RESEARCH & LEARN

Mortgage Loans for Teachers: Are They Different?


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TERMINOLOGY

Mortgage loans for teachers are the same mortgage loans available for police officers, firefighters, municipal workers, office workers and people in any other profession. There is no special mortgage loan designed specifically for teachers. A mortgage loan is used to finance the purchase of a home and has its own terms, conditions, rates and payment schedule. A teacher who applies for a home mortgage loan should be careful not to be lured by a promise for a special “mortgage loan for teachers” when such a loan product does not exist.

Incentives for Teachers

Teachers may be provided extra incentives for a mortgage loan, like police officers who live in certain neighborhoods or areas of a city. In this case, being a teacher helps lower loan costs or negotiate a better loan rate. HUD has a special program called the "Teacher Next  Door" program. The basics of the program are that the teacher should purchase a home in the community where they teach. The hope is that the teacher will solidify the neighborhood and improve the community. Teachers are given lower down payments and can purchase homes in targeted areas at very low costs. If you are a teacher looking to buy a home, consider talking to your lender about the "Teacher Next Door" program and see if you can qualify.