10 Teacher Homebuying Programs to Consider in 2026
Teacher homebuying programs are specifically designed to help teachers make their goal of becoming homeowners in the areas near where they work more achievable. Teacher homebuying programs can provide grants, reduced down payment requirements, discounted interest rates and more, through combining federal, state, union and local programs.
Continue reading to learn more about the different teacher homebuying programs, how to qualify for one and their eligibility requirements.
At a glance: Teacher homebuying programs
| Program name | Key features | Who is it best for? |
|---|---|---|
| Good Neighbor Next Door | 50% off list price | Teachers willing to commit to living in one place for at least three years |
| Teacher Next Door | Grants, down payment assistance and interest rate discounts | Teachers who want to buy a home in their preferred location |
| Homes for Heroes | Lender credits and fee reductions | Former or retired teachers who want to buy a home |
| Teacher union programs | Interest rate discounts, down payment assistance and fee reductions | Current teacher union members who want to buy a home in a preferred location |
| Bank and credit union programs | Down payment assistance and fee reductions | Teachers who have an existing relationship with a bank or credit union (or who are willing to join) |
| National Homebuyers’ Fund down payment assistance | Down payment and closing cost assistance | Teachers with a reliable income who need help with the down payment or closing costs |
| Educator Mortgage Program | Real estate fee reductions and discounted closing cost fees | Public and private school teachers who want streamlined loan processing |
| State homebuying programs | Down payment assistance, discounted closing costs and reduced interest rates | Teachers committed to living and working in certain areas |
| Government-backed loans | Low down payment and credit score requirements | Teachers with lower credit scores |
| Conventional loans | Low down payment | Teachers with good credit and a down payment who want more flexibility with home and location choice. |
1. Good Neighbor Next Door
The U.S. Department of Housing and Urban Development (HUD) operates the Good Neighbor Next Door program.
In exchange for a commitment to live in the property for at least 36 months, this program provides a substantial discount to eligible teachers, first responders and certain medical professionals. The Good Neighbor Next Door program offers a 50% discount on the home’s list price.
Properties are located within designated revitalization areas. Once an eligible property is listed online, it will only be available for bidding for seven days. You can check the listings online and submit your bid. If more than one person submits an offer on a property, HUD will select the buyer by random lottery.
HUD does require homebuyers to sign a second mortgage for the discounted amount. No interest or payments are due on this second mortgage as long as you fulfill the residency requirement of the program.
Listings are limited and may only be available in some states.
How to qualify
- Work in an accredited public or private school as a full-time teacher
- Commit to living in the property for at least 36 months
- Select an eligible property
- Submit a bid through a HUD-registered broker
Who it’s best for
Teachers willing to commit to living in one place for at least three years.
2. Teacher Next Door
Teacher Next Door is a national homebuying program that offers various benefits to eligible educators, including grants and down payment assistance. Unlike the Good Neighbor Next Door program, you’re not limited to buying a home in certain areas. Here are a few of the program benefits:
- Homebuying grants up to $9,000
- Down payment assistance up to $24,000
- No application fees
- No upfront fees
- Free home appraisal (up to $545 credit at closing)
- Dedicated buyer’s agent
How to qualify
- Work as a private or public school teacher
- Must work with a Teacher Next Door agent
- Apply for financing through a Teacher Next Door preferred direct lender or partner national bank
Who it’s best for
Teachers who want to buy a home in their preferred location.
3. Homes for Heroes
Homes for Heroes is a nationwide network of real estate and mortgage professionals who can assist teachers with buying a home. On average, teachers can save $3,000 when buying or selling a home through Homes for Heroes. That can offer a significant discount for teachers who earned $48,112 on average in 2025.
Depending on your situation, you could be eligible for the following savings:
- Agent savings ($700 for every $100,000 of the home price)
- $500 lender credit
- Title service discount (average of $150 in savings)
- Home inspection discount (average of $50 in savings)
To get started, you must fill out and submit a form. Afterward, a Home for Heroes agent will contact you to find out what kind of home you’re looking for and to review potential savings opportunities.
