If youâre a teacher looking for affordable ways to purchase a new home in the state of Texas, there are several available programs, including Homes for Texas Heroes, Teacher Next Door and Good Neighbor Next Door. These state-backed initiatives provide financial home buyer assistance for qualified professional educators in the state, so long as applicants meet certain eligibility criteria.Â
Buying a home is an exciting milestone, but it can also be a daunting process, especially for teachers who may be on a limited budget Thankfully, there are special home loan programs in Texas created specifically to help teachers and other school employees afford homeownership. In this guide, we’ll break down exactly how these home loans for teachers work, who’s eligible, and how you can get started on the path to owning your own home
Overview of Home Loans for Texas Teachers
The Texas State Affordable Housing Corporation (TSAHC) offers special mortgage loans and down payment assistance grants to Texas teachers and school employees through their Homes for Texas Heroes program.
To be eligible, you must:
- Currently work full-time at a public K-12 school in Texas
- Be employed as a teacher, teacher’s aide, librarian, certified counselor, or school nurse
If you meet the eligibility requirements. you can qualify for the following assistance
- Fixed rate mortgage: 30-year fixed rate home loan through a participating TSAHC lender
- Down payment help: 3-5% of the total mortgage loan amount to put towards your down payment and closing costs
- Flexible options: Assistance provided as a grant or 3-year deferred forgivable loan
These TSAHC home loans are available to teachers statewide through their network of approved lenders. First-time homebuyers may also qualify for additional mortgage tax credits.
What Are the Benefits?
The TSAHC home loans offer Texas teachers several advantages:
Low interest rates: The 30-year fixed rate mortgage ensures your monthly payments will remain consistent and affordable.
Down payment funding: The 3-5% down payment assistance grant or loan means you can buy a home with less money out of pocket.
No repayment: If structured as a grant, the down payment funds do not need to be repaid. The deferred loan only has to be repaid if you sell or refinance within the first 3 years.
Nationwide access: You can work with any participating TSAHC lender statewide to take advantage of the program benefits.
Tax savings: First-time buyers are also eligible for a Mortgage Credit Certificate which can save you up to $2,000 annually on your federal taxes.
Ongoing support: TSAHC provides resources and assistance throughout the homebuying process to set teachers up for long-term success.
For Texas teachers who qualify, these special home loans can make homeownership much more feasible by lowering borrowing costs and providing substantial down payment assistance.
Who is Eligible for the TSAHC Teacher Home Loans?
To qualify for the TSAHC home loans and down payment help, borrowers must meet employment and income requirements:
Employment:
- Full-time teachers at a Texas public school (K-12)
- Teacher’s aides, librarians, certified counselors, and school nurses
Income:
- Minimum credit score of 620
- Meet income thresholds based on area median income; varies by county and household size
You do not need to be a first time homebuyer to qualify. The program is open to repeat and existing homeowners as well.
TSAHC has an online eligibility quiz you can take in just a few minutes to confirm if you qualify before proceeding with the application.
How Do Teachers Apply for Home Loans in Texas?
If you meet the eligibility criteria for employment and income, follow these steps to apply for the TSAHC teacher home loans:
1. Take the eligibility quiz
Go to TSAHC.org and take the 1-minute eligibility quiz to confirm you qualify and identify the best program options.
2. Contact a participating lender
TSAHC will provide a list of approved lenders in your area you can contact to begin the application process.
3. Get pre-approved for financing
Work with your TSAHC lender to submit income, employment, and credit information to get pre-approved.
4. Complete homebuyer education
TSAHC requires all borrowers complete an approved 8-hour homebuyer education course prior to closing.
5. Make an offer and finalize loan details
Once pre-approved, you can start home shopping! Work out final loan details with your lender when you’re under contract.
6. Close on your new home!
At closing, you’ll sign documents to finalize your mortgage loan and down payment assistance. Then celebrate as you get the keys to your new home!
Reaching out to an approved TSAHC lender is the first step to jumpstart the process. The lender will guide you through each stage from pre-approval to closing.
What Else Should Teachers Know About the Program?
