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Teacher Home Loan Options

This page updated and accurate as of April 23, 2025

Teacher Home Loan OptionTeachers have some great government mortgage options available to them in 2025.  Many teachers need a home mortgage solution that requires little to NO down payment. Let’s take a look at some of the best Teacher home loan options available in 2025.

USDA Rural Housing Mortgage – 100% Financing, Government backed.

You see “USDA” and the first thing you think is farms and ranches – or maybe even beef inspections?  Many Teachers are still unaware that USDA & Rural Development offer regular home mortgages.  The USDA 502 Guaranteed loan is a program designed to help rural communities expand by making homes in these areas affordable through easy credit requirements. USDA is currently the only 100 percent no money down mortgage available in the U.S. today (unless you have military VA benefits)  The program is perfect for public service workers like school Teachers, Firefighters, EMT, Police who may have limited money saved for a down payment.

Here are some of the many benefits that this program offers to teachers:

  • USDA mortgages require no money down up to 101 percent financing ( One-time USDA guarantee Fee of 1.0% included in loan amount)
  • No time consuming requirements to get approved. No special class or education needed. Get pre-approved and out searching for a home all in the same day.
  • USDA are secure with low 30-year fix interest rates.
  • The home you decide to purchase doesn’t need to meet any “special requirements” as the home can be a short-sale, foreclosure, bank owned, by owner,  or a regular sale. The home should only be located in defined USDA approved area (according to the map here) and be in good move in condition.
  • In comparison to FHA, USDA has much a lower monthly mortgage insurance – PMI cost.
  • USDA closing cost can be rolled into the loan in some cases or paid by the seller of the home you choose.
  • There are no maximum home purchase loan limits with USDA loans. Buyers get approved based on their total income/debt.
  • No assets as collateral are required to qualify for USDA loan
  • You can qualify for a USDA loan with a minimum credit score of 620
  • USDA does have household income limits, depending on the county and size of the household. Contact us to discuss in detail – applicants can submit the Quick Contact Form on this page.

FHA Mortgage – 96.5% Financing.

The standard Government backed FHA home loan is very similar to the USDA program above. However, this program does require a small 3.5% down payment. The down payment can be a gift, and come from a family member.

  • The big difference between the FHA and USDA mortgage is the property you purchase with FHA is NOT required to be in a designated approved area.
  • FHA also does not have income caps for the household.
  • Like USDA above, the FHA loan permits the home seller to pay the buyers closing costs.
  • FHA also permits co-signers  – even if they are not going to occupy the home.
  • Secure fixed interest rates and no prepayment penalty. Move or pay off your loan anytime.
  • FHA loans can close in as little as three weeks.

Good Neighbor Next Door, FHA Niche Program

The Good Neighbor Next Door Loan is the HUD-FHA (Federal Housing Administration) niche program. It is a program that is focused on revitalizing communities, with the help of public service professionals, like teachers, and in return, helping them become homeowners.

Here’s how this program works:

  • Eligible single-family homes located in targeted communities (revitalization areas) are listed for sale through this program. These properties are available for purchase for 7 days.
  • To participate, all you need to do is submit your interest for a specific home. If more than two people submit an offer for the same home; the selection is made by random lottery.
  • In addition to this, to qualify you must meet all the requirements such as:
  • You can apply for the Good Neighbor Next Door program if you are employed as a full-time teacher by a state accredited public or private school that offers direct services to students from pre-kindergarten to 12th grade
  • The school where you are employed at; must serve students from the area where your new home that you’re planning to purchase, is located.
  • HUD offers big discounts from the listed price of the home (often times 50%) however, the teacher (the borrower) must commit to live in the property for 3 years after purchase and contribute to the community’s revitalization

FHA HUD $100 Dollar Down Program

This program offers $100 down payment on select HUD owned homes.  Buyers can learn more about the HUD 100 dollar down loan here.

So, if you are a teacher with limited finances, don’t let this stop you from realizing your dream of home-ownership. Interest rates are still attractive and buyers can often own a home for less than their current rent payments. The best part is this can be done with little to no money out of pocket.

USDA Mortgage Hub serves Teachers across the nation. Teachers that have questions or what to learn more about getting pre-approved can submit the Quick Contact Form on this page.

