If you’re 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

Home loans for teachers in Texas

school teacher talking to students

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: 

 

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. 

 

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. 

 

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 options 
  • Assistance for down payments through grants or forgivable second lien loans, meaning recipients aren’t required to pay back funds 
  • Down payment assistance for anywhere from 3%-5% of the total loan amount 
  • 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 Texas 
  • 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: 

  • Must be a permanent resident in the state of Texas for at least one year
  • Must use property as their primary residence 
  • 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 amount 
  • Must show proof of identification and employment
  • Must prove that they are professional educators 

 

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. 

 

Good Neighbor Next Door program

Professional teachers (pre-K through 12th grade) looking for affordable ways to purchase homes also have access to the US Department of Housing and Urban Development’s (HUD's) Good Neighbor Next Door program

HUD  provides a generous financial discount of 50% off the total list price of a particular dwelling, so long as the buyer promises to use it as their primary residence for at least 36 months. 

Single-family homes that are eligible for this program are typically located in targeted revitalization neighborhoods and are listed for sale for one week. Properties available as part of the Good Neighbor Next Door program that are for sale in Texas can be found here. HUD asks applicants to agree to a second mortgage and note for the discounted financial amount. 

 

Teacher Next Door program

Teachers in Texas are eligible for financial grants of up to $4,170 through the Teacher Next Door program, which is available to pre-K through 12 teachers, school administrators and other educational staff members. Additionally, educators may qualify for up to $10,681 of down payment assistance. Qualified applicants can apply here. 

 

Get started today!

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. Learn how Texas Tech Credit Union can help you buy the home of your dreams.

 

Home Buying Guide