private mortgage lenders, the federal government, state governments, and certain local school districts. These programs are in place to increase the rate of home ownership among teachers, a service profession that often has low salaries.
Some private mortgage lenders offer first time homebuyer grants to teachers with the understanding that this profession is often lower compensated and in need of homebuyer assistance. These programs can be found at national and regional lenders like Wells Fargo, PNC Bank, and Fifth Third Bank. It is important for teachers to compare offers, fully understand the details of each program and recognise that the pricing and terms being offered are based on a lender's business goals.
The federal government offers a program designed specifically for service workers like teachers, police officers, firefighters and EMTs. Officially titled the "Good-Neighbor-Next-Door Program," it offers teachers who are prospective home buyers a discount of 50 per cent from the list price of select HUD homes, as long as the teacher can commit to owning and maintaining primary residence in the property for 36 months.
State and Local Programs
States and local school districts that have a shortage of qualified teachers, or issues in recruiting and retaining them, may offer homebuyer grants to teachers. One example is the Housing Assistance for Teachers program in Mississippi, which offers licensed teachers an interest-free grant provided they commit to employment for a stated period of time. While programs vary by state, they may also cover closing costs up to a stated amount, or allow home buyers to use funds for down payments or private mortgage insurance.
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- "State Housing Assistance Programs for Teachers: A Sampler"; "The Rural School and Community Trust"; November 2008
- "About Good Neighbor Next Door"; U.S. Dept of Housing and Urban Development;
- "Teacher Housing"; Chicago Public Schools
- "Housing Assistance for Teachers Program"; Mississippi Home Corporation