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
Purchasing a home is a major milestone, but it can be financially challenging for teachers in Texas. Fortunately, the Texas State Affordable Housing Corporation (TSAHC) offers the Texas Teachers Home Loan Program to make homeownership more accessible. This program provides down payment assistance and competitive mortgage rates to qualifying Texas public school teachers.
Keep reading to learn about the key benefits eligibility criteria and step-by-step application process for the Texas Teachers Home Loan Program.
Overview of the Texas Teachers Home Loan Program
The Texas Teachers Home Loan Program is administered under TSAHC’s Homes for Texas Heroes initiative It offers the following benefits
- Competitive 30-year fixed-rate mortgage loan
- 3% to 5% down payment assistance
- Available for first-time and repeat homebuyers
- Offered statewide through a network of approved lenders
The down payment funds can be used toward purchasing a new home or refinancing an existing home Down payment assistance is provided as a grant or 3-year deferred forgivable second lien loan,
Teachers who are first-time homebuyers may also be eligible for a Mortgage Credit Certificate (MCC) for additional savings. An MCC provides an annual federal income tax credit based on mortgage interest paid.
The Texas Teachers Home Loan Program helps make homeownership affordable by reducing high upfront costs. Teachers can take advantage of low down payment options, tax savings, and interest rates not always available with standard teacher mortgage loans.
Am I Eligible for the Texas Teachers Home Loan Program?
To qualify for the Texas Teachers Home Loan Program, you must meet the following eligibility criteria:
- Currently employed full-time by a Texas public school district
- Work as a teacher, teacher’s aide, librarian, certified school counselor, or registered nurse
- Have a minimum credit score of 620
- Meet income limits based on area median income
- Occupy the home as your primary residence
All school employees are encouraged to take the online eligibility quiz on the TSAHC website. This short quiz will confirm if you pre-qualify based on your job, income, credit score, and other factors.
First-time homebuyers must also meet additional requirements to qualify for an MCC tax credit in conjunction with the program.
While geared toward teachers, TSAHC offers programs for other professionals as well. The Homes for Texas Heroes program also serves firefighters, EMS, police officers, veterans, and more.
Step-by-Step Process to Apply
Here is an overview of the step-by-step process to apply for the Texas Teachers Home Loan Program:
1. Take the Eligibility Quiz
Go to the TSAHC website and complete the online eligibility quiz. This will verify you meet the basic criteria.
2. Choose a Participating Lender
TSAHC partners with approved lenders across Texas. Search for lenders in your area and compare options.
3. Complete Application with Lender
Work with your selected lender to complete the full loan application and provide required documents.
4. Get Pre-Approved
The lender will review your application, credit, income, and assets to determine your pre-approval status.
5. Complete Homebuyer Education
You’ll need to finish an approved homebuyer education course before closing on the home purchase.
6. Make an Offer
Once pre-approved, you can start home shopping and make offers within your qualified price range.
7. Final Underwriting and Closing
Provide any additional needed documents for final underwriting. Then set your closing date with your lender!
Throughout the process, your lender will explain all requirements and paperwork needed to help guide you smoothly through closing.
How Much Can I Borrow with the Texas Teachers Home Loan Program?
The maximum loan amount you can qualify for will depend on factors like:
- Your income, assets, credit score, and debt-to-income ratio
- The purchase price and location of the home
- Whether you’re buying or refinancing
- If receiving down payment assistance and/or an MCC
Generally, the maximum loan amount is aligned with conforming loan limits set by the Federal Housing Finance Agency. These limits factor in the average home prices in counties across Texas.
As of 2023, the baseline conforming limit in most Texas counties is $726,200. That increases to $1,089,300 in certain higher-cost areas like Houston or Dallas.
Your lender will determine the specific mortgage amount, terms, and interest rate you qualify for based on a full review of your financial situation.
What Are the Interest Rates and Terms?
Through the Texas Teachers Home Loan Program, you can qualify for competitive mortgage interest rates and terms.
Benefits include:
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Lower interest rates – Since TSAHC is a nonprofit, they can offer interest rates below market averages. Current rates range from 5% to 7% APR.
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30-year fixed terms – Loan terms up to 30 years are available, which help keep payments affordable.
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No PMI – Private mortgage insurance is not required, even with low down payments.
Compare current rates and terms through TSAHC’s online rate table. Actual offers will vary by lender based on your application and credit profile.
Having a higher credit score, lower debt-to-income ratio, and larger down payment will help you qualify for the lowest rates.
Next Steps to Take
If you are a Texas teacher interested in buying or refinancing a home, follow these next steps:
- Take the TSAHC eligibility quiz
- Research current mortgage rates and terms
- Browse approved lenders in your area
- Talk to lenders about pre-approval and needed documents
- Enroll in a homebuyer education course
- Start shopping for your dream home!
The Texas Teachers Home Loan Program makes buying a home more feasible for educators across Texas. Tap into these resources to get started on the path to homeownership.
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
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
FAQ
Do teachers get help with buying a house in Texas?
What is the Texas Heroes program?
Who is eligible for Texas Homebuyer Program?
What new Texas benefits program can help teachers and educators to save thousands on their home purchase or refinance?
What are some good home loans for teachers in Texas?
Examples include: 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 don’t need to be a first-time home buyer.
How do I get a home loan if I’m a teacher?
Look into location-specific programs for educators that may be able to help you become a homeowner. Examples include: 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.
What are home loans for teachers?
Home loans for teachers are specialized mortgage loan programs designed to support educators in purchasing a home. These “teacher mortgages” often come with benefits such as lower interest rates, reduced down payment requirements, and assistance with closing costs.
Does FCU offer a teacher mortgage program?
Home » Real Estate Loans » Educator Mortgage Gulf Coast Educators FCU offers a one of a kind Teacher Mortgage program just for teachers and school employees in the state of Texas. If you are a teacher or school employee looking to buy a home, you are in luck.