For many educators, homeownership can seem like an unattainable dream.

With the average U.S. teacher salary at $68,130 and the median home price at $424,900, bridging this financial gap presents a significant challenge, especially for first-time buyers. Fortunately, numerous specialized programs exist to help teachers achieve homeownership.

Understanding First-Time Homebuyer Status

Before exploring teacher-specific programs, it’s important to understand if you qualify as a first-time homebuyer. Generally, you’re eligible if you haven’t owned a home in the past three years. You might also qualify if you meet certain exceptions, such as purchasing in a designated target area, even if you’ve owned property previously.

General Financing Options for Teachers

Several mortgage programs can help teachers overcome financial barriers to homeownership:

FHA Loans

• Government-backed mortgages requiring lower down payments (as little as 3.5%)
• More flexible credit requirements
• Ideal for teachers with limited savings or those building credit

USDA Loans

• Zero down payment required
• Designed for low-to-moderate income buyers in rural and suburban areas
• Perfect for teachers working in qualifying locations
• Income limits vary by location

National Homebuyers Fund

• Offers non-repayable grants for down payments and closing costs
• Some cases include 0% interest loans forgiven after a set period

Teacher-Specific Homebuying Programs

Several programs are tailored specifically to help educators purchase homes:

Teacher Next Door

• Teacher Next Door funded by the U.S. Department of Housing and Urban Development (HUD)
• Available to broad education staff (teachers, administrators, lunchroom staff, coaches, bus drivers)
• Benefits include:
  • Up to $8,000 in non-repayable grants for closing costs
  • Down payment assistance up to $15,000 through a 3% loan
  • No interest accrual or monthly payments on assistance loans
  • Loan repayment only due when mortgage is paid off
  • Free application fees and access to home listings
  • Discounted title fees
  • No credit check required for mortgage application

Good Neighbor Next Door

• Good Neighbor Next Door HUD-backed program offering 50% discount on homes in revitalization areas
• Eligibility requirements:
  • Full-time teaching position at accredited public/private school
  • Must teach students in pre-K through 12th grade
  • Commitment to live in the property for at least three years
• Revitalization areas selected based on household income, homeownership rates, and foreclosure activity

Homes for Heroes

• Hometown for Heroes For-profit organization founded after 9/11
• Serves teachers, firefighters, EMS workers, law enforcement, and healthcare workers
• Provides approximately $7,000 in savings per $100,000 of home purchase price
• Additional discounts on agent fees, title services, and inspections

Teachers Union Resources

Your teachers union may offer valuable homebuying assistance:

National Education Association

• Member discounts and homebuying benefits through First National Bank of Omaha

United Federation of Teachers

• Program Partnerships with Amalgamated Bank and Wells Fargo
• Competitive rates and specialized programs for members

United Federation of Teachers (NYC)

• Mortgage discounts on lender, broker, attorney, and title fees for New York City public school teachers

It’s advisable to check with your specific union about available resources or partnerships. Even if direct homebuyer programs aren’t offered, your union might refer you to local services or trusted lenders who specialize in helping educators.

Want to get started? Talk to a professional today and explore your options.