Teacher Home Loan Options

Teachers have some great government mortgage options available to them in 2016.  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 2016.

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 the right side. You can also call ph: 800-743-7556. Mobile phone users can find the Quick Contact form at the top of their 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 12^th 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 super low in 2016, 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 the right side. You can also call ph: 800-743-7556 or visit www.UsdaMortgageHub.com.  Mobile phone users can find the Quick Contact form at the top of their page.

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