Florida Teacher Home Loan Programs

Good news for Florida Teachers –  FHA and USDA offers some great mortgage programs available for public service workers that require little to no money down. Whether you are a pre-kindergarten or college teacher, now you can easily realize your homeownership dream.

Let’s take a deeper dive to find out what these home mortgage programs for teachers are and how you can benefit:

Good Neighbor Next Door – HUD-FHA Niche Offering:

The Good Neighbor Next Door Loan is the HUD-FHA (Federal Housing Administration) niche offering. It is a program that is focused on revitalizing communities, with the help of public service professionals, like teachers, and in return, helping them become homeowners.

How does it work?

Here’s how this program works:

• Eligible single-family homes located in targeted communities (revitalization areas) are listed for sale through this program. These properties are available for purchase for 7 days.
• To participate, all you need to do is submit your interest for a specific home. If more than two people submit an offer for the same home; the selection is made by a random lottery.
• In addition to this, to qualify you must meet all the requirements such as:
• You can apply for the Good Neighbor Next Door program if you are employed as a full-time teacher by a state-accredited public or private school that offers direct services to students from pre-kindergarten to 12^th grade
• The school where you are employed at; must serve students from the area where the new home is that you’re planning to purchase.
• HUD offers big discounts from the listed price of the home (oftentimes 50%) however, the teacher (the borrower) must commit to live in the property for 3 years after purchase and contribute to the community’s revitalization

100% USDA 502 Guaranteed Loan:

This is a government-backed/insured loan program designed to help rural communities expand by making homes in these areas affordable through easy credit requirements. USDA is currently the only 100 percent no money down mortgage available for non-military VA homebuyers. The program is perfect for public service workers like Florida Teachers who may have limited money saved for a down payment.

Here are some of the many benefits that this program offers to teachers:

• USDA mortgages require no money down up to 101 percent financing (Guarantee Fee of 1% included)
• No complicated requirements, special classes, or education requirements. Get pre-approved and out searching for a home all on the same day.
• In comparison to FHA, USDA has much lower monthly mortgage insurance – PMI cost
• USDA closing cost can be rolled into the loan in some cases or paid by the seller of the home you choose
• There is no maximum loan amount limit with USDA loans
• No assets as collateral are required to qualify for USDA loan
• You can qualify for a USDA loan with a minimum credit score of 620
• Government-backed USDA loans are secure with a low 30-year fix interest rate
• The home being purchased doesn’t need to meet any “special requirements” as the home can be a short-sale, foreclosure, bank owned, buy owner type home sale or a regular sale. The home should only be located in a USDA approved area and be in good working order.
• The borrower’s household income will need to be below the set income limits per county.

FHA HUD $100 Dollar Down Program:

This program offers $100 down payment on select HUD-owned homes.  Buyers can learn more about the HUD 100 dollar down loan here.

So, if you are a teacher in Florida with limited finances, don’t let this stop you from realizing your dream of homeownership. Interest rates are still very low, buyers can often own a home for less than their current rent payments. The best part is this can be done with little to no money out of pocket.

Florida Hometown Heroes Program:

The Florida Hometown Heroes program is a state-sponsored down payment assistance program for any income-eligible first-time buyers in Florida. The program remains a leading choice for many Florida teachers. This program is designed to help qualified first-time homeowners buy their dream home with no down payment or closing costs expense.

The Florida Hometown Heroes program combines a deferred 0% interest second mortgage loan with up to 5% of the loan amount ($35,000 max) in assistance for down payment and closing costs. There will also be a minimum grant amount of $10,000 for buyers purchasing a home less than $200,000

This second mortgage becomes due (paid in full) upon sale of the property, refinancing of the first mortgage, transfer of deed, or if the homeowner no longer occupies the property as their primary residence. The Florida Hometown Heroes mortgage is not forgivable.  The program can be used together with any Conventional, FHA, VA, or USDA mortgage.

Hometown Heroes Eligibility Requirements

To be eligible for the Hometown Heroes Program, borrowers must meet the following requirements:

• You must be a first-time homeowner with no homeownership in the previous three years.
• Credit score minimum of 640 for all applicants.
• The income of all applicants must be below the set income limit per county.
• Must purchase a primary residence in the state of Florida  (Not eligible for investment or second homes)
• Must be employed by a Florida-based employer and work 35 hours per week. *Active military and veterans are exempt from this requirement.
• Applicants must take an approved HUD homebuyer education course. *Military veterans are exempt from this if using a VA loan.

Please some common Hometown Heroes FAQs here.

Give us a call today to chat about the great financing options available for Florida Teachers.  Call Ph: 800-743-7556 – we’re open on weekends!  Interested buyers can also submit the quick Info Request Form on this page.