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Teacher Next Door Program and Other Home Buyer Assistance for Educators

Closing cost assistance, down payment programs and home loans for teachers are available from a variety of sources.

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Kate Wood
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Trying to buy a home on a teacher's salary can be difficult, but there are national, state, local and lender-specific programs that can provide some relief. Doing your homework — sorry, we couldn't resist — could help you save thousands of dollars through home loans for teachers, as well as closing cost and down payment assistance.

Teacher Next Door program

Teacher Next Door is a national homebuying program that helps teachers, administrators and educational support staff, including coaches, maintenance staff and bus drivers, find housing assistance programs and benefits. The program directly offers eligible home buyers grants of up to $9,000, which don't have to be repaid. Its counselors can also connect you with down payment assistance of up to $24,000.
Additional benefits may include:
  • Discounted title insurance and home inspections
  • Appraisal rebate
  • Real estate agent rebate (must use a program-referred agent or an agent already affiliated with the program)
Availability:
  • Programs available in all 50 states; structure varies by city and state
  • Eligibility details provided after completing a pre-application form
You don't pay for Teacher Next Door's services, so what's the catch? Teacher Next Door isn't a government program or a nonprofit; it's a private agency. In order to take advantage of its services and benefits, you'll work with one of its select network of preferred lenders. That means that you won't be able to shop for a lender or compare mortgage rates.
That said, completing the Teacher Next Door pre-application won’t impact your credit score, so it may be worth pre-applying and speaking with a representative to learn about your eligibility.
🤓 Nerdy Tip
If you're a pre-K through 12th-grade teacher, you may combine the Teacher Next Door Program with HUD’s Good Neighbor Next Door program (administrators and support staff remain eligible for Teacher Next Door benefits only.)

Homes for Heroes program

Homes for Heroes Inc. offers a suite of discounted services to home buyers who are current or former teachers, from pre-K all the way to postsecondary. (Other jobs within the education system may qualify, too; contact Homes for Heroes to learn more.)
Working with Homes for Heroes can help offset the costs of buying, selling or refinancing a home, including title costs, home inspections, and real estate agent commissions. Homes for Heroes says home buyers and sellers who use its services save an average of $3,000.
» MORE: How the Homes for Heroes program works

Mortgage loans from our partners

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Union-affiliated home loans for teachers

If you're looking for mortgages that are specifically for educators, teachers unions can be a good place to start. Many national unions partner with specific lenders, and state or local union members (whether independent or a national chapter), may have access to member benefits. Some examples include:
  • National Education Association members can take advantage of a mortgage program through the First National Bank of Omaha (FNBO). This program has no application, processing or origination fees and offers conventional, FHA, USDA and VA loans.  Before committing to FNBO, you can shop rates by pursuing preapproval.
  • American Federation of Teachers (AFT) members are eligible for teacher mortgages through Wells Fargo Home Mortgage and the Union Plus Mortgage program. Benefits of the program include: a $1,000 grant for veterans, a $500 Wells Fargo My Mortgage Gift award after closing on a home, and up to $5,000 in credit for closing costs through Wells Fargo’s Dream. Plan. Home.

State and local homebuying programs for teachers

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. These loans are subject to income limits, but you don't need to be a first-time home buyer.
  • The Connecticut Housing Finance Authority discounts its published mortgage rates by 0.125% for teachers who are state certified and meet CHFA eligibility guidelines.
  • The Mississippi Employer-Assisted Housing Teacher Program provides closing cost assistance loans of up to $6,000 for teachers working in underserved areas of the state to buy homes within their school district's county. After the borrower teaches for three years in an underserved area, the loan converts to a grant.

Teacher home loans from credit unions

There are a number of credit unions for teachers nationwide that offer specialized home financing options to their members. For instance:
  • Schools First Federal Credit Union serves educators in the state of California and offers a School Employee Mortgage with a 3% down payment requirement and no private mortgage insurance (PMI).
  • Apple Federal Credit Union can help educators purchase a property in Virginia, Maryland, West Virginia, North Carolina and Washington, D.C., including a loan program specifically for educators that may require no down payment and features reduced PMI costs.
  • Gulf Coast Educators Federal Credit Union offers an Educator Mortgage for teachers and school district employees in the state of Texas. The loan doesn’t require a down payment or PMI, and the full price of the home can be financed. 

Mortgage loans from our partners

NBKC

on NBKC

NBKC

4.5

NerdWallet rating
Min. credit score

620

Min. down payment

3%

New American Funding

on New American Funding

New American Funding

4.0

NerdWallet rating
Min. credit score

N/A

Min. down payment

0%

GO Mortgage

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating
Min. credit score

620

Min. down payment

3%

COMPARE MORE LENDERS
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