Real Estate Deals for Teachers

US Credit Downgraded, Fed Holds the Line on Interest Rates

2011-08-10T15:39:00.000-07:00

The S&P downgraded the US credit to AA+. It is a bump from the sterling AAA rating we used to enjoy and it could mean more costly mortgages. But the Fed said it will keep interest rates extraordinarily low until 2013. What does this mean? Well, it might turn out to be a wash. That is, the Fed might successfully counteract the effects of the S&P's downgrade from a consumer borrower's perspective. Mortgages may be getting harder to get as Fannie and Freddie feel a new pinch. Then, the programs available to teachers and other special mortgage programs may be more important. The goal will not be to get a great rate. Great rates will abound until 2013. The goal will simply to get a mortgage at all. Special teacher mortgage programs can help with availability. Search the site to see what your area offers.

Is Teacher's Advantage Home Mortgage Loan Program worth it?

2011-03-06T12:32:00.000-08:00

Home Finance of America offers a program called the Teacher's Advantage Home Mortgage Loan Program. The benefits seem pretty slim, so is ultimately worth it?

The benefits are a small fee reductions, a few $100 here a few $100 there, and the vague promise of future benefits, though no specifics are offered. So, the answer is, it is worth a few $100, but only if they are already offering the best rate. It would not make any sense to use them, get a worse rate and save a few dollars up front. The difference in rates would equal thousands of dollars over time.

This program brings up an important theme in real estate deals or mortgage deals for teachers: go with the best rate. While this theme might seem obvious, it is natural and unfortunately common to be lured by "Free" deals or other gimmicks. If the gimmicks didn't work on someone, they wouldn't exist. Always calculate the numbers yourself and see what deal makes the most sense in the long run.

While in general, the deals I highlight on this site are good deals, in some cases it makes sense to skip one deal to make the next one available. Or, more commonly, it makes sense to skip a deal to leave yourself in a more flexible position.

Changes at HUD's Good Neighbor Next Door (GNND)

2010-12-19T21:17:00.000-08:00

Change is afoot at the GNND website. It seems HUD has dropped the contracted website managers who used to maintain listings for them. There used to be a complicated system in which there were multiple websites each serving a different region. Now, there is one website for the whole US. It has been re-branded the HUD Homestore. The website is great it is sortable by category, including price and there are drop down menus where one can select GNND or any other type of sale. The website is fully searchable by county, price range, and number of bedrooms.

http://hudhomestore.com/HudHome/Index.aspx

The Mortgage Morass

2010-10-16T10:50:00.000-07:00

In the midst of the high flying housing bubble, mortgage companies sold at such a volume that many didn't or couldn't keep up with all the paperwork. What that means for the nation's housing market now is that there are many houses that should be foreclosed but can't because no one can prove that there's a mortgage. Or worse, companies are trying to foreclose on houses on which there is no mortgage.

What this means long term is that the bottom of the housing market still may be ahead. If banks can't foreclose and move their inventory then housing prices will stay low as these houses trickle onto the market over the next many years. Read more about it here in Paul Krugman's column from the New York Times.

What do low mortgage rates mean for teachers?

2010-08-17T15:19:00.000-07:00

The Fed recently announced that borrowing rates will remain at record low levels. What does this mean for teachers? It that everyone will continue to get great rates on their mortgages, but that many of the mortgage deals for teachers will be irrelevant or discontinued.

Some real estate deals are even better with low rates. For example, deals that offer interest free loans are still worth the trouble. Interest free always beats low interest. The Good Neighbor Next Door program is now an incredible deal. Teacher who buy now, not only buy a house for 50% off, they also get a good rate on their mortgage.

Search the deals above or browse the deals within to find out more.