 

Buying versus Renting Home in 2025

This page updated and accurate as of April 23, 2025

Buying versus rentingBuying a home versus renting is a big decision that takes careful consideration. While there are several biased sources that can make arguments for or against owning a home, we’ve found that most home buyers base their ultimate decision on emotion.  Or course there are some benefits to owning a home.  Tax advantages to name one, as well as the potential to earn equity or pay a mortgage note off after several years. Buying versus renting home is a big decision, let’s discuss some of the pros and cons of each.

Benefits Of Renting:

Lower Up Front Cost:

Unless you’re able to qualify for a mortgage loan with zero down and have your closing costs paid for by the seller, a typical investment to purchase a home is around 3.5% – 7% of the purchase price for down payment and closing costs on an FHA home loan  The amount goes up to an average of 10% – 20% for a home secured by a traditional conventional mortgage.

Some mortgage programs today like USDA Rural Housing still allow home buyers to move into a home with no down payment and very little money out of pocket. However, the USDA loan has certain eligibility criteria that must be met.  Compared to the cost of about 1-3 month’s rent payments, it’s obvious that renting a home makes financial sense in the short-term.

Low Qualifying Standards:

While the Government loans like FHA, VA and USDA have more flexible credit qualifying guidelines than most traditional home loans, there is certainly a lot less paperwork and personally invasive probing required by most landlords and property management companies.  Generally proof of job & income, credit history and a deposit is all that is needed to rent a home. You can find a rental home or apartment and move in same day in most cases.

Freedom To Move Around:

It’s easy to find a home through a reputable property management company, move in that weekend and then leave a year later when the rental contract expires.  Not being tied down by a long-term mortgage liability is ideal for people new to a community, in a career that keeps them on the go or for parents with children that prefer a certain school district. Plus, if you’re planning on moving in the next 3-5 years, then it may become cost-prohibitive due to the amount of equity you’ll have to gain in the short-run just to cover the cost of paying an agent, buyer closing costs, transfer taxes so that you can at least break even at closing.

Less Maintenance and Cost:

If something breaks like a water heater, AC unit or appliance –  simply call to the property manager and they will generally solve the issue in a few days.  Plus, renters don’t have to carry expensive homeowners insurance, pay property taxes or worry about interest rates adjusting.

Home Ownership Benefits:

Freedom To Change Things:

Don’t like the color of the walls? Change it they way you like!   And depending on whether or not there is an home owners association, you could probably do the same thing on the home’s exterior.  Landscaping, flooring, built-in shelving… it’s your property to renovate and make your own.

No Restrictions For Pets:

Well, according to the rules and regulations of your county or neighborhood HOA, you can pretty much have as many domestic and exotic pets without having permission or paying extra deposits. It may seem like a funny benefit to mention first, but the millions of dog and cat lovers would definitely rank this towards the top of their list.

Security:

The only way you would be forced to move is if the bank forecloses on your property due to a default on the owners mortgage.

By owning your own home, you don’t have to worry about a landlord’s financial ability to make mortgage payments on time. Plus, you can stay in your own property as long as you wish.

Tax Deductions –

The US government has created certain tax incentives making it possible for many homeowners to exceed the standard yearly deduction.

The following three components of your home mortgage may be tax deductible:  Interest on your home mortgage – Property Taxes –  Origination / Discount Points paid to mortgage company.

Stability:

Remaining in one neighborhood for several years lets you and your family establish lasting friendships, as well as offers your children the benefit of educational continuity.

Appreciation of Property:

Historically, even with other periods of declining value, home prices have exceeded consumer inflation. Over the last 40 years, home prices increased on average 6.5%, according to the National Association of Realtors. Most experts agree, over the long run a home is good investment.

Increased Net Worth:

Few things have a greater impact on net worth than owning a home. In a comparison of renters versus homeowners, the Federal Reserve Board of Consumer Finance found that the average net worth of renters was just $4,000 compared to homeowners at $185,000.

While the available tax advantages and potential for earned equity are generally highlighted by most industry professionals as the top reasons to own real estate, it’s important to remember that markets go through cycles. However, owning real estate that appreciates more than the rate of inflation may help contribute towards your overall investment portfolio, provided your maintenance and mortgage costs are kept low.

