May is National Teacher Appreciation Month, and there’s a lot to love when it comes to America’s educators.
On average, teachers work more than 52 hours per week, with 30 hours of instruction and 22 hours on take-home tasks like lesson preparation and paper grading, according to the National Education Association. What’s more, teachers touch the lives of millions of children across the country and make a lasting and meaningful impact.
In honor of our educators, we’ve highlighted a few programs that teachers who are looking to purchase a home might benefit from.
FHLB: Community Partner’s Program
Pre-kindergarten—12th grade educators at accredited public or private schools are eligible to participate in the program, whether or not they are first-time homebuyers.
The FHLB Community Partner’s Program—meant to support the families and individuals who make their living serving others—provides up to $7,500 in grant assistance for closing costs or down payment.
The grant, which does not need to be repaid, matches $4 for every $1 contributed by the borrower, with a minimum contribution of $1,000.
It’s also available for other community partners, such as medical professionals, current or retired law enforcement officers, first-responders, firefighters, and active or retired veterans.
All programs require household income at or below 80% HUD Median Income and approved homebuyer education. For more information or to figure out if you can qualify, contact your local loan officer, who can help guide your through the grant and homebuying process.
Good Neighbor Next Door
Full-time Pre-k through 12th-grade teachers at public or private schools are also eligible for HUD’s (Department of Housing and Urban Development) Good Neighbor Next Door program, which offers HUD owned homes at a 50% discount from the list price when they are located within revitalization areas.
The program was created to strengthen communities by encouraging employed community partners to move into the area, helping revitalization efforts.
For example, eligible buyers could purchase an eligible home listed at $210,000 for just $105,000 when purchasing the home through the Good Neighbor Next Door program.
Plus, if you qualify for any FHA-insured mortgage program, then your downpayment is only $100 and you may be able to finance your closing costs.
You don’t have to use an FHA Mortgage to purchase a home through the program, though. All loan programs are eligible.
How the Program Works
Eligible Single-Family homes located in revitalization areas are listed exclusively for sale through the Good Neighbor Next Door Sales program.
You must purchase the property as your primary residence and live in the home for at least 3 years. You also cannot own another property within 1 year of closing, and you can use any type of mortgage to purchase the home.
If the home is in distress or needs repairs, then you will have 30, 90 or 180 days to move into the home you purchase, depending on HUD's determination of the condition of the home and the level of repairs that may be required, if any. Eligible buyers can even use FHA 203(k) renovation mortgage program to purchase the home and get the money to make necessary repairs.
How to Participate in Good Neighbor Next Door
Check the listings for your state and follow the instructions to submit your interest in purchasing a specific home. Of course, it’s always a good idea to get pre-approved by your local loan officer before starting your home search. A pre-approval will help determine what you afford, so you can shop with confidence. It will also help you weed out any loan related issues early on.
The information contained herein (including but not limited to any description of TowneBank Mortgage, its affiliates and its lending programs and products, eligibility criteria, interest rates, fees and all other loan terms) is subject to change without notice. This is not a commitment to lend.
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