Here are some additional details Texas teachers will want to keep in mind about the TSAHC home loan program:
- Down payment help can be used for closing costs too
- No first time homebuyer requirement
- Single family homes, townhomes, and condos are eligible
- Can be combined with other down payment assistance programs
- 30-year fixed rate mortgage with multiple rates available
- Home must be your primary residence
- Refinancing and selling guidelines apply to deferred down payment loans
TSAHC also provides resources like homebuyer education, toolkits, videos, and articles to help teachers become informed homebuyers.
Find a Lender and Get Started
The TSAHC website [url] has a search tool to connect you with lenders in your community that participate in the teacher home loan program. Reach out to a lender to start the ball rolling or call 800-508-4611 for assistance.
Buying a home is a big step. But with the right lender and loan program, teachers in Texas can absolutely make homeownership a reality. These special TSAHC mortgage loans and down payment grants provide affordable financing options designed specifically to meet the needs of educators across Texas.
Homes for Texas Heroes program
The Homes for Texas Heroes program was created in 2003 as a loan program for firefighters and law enforcement members, but was expanded to cover more categories of public servants in 2005. This program offers affordable mortgages and grant-funded financial assistance statewide on a first-come, first-serve basis. Unlike loans, these grants do not require repayment.Â
The purpose of the Homes for Texas Heroes program is to provide home loans for teachers and other public servants in Texas, especially those in need of financial assistance to purchase homes. This assistance can be used to cover upfront costs, down payments, closing costs, or prepaid fees necessary for homeownership. These fees and charges can be extremely expensive, preventing public servants from purchasing and maintaining residences.Â
Under the Homes for Texas Heroes program, full-time public K-12 teachers, teacher aides, school librarians, certified school counselors, and school nurses are eligible for the following types of loan assistance in the state of Texas:
- A 30-year fixed interest rate conventional mortgage loan, with various rate and loan optionsÂ
- Assistance for down payments through grants or forgivable second lien loans, meaning recipients arenât required to pay back fundsÂ
- Down payment assistance for anywhere from 3%-5% of the total loan amountÂ
- No first-time homebuyer requirement for applicants
- Available to certified teachers and other public educators through an expansive network of qualified lenders, so long as applicants are permanent residents in the state of TexasÂ
- Income limits to qualify for this program vary by county, expanded income, and limits on purchase price in certain areas
To qualify for the Homes for Texas Heroes program, teachers must meet the following requirements:Â
- Must be a permanent resident in the state of Texas for at least one year
- Must use property as their primary residenceÂ
- Must meet income limits that vary from one country to another
- Must meet certain credit score requirements, depending on lender, loan amount, loan length, loan terms, and total loan amountÂ
- Must show proof of identification and employment
- Must prove that they are professional educatorsÂ
When it comes to home loans for teachers in Texas, first-time home buyers and Texas Home Heroes loan recipients can also apply and qualify for a mortgage credit certificate, which is a type of interest tax credit that lowers the total amount of annual federal income taxes a homeowner must pay.Â
Home loans for teachers in Texas
Have you been thinking about buying a new home? While it can feel daunting, there are many resources available to teachers and other educators that can make the process a little easier. Here are three programs that you might want to consider:Â
Home Loans for Teachers
FAQ
What is Texas Home Program?
Can teachers get a lower mortgage rate?
Do teachers get benefits when buying a house in Texas?
What is the Texas Heroes program?
What are some good home loans for teachers in Texas?
Examples include the Texas State Affordable Housing Corporation’s Homes for Texas Heroes Home Loan Program, which offers teachers down payment assistance grants of up to 5% of the total loan amount. These loans are subject to income limits, but you do not need to be a first-time home buyer.
How can I get a home loan as a teacher?
Look into location-specific programs for teachers like the Texas State Affordable Housing Corporation’s Homes for Texas Heroes Home Loan Program, which offers teachers down payment assistance grants of up to 5% of the total loan amount. This can help you become a homeowner.
Can teachers buy a home in Texas?
The Homes for Texas Heroes program, Teacher Next Door program, and Good Neighbor Next Door program were designed to give teachers and other professional educators affordable ways to purchase homes in the state of Texas. If you’re a public educator, this type of loan assistance may be available to you.
Which is the best home loan program for teachers?
The Good Neighbor Next Door 1 program can help educators save up to 50% on certain home purchases. It is one of the most valuable mortgage loan options for teachers. Explore your home loan options.