Talk to us today about the latest first time buyer programs designed for renters. Questions? Please call Ph: 800-743-7556 or submit the Quick Contact form on this page.

 

Atlanta FHA Program Details

This page updated and accurate as of April 23, 2025

Atlanta FHA Program DetailsFHA loans are by far one of the most popular mortgage loans available in Georgia today. The Federal Housing Administration (FHA) loan mortgage is great for Atlanta area home buyers that want to purchase a home with little money down.   The program offers GA residents the option of purchasing a home with only a 3.5 percent down payment. Here are the documentation and credit requirements needed to be approved for an FHA home loan. We will also look at some of the program benefits. 

FHA Documentation Requirements:

Most of the general information needed to start will just be basic things you already know. However, in order to work up a complete loan approval, lenders will need the following:

  • The residence address where you have been living for the past two years
  • Social Security numbers for all borrowers on the application
  • Name and location of your employer(s) for the past two years, gross monthly salary.  2 years of consistent income. While you do not need to be at the same job for 2 years, we must be able to verify a 24-month job history. Gaps in employment can be explained, however, those need to be kept at a minimum. The current income statement and personal tax returns from the past two years must be presented to the lender at the time of asking. In addition to that, individuals who are self-employed will be required to present their balance sheet.
  • Information pertaining to the checking savings accounts and any other asset accounts.

FHA Credit Requirements:

FHA home loans provide the home buyer a chance to buy their first home with a low down payment. However, your ability to qualify for FHA-approved loans significantly depends on your FICO credit score. In recent years the FHA has made changes to its policies that affect the ability of an individual to buy a home. Currently, applicants must have a credit score of at least 620 in order to qualify for the max 96.5% financing. Some borrowers with lower credit scores can qualify with a larger down payment.

FHA Requirements Recap:

  • Steady employment for at least two years
  • A valid social security number
  • U.S. residency
  • Two years out of bankruptcy and four years out of foreclosure with good credit
  • A 3.5 percent down payment – can be in the form of a gift
  • 100% FHA mortgages with down payment assistance now available to eligible first-time buyers
  • A 620 minimum credit score
  • A monthly payment must not exceed 35 percent of gross monthly income
  • Monthly debt must not exceed 45 percent of gross monthly income

Atlanta FHA Mortgage Highlights:

  • Generally easier to qualify than conventional loans
  • Lower down payment requirements, 3.5% compared to 5% for conventional loans
  • The home seller is permitted to pay buyers’ closing costs
  • Safe 30-year fix payment terms
  • Lower credit scores permitted
  • Generous loan amount limits, FHA Loan limits specific to the county
  • FHA streamline refinance options available for all borrowers with an FHA loan

Home buyers in more rural locations in GA should also check into the USDA Mortgage here. The USDA program offers up to 100% financing in many locations just outside of the big cities. Please call us above, or just submit the Quick Form on this page for assistance.

Serving home buyers in all across the U.S. including metro Atlanta – Fulton, DeKalb, Gwinnett, Cobb, Clayton, Coweta, Douglas, Fayette, and Henry County.

2025 FHA Home Loan Benefits

This page updated and accurate as of April 23, 2025

FHA loan benefits 2025The FHA loan program has remained a popular mortgage financing source for many home buyers across the nation. Many home buyers need home loan options that offer min down payment like the FHA program.  In addition to the low 3.5% down payment requirement, FHA recently announced the monthly mortgage insurance is going down, making the home loan even more affordable for new buyers and current FHA mortgage holders.

In addition to a low 3.5% down payment, easy credit qualifying requirements, and backing by the federal government – FHA mortgages are an attractive option to many borrowers in the U.S.  Donald Myers, FHA loan specialist,  says that FHA loans will always play a big role in the housing market whether their costs rise or fall.   Most buyers  (especially first-time buyers)  cannot qualify for bank conventional loans that require large 10% or 20% down payments.

Below we will look at all the 2025 FHA Home Loan Benefits:

Relax credit score and down payment requirements:

The FHA requirements for credit scores and down payments are far lower than for conventional loans. Borrowers can technically qualify for an FHA loan with credit scores of at least 580 credit score and a down payment of just 3.5 percent – according to FHA. While an FHA-backed mortgage with a credit FICO of 580 is “available” to borrowers, many lenders and banks will add their own in-house “overlays”  on top of these minimum credit requirements.