Good Neighbor Next Door Sees a Resurgence

2010-04-10T09:36:00.000-07:00

I posted a while ago that I was worried that the GNND program from HUD that gives teachers, firefighters, and police officers the opportunity to buy homes at a 50% discount was drying up. At that time, while the market was flooded with foreclosures, I saw only 3 come to market in 8 months in the Twin Cities market. Recently, however, I have seen a resurgence. There have been nearly a dozen in the last two months. Perhaps HUD was waiting for the market to bottom out before putting more GNND houses out there.

As Homebuyer's Tax Credit Ends, Mortgage Help for Teachers Becomes More Important

2010-04-10T09:32:00.000-07:00

The new homebuyer's tax credit will end soon. It doesn't look like Congress has the wherewithal to renew it a second time. While this means that people will be missing out on the $8,000 tax credit, it means that home prices might dip again on the other side of April as there is a lull in buying following the rush of last minute buyers.

Once the tax credit disappears, it will become easier and more important to take advantage of deals listed on this site that are especially geared toward teachers.

First-time Home Buyer Drying Up

2010-02-17T16:47:00.000-08:00

The $8,000 first-time home buyer credit is going to end soon, but many of the real estate deals for teachers will continue. While we won't be able to take advantage of this credit, it might free up houses for teachers looking to utilize special programs like the Good Neighbor Next Door program. Also, expect prices to to drop after the credit goes away.

Good Neighbor Next Door dying out?

2010-01-29T18:18:00.000-08:00

I've noticed a decline in this real estate deal in which teachers (and police officers and firefighters) get a house for 50% of the appraised value. Other blogs have mentioned similar declines in other markets. Is it possible that HUD is quietly letting this program die out? It is a horrible mistake.

Increase your buying power with loan forgiveness

2009-11-21T15:03:00.000-08:00

When a mortgage officer calculates a first-time home buyer's buying power. The officer calculates how much buying power based on the buyers current debt load.

Teachers can increase their home buying power by reducing their debt load with student loan forgiveness. Learn about teacher Stafford and Perkins loan forgiveness.

See the difference when a teacher reduces his or her debt level by having a 17,500 Stafford loan forgiven and a 6,000 PLUS loan forgiven.

Good Neighbor Next Door Homes available in Waukegan and Rockford, IL

2009-10-25T18:08:00.000-07:00

These homes are available at 50% discount off the mortgage.

Iowa has a home listed for the Good Neighbor Next Door Program

2009-10-25T17:56:00.000-07:00

Follow this link to see the home that is available at a 50% discount for teachers.

Will the tax credit continue?

2009-10-04T12:48:00.001-07:00

The $8,000 tax credit for first-time home owners helps many more than just teachers, but will it continue in 2010? Many think it will. Realty and home builder lobbies love it, and it could be the sole reason housing prices bottomed this summer. Without it, home prices might start testing new lows.

But time is running out on the credit, and there will likely be a hangover effect on housing prices after the November rush is processed.

Arkansas offers forgiveable loans and rental stipends to teachers

2009-07-23T13:46:00.000-07:00

Arkansas offers loans that are forgivable up to %10 of the purchase price of a new home to teachers who agree to teach in specified schools for five years. Those teachers who do not choose to buy can still take advantage of the program through a rental stipend worth $2,000.

Mississippi offers $6,000 for closing costs

2009-07-23T13:40:00.000-07:00

Mississippi offers up to $6,000 to help with closing costs on a home purchased in a rural district designated in this program. The state requires that teachers remain in that district for at least 3 years.

Bank of America Offers a Loan to All Teachers

2009-07-14T08:12:00.000-07:00

This loan called specialized profession loan is available to teachers, police officers, firefighters and medical personnel. The website does not give specifics on what interest rates or discounts they offer to teachers, but BoA does offer "free" life insurance as part of the package.

South Carolina offers special interest rates and money for down payments

2009-07-02T10:01:00.000-07:00

The Palmetto Heroes Program is nearly a year old now. It may be in need of a new infusion of cash, but nevertheless, it is worth monitoring. South Carolina offers teacher help with down payment and, during 2008, offered what was a good rate. New initiatives to lower interest rates now make that special rate less attractive.

