Teacher salaries often do not allow teachers the means to save a large amount of money for a down payment or to pay a large monthly mortgage note. Teachers may be eligible for special loan programs that reduce or eliminate down payments and reduce interest rates to make loans more affordable for teachers. Teachers should explore many options before initiating a new home mortgage.
Join a national teacher organization. These organizations may offer special mortgage programs and down payment assistance programs. Some organizations to consider include the American Federation of Teachers and the National Education Association.
Contact your local state department of education to inquire about possible state-sponsored mortgage programs for teachers. Many states offer down payment grants and other assistance to teachers within their state.
Shop around for loans. First, check with your own bank and other local banks. If you do not find a suitable loan locally, check with a local mortgage broker or find national banks. Banks such as Wells Fargo and Bank of America offer special loan programs for teachers.
Tell lenders up front that you do not have funds available for a down payment and that you want a low interest rate. Telling them up front what you want will save time and money.
To reduce or eliminate closing costs, ask your bank or lender if closing costs can be added to the total loan amount.
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