Teacher & Educator
Mortgage Loans in NJ
Special mortgage programs for New Jersey teachers and educators: down payment assistance, exclusive programs, and competitive rates for those who educate our communities.
Programs for Teachers & Educators
Teacher Next Door (HUD)
Get 50% off list price on HUD-owned homes in revitalization areas. Must commit to living in the home for 3 years.
HomeReady & Home Possible
3% down payment loans with reduced mortgage insurance costs. Accept income from non-occupant co-borrowers (parents helping teachers).
Down Payment Assistance
NJ educators may qualify for down payment grants and forgivable loans through state and local programs.
Frequently Asked Questions
Are there special mortgage programs for teachers in NJ?
Yes! Teachers have access to: (1) HUD Teacher Next Door program (50% off HUD homes), (2) HomeReady/Home Possible loans (3% down, reduced MI), (3) NJHMFA down payment assistance, (4) Local grants for educators in specific districts. Many lenders also offer teacher discounts on rates and fees.
What is the Teacher Next Door program?
HUD's Teacher Next Door program offers teachers 50% off the list price of HUD-owned homes in revitalization areas. Requirements: (1) Must be full-time teacher (K-12), (2) Purchase a HUD-owned home, (3) Live in the home as primary residence for 3 years, (4) Complete homebuyer education. This is an incredible deal but has limited inventory.
How much do teachers need for a down payment?
As little as 3% with HomeReady or Home Possible loans. For a $400K home, that's $12,000 down. With down payment assistance programs, teachers may receive $10K-$15K in grants, reducing out-of-pocket costs to $2K-$5K total. Some teachers use gift funds from family to cover remaining costs.
Can teachers with student loans still qualify for a mortgage?
Yes! While student loans impact DTI (debt-to-income ratio), teachers can: (1) Use income-based repayment amounts in DTI calculations, (2) Apply for student loan forgiveness programs (reduces future obligations), (3) Choose loan programs with higher DTI allowances (up to 50%), (4) Add non-borrower income (HomeReady/Home Possible). Many teachers with $40K-$80K in student debt successfully buy homes.
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Explore special programs and assistance designed for teachers and educators in New Jersey.
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