Several friends of mine are teachers. Oftentimes, they feel like they can’t purchase home on a teacher’s salary. However, you’d be surprised. There are several programs available.
If you are a teacher in Austin, you could qualify for the Texas Heroes Home Loan Program and Homes Sweet Texas Home Loan Program which provides 30-year fixed rate mortgage loans to eligible first-time homebuyers at a low interest rate, as well as down payment and closing cost assistance in the form of grants. You don’t have to be a first-time homebuyer and there is no requirement for how long you have to live in the home. This program is available statewide – check with your lender or see if you qualify with this quiz.
If you are a first-time home buyer, you can also apply for a tax credit called the Mortgage Credit Certificate (MCC). With this you could save of up to $2,000 every year as a special tax credit based on the mortgage interest paid, meaning thousands of dollars saved over the life of your mortgage loan.
Additionally, the U.S. Department of Housing and Urban Development (HUD) offers the Good Neighbor Next Door Program (formerly the Teacher Next Door program) which helps teachers buy homes in low and moderate income neighborhoods by selling properties at a 50 percent discount off the list price. Many financing options, including FHA-insured mortgages that require a down payment of $100, make the program even more affordable.
See more information on financial assistance for educators.
*Information made available via the Texas State Affordable Housing Cooperation and the Texas Classroom Teachers Association as of May 2017.