Teacher Mortgage Programs 2026: Special Home Loans & Grants for Educators
Teachers deserve special home buying benefits. The HUD Good Neighbor Next Door program offers 50% off certain homes (only $100 down!). State programs provide $5,000-$35,000 in grants. Homes for Heroes saves $3,000+ in fees. FHA loans accept 580 credit scores with 3.5% down. This guide covers every program available to educators in 2026.
How Much Can Teachers Save on a Home Purchase?
6 Teacher Mortgage Programs Compared (2026)
| Program | Benefit | Down Payment | Commitment | Eligibility |
|---|---|---|---|---|
| HUD Good Neighbor Next Door | 50% off list price | $100 | 3-year residency | K-12 teachers in HUD areas |
| Teacher Next Door | Grants + lower rates | Varies | None | All educators |
| Homes for Heroes | $3,000+ reduced fees | Standard | None | Teachers + first responders |
| State DPA Programs | $5K-$25K grants | 0-3% | 3-5 year forgivable | Income-qualified educators |
| NEA Member Benefits | Reduced rates + $500 credit | Standard | NEA membership | NEA union members |
| Educator Mortgage Program | Reduced closing costs | Standard | None | Certified teachers |
Teachers: Get Pre-Approved in Minutes
Compare rates from lenders that offer educator discounts. FHA 3.5% down with 580 credit.
Get Educator Pre-Approval1. HUD Good Neighbor Next Door: 50% Off for Teachers
The best-kept secret in home buying — HUD sells certain foreclosed homes at 50% off to qualified teachers, law enforcement officers, firefighters, and EMTs.
Good Neighbor Next Door Requirements:
- • Who qualifies: Full-time K-12 teachers at state-accredited schools
- • Discount: 50% off HUD appraised value
- • Down payment: Only $100 (yes, one hundred dollars!)
- • Commitment: Must live in the home for 36 months
- • Location: Must be in a HUD-designated revitalization area
- • How to apply: Check listings weekly at hudhomestore.gov
- • Selection: If multiple bids, winners chosen by lottery
Pro tip: New listings appear every Thursday. Set up alerts to be first to bid.
2. State-by-State Teacher Programs (Top 10 States)
| State | Program | Benefit |
|---|---|---|
| California | CalHFA Teacher Program | Up to $25,000 DPA + below-market rates |
| Texas | Homes for Texas Heroes | Below-market rates + 3-5% DPA |
| Florida | Hometown Heroes | Up to $35,000 0% interest DPA |
| New York | SONYMA Teacher Program | Up to $15,000 DPA + reduced rates |
| Illinois | IHDA Teacher Grant | Up to $10,000 forgivable grant |
| Georgia | Georgia Dream Teacher | Up to $7,500 DPA + below-market rates |
| North Carolina | NC Home Advantage | Up to $15,000 DPA for educators |
| Ohio | OHFA Teacher Grant | Up to $10,000 with 2.5% DPA |
| Arizona | Home Plus Teacher | Up to 5% DPA grant |
| Colorado | CHFA Teacher Program | Up to $25,000 second mortgage DPA |
Programs and amounts subject to change. Check your state's housing finance agency for current details.
3. Homes for Heroes: $3,000+ in Savings
Homes for Heroes is a nationwide program that connects teachers with real estate agents and lenders who offer reduced fees:
- Average savings: $3,000+ on a typical home purchase
- How it works: Register at homesforheroes.com, get matched with Hero-affiliated agents and lenders
- Savings come from: Reduced agent commissions, lender fee credits, title/closing discounts
- No cost to join: Free program, no obligations
- Eligibility: All K-12 teachers, administrators, support staff
4. Teacher-Friendly Loan Options
Beyond special programs, teachers have excellent standard loan options:
- FHA Loans: 3.5% down with 580 credit — perfect for teachers early in their career. See FHA limits by county
- USDA Loans: 0% down in rural areas (many teaching jobs are in rural communities). USDA eligibility guide
- VA Loans: For veteran-teachers — 0% down, no PMI. VA loan guide
- Conventional 3% Down: HomeReady/Home Possible programs for moderate-income buyers
5 Steps for Teachers to Buy a Home in 2026
- Check your credit score (free at AnnualCreditReport.com). Target 640+ for most programs, 580+ for FHA.
- Apply for teacher-specific programs in your state BEFORE starting house hunt. Some have limited funding.
- Get pre-approved with a lender who works with educator programs. Compare educator-friendly lenders.
- Stack multiple programs — you can combine state DPA + Homes for Heroes + FHA in most cases.
- Check Good Neighbor Next Door listings weekly at hudhomestore.gov for 50% off deals.
Frequently Asked Questions
What mortgage programs are available for teachers in 2026?
Teachers have access to several special programs: HUD Good Neighbor Next Door (50% off HUD homes), Teacher Next Door (grants + lower rates), state housing agency programs ($5K-$25K down payment assistance), Homes for Heroes (reduced fees), and FHA loans (3.5% down, 580 credit). Many states also offer teacher-specific grants and forgivable loans.
What is the Good Neighbor Next Door program for teachers?
HUD Good Neighbor Next Door offers 50% off the list price of HUD-owned homes in revitalization areas. Available to K-12 teachers, law enforcement, firefighters, and EMTs. You must live in the home for 3 years. Only $100 down payment required. Homes are listed weekly at hudhomestore.gov.
Can teachers get down payment assistance?
Yes. Teachers can access multiple DPA programs: state housing agency grants ($5,000-$25,000), Teacher Next Door program (up to $6,000), Educator Mortgage Program (reduced closing costs), local school district partnerships, and union-negotiated benefits. Many are forgivable after 3-5 years of continued teaching.
Do teachers get lower mortgage rates?
Some programs offer reduced rates: Homes for Heroes saves 0.25-0.50% on rates plus $3,000+ in reduced fees. Teacher Next Door partners with lenders for below-market rates. Credit unions often offer educator discounts of 0.125-0.25%. Combined savings can reach $10,000-$30,000 over the life of the loan.
What credit score do teachers need for a mortgage?
Teachers have the same credit requirements as other borrowers, but with more program options at lower scores: FHA loans accept 580+ (3.5% down), VA loans for veteran-teachers accept 580+, USDA loans need 640+ for rural areas. Many teacher-specific programs have no additional credit requirements beyond the base loan type.
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