If you are looking in the Greenville area, read this post on where to live in Greenville.

Los Angeles Teacher Mortgage Assistance Program

2009-06-27T12:36:00.000-07:00

Conveniently shortened to LATMAP, the Los Angeles Teacher Mortgage Assistance Program has a veritable warehouse of resources and links for teachers who are interested in owning their own home in Los Angeles County. This unique public-private partnership provides some of the best mortgage deals for teachers out there.

NYC give housing support to critical needs-area teachers

2009-06-21T12:26:00.000-07:00

Only Mathematics, Science, and Special Education teachers are eligible for this program, but the benefits are huge. To start, teachers receive $5,000 in housing support money in the first few weeks of teaching. The money can be used to cover everything from moving expenses to a down payment on a mortgage. Then, after two years of teaching, there is another $10,000 available.

Texas Classroom Teacher's Association Reports Mortgage Assistance

2009-06-21T10:35:00.000-07:00

The assistance comes in the best form–a grant. That means it does not have to be repaid, but it seems that the money is by application only and is first come, first serve. They offer %5 toward closing costs and down payment up to $5,000.

Chicago Public School Teachers Enjoy Special Status with Lenders

2009-06-20T12:49:00.000-07:00

Chicago Public Schools has arranged a variety of deals for teachers with different lenders including one that offers 55% off lender fees and another that offers a $4,000 grant for CPS employees. Read more about it here.

Connecticut Offers Special Rates on a 30-year Mortgage

2009-06-19T13:05:00.000-07:00

For all of those teachers who spent hours teaching children to spell the state's name, Connect-I-Cut is offering fixed rate 30-year mortgages at a special rate. You can see this week's rate by following this link. It changes every week. The page also has information about down payment assistance.

California's Extra Credit Program Gives Down Payment Help

2009-06-19T12:51:00.000-07:00

For teachers who teach in certain schools, the California offers assistance of up to $7,500 for a down payment. Here's the link.

Ohio offers a lower mortgage rate for teachers

2009-06-08T15:26:00.000-07:00

The Ohio Housing Finance Agency offers a .25% cut in their lending rate and down payment assistance for teachers, police, and firefighters.

San Francisco Offers $20,000 Loan to Teachers

2009-06-08T15:23:00.000-07:00

This program may have fallen victim to the budget crisis in California, but I would expect it to revive. With housing as expensive as it is in San Fran, teachers need this kind of help. The program gives a $20,000 loan that slowly disappears. Even if you move in a year or two, only the principle is due back to the city, making it an interest free loan.

St. Paul Offers $15,000 to Buy a Home

2009-06-08T15:13:00.000-07:00

The city of St. Paul, Minnesota is offering a $15,000 loan for teachers to purchase a home within the city limits.

The loan is interest free! And you don't have to pay it back until you sell the home.

Buy a Home for Half-Price

2009-05-27T17:16:00.000-07:00

Teachers can buy a home for 50% of the home's appraised value through a program called the Good Neighbor Next Door Program. The Department of Housing and Urban Development offers homes in predetermined areas to teachers, firefighters, police officers, and EMTs before offering them to the general public.

Is there a catch? Yes. The catch is that you have live in the home for three years and students at your school must come from that neighborhood. For this reason it is much easier to qualify for this program (or to find an eligible house) if you teach at a private or a charter school.

At the end of the three years, though, the house is yours. You can turn around and sell it. Even selling it at the original appraisal price would mean a handsome profit.

The Pay May Not Be Much But the Benefits are Nice

2009-05-27T16:56:00.000-07:00

We all know that teachers are over-worked and under-paid. I know first hand. When I went to buy my first home, I didn't have a lot of income (comparable to my student loan debt), but one asset proved valuable–my career choice.

Teachers, there are deals out there that, properly utilized, can help you reap huge rewards. This site culls some of the data for you.