Loans with the lowest credit scores tend to default at a much higher rate, and mortgage companies are afraid that if they issue too many loans that later fail, HUD will no longer allow them to write FHA-backed mortgages. Therefore, many borrowers will find they need to have credit scores of at least 620 to qualify for the max 96.5% financing.

 FHA mortgage interest rates:

FHA loan rates are typically the lowest 30 / 15 year fixed rates available and lower than conforming loans. FHA Borrowers with credit scores of 680 will often qualify for the same interest rate as conventional borrowers with a score of 720 +. In addition, they will not be required to put as much money down.

FHA mortgage insurance premiums:

The biggest downside of FHA loans has long been the costs associated with the upfront and annual mortgage insurance premiums. However, since the interest rates on FHA loans are generally lower when compared to conventional, it oftentimes offsets the additional costs.

The upfront mortgage insurance premium (MIP) is 1.75 percent of the loan amount. That is $3,500 on a $200,000 mortgage. That cost is added to the principal balance of your loan. So your loan amount is actually $203,500.

Just to clear up any confusion, the annual mortgage insurance is actually the monthly insurance (PMI) that is added to your monthly payment.  This is the monthly PMI rate, not the one-time funding fee of 1.75%.   The new mortgage insurance reduction is a huge saving. On a $200,000 loan, the annual premium of 1.35 percent would cost borrowers $2,700. But with a premium of 0.85 percent, borrowers will only pay $1,700 for the same loan amount.

The lower annual rate does not apply to those applicants who are taking out 15-year fixed mortgage terms, these will remain the same.  Borrowers can read all about the latest FHA mortgage insurance calculator 2025 here.  Please also see the chart below – this compares the new and old FHA monthly mortgage insurance rates, the monthly saving is pretty good!

 

FHA PMI rates 2025

FHA closing costs:

FHA still permits home sellers to pay up to 6% of the loan amount to cover buyers’ closing costs. In conventional loans, sellers can only pay up to 3% in most cases. So this allows the FHA home buyer to put less money into the transaction. In some cases, a borrower can just pay the down payment, and have the seller pay all closing costs. Most first-time buyers can come up with enough money for a down payment, but then they have nothing else.  So allowing the home seller to pay the tab on closing costs is a big help for many.

Secure backing by the U.S. government:

FHA loans are backed by the US government  – Federal Housing Administration. The program offers safe secure fixed-rate terms with no pre-payment ( early payoff) penalties.

*Note, Florida home buyers have a special opportunity with the Florida Hometown Heroes Program. This state-sponsored down payment assistance program offers 5% (up to $35,000) of the home purchase price to assist with the buyer’s down payment, closing costs, and loan principle reduction.

Please call or submit the Quick Contact Form to learn more about any of the programs available.

FHA Loan Offers Great Alternative

This page updated and accurate as of April 23, 2025

FHA home loansNot everyone lives in a USDA Rural eligible location. For home buyers that reside in more populated cities, FHA can be a great alternative.  The FHA loan can be especially good for first-time home buyers that need a mortgage that doesn’t require a large down payment. Although the FHA is not 100% financing like the USDA mortgage, it does offer some flexibility.  Let’s discuss some FHA loan benefits below.

  • FHA loans only require a 3.5% down payment.  The down payment money can come from a family member as a gift. In addition, borrowers can use approved down payment assistance funds, grants, etc.
  • FHA has closing costs similar to other loan programs. However, the FHA guidelines do permit the seller of the home to pay the home buyers closing costs – up to 6%.  This is often more than enough to cover typical closing costs and escrow requirements.
  • FHA upfront mortgage insurance premium of 1.75% can be added to borrowers’ loan.
  • FHA loans have flexible terms – 15, 30 year fixed. Adjustable rates as well.
  • FHA loans do not have any early payoff penalties – Sell your home or pay off your loan whenever you like without penalty.
  • FHA upfront mortgage insurance premium of 1.75% can be added to the borrower’s loan.
  • FHA does not have any income limits or property location limits like USDA.
  • Borrowers can purchase any single-family home, townhome or FHA-approved condo that meets basic HUD requirements. The seller(s) of the home is not important.

