In any real estate market, being a good credit risk is the first step in the home buying process. Teachers make excellent mortgage risks because normally a teaching job is long term and recession proof. There are many ways for teachers to qualify for home loans.

The Good Neighbor Program Home Loan program by HUD
HUD offers a special rate for certain professions, like police, firefighters, and teachers. It can be a great deal. It is a way the government uses to try and revitalize certain neighborhoods.

The program is available for teachers from pre-kindergarten to 12th grade.

How does a 50% reduction off the home list price grab you? There is a catch. You must live in the home for at least three years. Contact your local HUD office to find out what areas near you qualify. The HUD office also has a list of homes for sale.

The way it workd is you find a home, qualify, then sign two mortgages. The first is for the first 50% price of the home. The second, is for the other 50% of the home price. But, you do not pay interest or payments on that second mortgage, provided you live for 36 months in the home. Then, the second mortgage is effectively gone after that period. If you fail to live for the 36 months, you will be on the hook for the rest.

You do have to qualify as being a real teacher in a real teaching job for up to grade 12. That is, work at a state certified school.

You can also get a very low interest loan to fix up the house. So beware, the homes are usually not in good shape or the best of neighborhoods.

You need little money up front. As little as $100 down payment, and a good faith deposit of $500 to $2000 to start the loan process.

Yes, if you live there for 3 years, you can now sell the home for profit! And you don't have to keep being a teacher for the full 3 years. Just be one to start.

Home Loan Assistance for Teachers
All across the United States are programs to help teachers buy homes. Each state has different programs and requirements. These home loan assistant programs normally include paying closing costs, down payment help, and even move-in costs.

Contact the state you live in for more information if you are a teacher and looking to buy a home. Many of these programs require some commitment to a teaching career in the state.

Click here for more information on the HUD Good Neighbor Mortgage Program

Teacher Home Loans from Banks and Lending Institutions
Contact your bank, credit union, or savings and loan to see if they have special assistance for home buying teachers. Many do.

Your School District may Assist in Home Loans
Some school districts in hard to hire areas, or areas lacking certain teachers, may provide housing and moving assistance. Some of these hard hit areas will help with down payments and closing costs on homes for teacher hires. Most come with a work or residence requirement.

Teachers are in a special situation. Many districts and states need teachers and are willing to help them out when buying a home. If you are a teacher, thinking about a home loan, there is no reason for you to not take advantage of all local, state, and federal assistance in getting a mortgage!