In addition to the basic FHA loan, FHA also offers a HUD $100 down mortgage for specific HUD-owned homes. This is a great program in the fact that borrowers can purchase with very little money out of pocket. The only stipulation is the home must be HUD owned. Borrowers can check the HUD home list here.

Home buyer that have questions are encouraged to contact us at ph: 800-743-7556

 

Charlotte FHA Loans – How Much Down Payment?

This page updated and accurate as of April 23, 2025

There are many conventional mortgages today that do not require any down payment of around 10%, which is why low down payment programs like FHA remain a popular choice for Charlotte first-time buyers. The FHA program started back in 1934 and since they have helped make it possible for a wide variety of buyers to get a mortgage with as little as a 3.5% down payment.

There are specifics, however, that have to be adhered to by the borrower when obtaining an FHA mortgage. For instance, prospective borrowers with a credit score of 580 would always need a down payment is 3.5%.  Borrowers possessing a credit score of at least 550, can sometimes be approved with a greater down payment of 5 or 10%.  As you can see, the lower the credit scores, the bigger the down payment that the borrower has to shell out.

This makes sense in that the FHA program, as much as it was primarily designed to cater to a very wide range of living standards. This would ensure the borrower has a decent amount of equity investment in the transaction.

On the flip side, for people who have a credit score of around 720 have much more flexibility. They could obtain an FHA loan with the most favorable terms and interest rates.

It’s important to note, the FHA loan, like many nearly government-backed mortgages (USDA, VA) has a mandatory mortgage insurance premium or otherwise known as “MIP”  The FHA upfront mortgage insurance will be around 1.75% of your total loan and is charge is often rolled into to the buyers overall loan balance. This is assuming you are borrowing for a maximum of four family owner-occupied homes. This insurance was actually not designed to lower your risks in the transaction. Instead, it is implemented for the lender’s protection.

FHA does have many advantages for North Carolina home buyers:

  • Secure fix rate terms
  • Some of the lowest interest rates available today
  • Government backing
  • Closing costs can be paid by the home seller
  • Buyers down payment can be in the form of a “gift” from friends, family or other eligible sources
  • Lower credit score criteria when compared to conventional loans.
  • Recently increased FHA Loan Limits

Residents in more locations of NC should also read more about the 100% North Carolina USDA Loan

Questions about FHA loans? Please contact us at the number above, or just submit the Quick Contact Form on this page.

FHA Loan Prequalify Michigan Home Buyers

This page updated and accurate as of April 23, 2025

FHA still remains a popular mortgage program for Michigan home buyers.  Low 3.5% down payment, secure fix interest rates, and quick closings are just a few benefits the program offers.  You might be wondering exactly how you go about get prequalified for an FHA mortgage?

First, it’s important to understand exactly what a “prequalification” actually is in FHA mortgage terms.  An FHA prequalification means that under the information provided to your loan specialist, you generally meet the guidelines that are set for FHA loans.

At this stage, none of the information you provided is documented or verified.  You may or may not have made a formal FHA application, you just want to know whether or not you can obtain an FHA loan in Michigan and if so, approximately how much can you borrow.

To prequalify for an FHA loan, you will first speak with a loan advisor either on the phone, online or face to face.  The mortgage specialist will ask you a few general questions to get an idea about your current situation, your goals, your income and the amount of funds you will have when it comes time to close on your new Michigan home.

The loan officer will ask for your:

Household Gross Monthly Income

This is the amount of total household income from all borrowers that will be on the FHA loan.  If you will be the only person on the loan, then only your income will be used.  And remember, this is the monthly gross income, the income before any withholdings are deducted.

Employment

Along with how much you make each month, your FHA loan officer will want to know the nature of your job, what you do there and how long you’ve been at your current employer.  FHA loans ask for approximately two years of current, full-time employment unless you are a recent college grad. If you have part-time income in addition to your regular job, be prepared to provide two years’ worth of part-time income from that job as well.

Savings

Your FHA loan officer will also pre-qualify you based upon the amount of funds needed to close on an FHA loan plus allow for additional closing costs that may be associated with the new FHA loan.  This amount doesn’t necessarily mean how much money you have in your bank accounts today, but how much you will plan on having when it comes time to close on your new home.

To prequalify for an FHA loan here in Michigan, all it takes is a little time and answering a few questions.  Once you have determined that you’re ready to make the move and apply for an FHA loan, your loan officer will then begin the documentation process that will complete the FHA loan approval process.  This will include actual copies of your tax returns, W2’s, bank statements, etc.  To learn more, please call us above with questions, or just submit the Quick Call Form on this page.

Home buyers should also keep in mind many locations in MI are still eligible for the 100% USDA loan. Home buyers can compare USDA and FHA loans here.

Latest Texas FHA 203K Guide

This page updated and accurate as of April 23, 2025

FHA loans remain one of the most popular mortgage financing options in Texas. The FHA 203K version is basically the same as a regular FHA loan, with one key difference – this program allows for renovation costs to be included in the homebuyer loan. Let’s take a detailed look at latest Texas FHA 203K guide and everything home buyers will need to know.

FHA 203k, also known as the home repair or renovation loan, is one of the most diverse home improvement loans out there. Buyers can use this loan for needed repairs, upgrades, remodels and building of a new structure on a house you own or will own. The 203(k) for great simple upgrades like kitchen remodeling, bathroom or completely reconstruct a home that is in need of repair. You can borrow up to 96.5% of the post-renovation appraised value. This is great for first time home buyers in Dallas, Austin, San Antonio, etc.

The limited FHA203k is for renovations under $35,000.  Also available is the standard 203k for larger renovations over $35,000. Both programs require 3.5% down payment, and home buyers must meet all the basic FHA qualifying requirements in regards to credit and so forth.

Eligible Repairs:

The Streamline 203k program is most commonly used for simple cosmetic repairs not exceeding $35,000 and includes WDO repairs, roof, gutters, etc.  It may also be used for HVAC systems, electrical, plumbing, minor improvements to kitchens, bedrooms or bathrooms, flooring, painting as well as new energy efficient window upgrades and door weather stripping and insulation.  The 203k light rehab loan encourages funds for energy efficient additions, removing lead paint, and the addition of decks, patios, porches, septic and well system.  A borrower may also use the funds to purchase a washer or dryer, or new kitchen appliances.

Ineligible Repairs:

Items not eligible for the 203k Streamline light rehab loan are landscaping and yard work and major remodeling or rehabilitation to any dwelling.  It is also not for moving walls, additions or fixing major structural damage to the house.  The full 203K loan allows in-depth repairs over 35K.

FHA 203(k) Terms:

The loan terms are standard 30 or 15-year fix. With the 203k light rehab loan, no minimum loan balance is required; however, buyers must intend to occupy the property as their primary residence once the repairs are complete. This is not a loan for investors that want to fix/flip a property.  The property may not be vacant for more than 30 days and all work must be completed within six months.  You do not have to hire a HUD-approved contractor; however, a licensed professional must complete all eligible repairs.  All repairs must begin within 30 days after the closing.

Who Does the Work?

The 203k mortgage allows the buyer to select their licensed contractor and the lender will review the contractor’s credentials and experience.  The lender will get a firm estimate from the chosen contractor and generally add 10% to the repair costs. Buyers can even arrange to complete some of the work themselves as long as they document showing that you are qualified to complete the said repairs.

FHA 203K Q&A:

What is the maximum FHA 203k loan amount?

FHA 203k loans are available in amounts from 275K-630K + depending on your state and county.  You can visit the HUD website and look up your county loan limit.

Is there a required down payment?

Yes, just like the standard FHA loan a minimum of 3.5% is required.

 What types of repairs are allowed with a Streamlined version 203(k)?

  • Patio or porch additions
  • HVAC repairs
  • Home improvements for accessibility for disabled
  • Finishing a basement
  • Installing a new roof.
  • Window replacement
  • Siding replacement
  • Exterior painting
  • Energy Savings upgrades

What types of repairs are permitted with a FULL 203(k)?

  • Structural alterations and additions to the house. New home additions must be attached to the existing structure.
  • Kitchen or bath remodel
  • Minor foundation issues
  • Repairs that have a total cost of $35k or more
  • Modernization and improvements to the home’s function
  • Elimination of health and safety hazards.

Want to learn more? Buyers nationwide can contact us 7 days a week by calling the number above.