Unlike other programs, Homes for Heroes isn’t limited to current teachers. Active, former and retired teachers are eligible.
How to qualify
- Be an active, former or retired teacher
- Work with a Homes for Heroes real estate agent or loan officer
Who it’s best for
Former or retired teachers who want to buy a home.
4. Teacher union programs
Your local or national teachers’ union may be a valuable resource as you start the homebuying process. Some teacher unions partner with banks or credit unions to offer specialized mortgage products for their members. For example:
- American Federation of Teachers (AFT): As an AFT member, you can finance your home through Wells Fargo’s Union Plus Mortgage Program and qualify for a $500 My Mortgage Gift. You may also be eligible for grants to use as a down payment or a closing cost credit worth up to $5,000.
- National Education Association (NEA): Through a partnership with the First Bank of Omaha, NEA members can qualify for reduced fees, giving them an estimated savings of $1,280.
- United Federation of Teachers (UFT): UFT members can apply for a mortgage through a UFT partner lender and qualify for reduced interest rates, down payment assistance and reduced fees.
How to qualify
- Be a qualifying member of a teacher union
- Work with a union partner lender
Who it’s best for
Current teacher union members who want to buy a home in a preferred location.
5. Bank and credit union programs
Some banks and credit unions have special programs for teachers who want to purchase a home. For example:
- Heritage Bank: Heritage Bank provides teachers with up to $1,000 in credits toward closing costs, and you may be eligible for down payment assistance and reduced private mortgage insurance (PMI) requirements. The bank operates locations in South Dakota and Minnesota.
- Silver State Schools Credit Union: Silver State Schools Credit Union, a Nevada-based credit union, offers a special mortgage option for teachers that doesn’t require a down payment.
- Teachers Federal Credit Union: Through the Teachers Smart Mortgage Program, eligible teachers can take advantage of low down payment requirements and interest rate discounts.
How to qualify
- Be an existing bank customer or credit union member
- Meet the bank or credit union’s credit requirements
- Work as a teacher in a public or private school
Who they’re best for
Teachers who have an existing relationship with a bank or credit union (or who are willing to join).
6. National Homebuyers’ Fund (NHF) down payment assistance
The NHF offers a down payment assistance program that provides teachers with grants for down payments or closing costs, up to 5% of the mortgage loan amount. The homebuyer doesn’t have to be a first-time homebuyer, and the assistance can be used with conventional, Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) or U.S. Department of Agriculture (USDA) loans.
The program is sponsored by the NHF and it’s available through participating lenders nationwide.
How to qualify
- Must work with a participating lender
- Must fall within the income limits for your county
- Must use the property as a primary residence
Who it’s best for
Teachers with a reliable income who need help with the down payment or closing costs.
7. Educator Mortgage Program
Available through Supreme Lending, the Educator Mortgage Program provides up to $800 in discounted closing costs and up to $800 in discounted real estate agent fees. Plus, the lender will donate up to $400 to your preferred school.
To qualify for the discounts, you must work with Supreme Lending and a participating real estate agent.
How to qualify
- Work as a teacher full-time
- Qualify for a loan through Supreme Lending
- Connect with a partner real estate agent
Who it’s best for
Public and private school teachers who want streamlined loan processing.
8. State homebuying programs
To attract and retain teachers, some states operate their own homebuyer assistance programs for educators. Programs range from down payment assistance to forgivable loans and they have residency requirements. For example:
- Connecticut: The Connecticut Teachers Mortgage Assistance Program gives teachers an 0.125% discount on their mortgage. It offers a higher reduction of 0.25% for teachers who meet the eligibility requirements for its Recruit & Retain program.
- Texas: The Texas Homes for Texas Heroes provides eligible teachers with a mortgage and funding toward your down payment. The down payment can be a grant, a deferred forgivable second lien that only has to be repaid if you sell or refinance within three years.
- Nevada: The Nevada Home Is Possible Program provides up to $7,500 in down payment and closing cost assistance. The loan is forgivable after five years if you stay in the home.
- Oklahoma: Teachers may be eligible for special interest rates on purchases of primary residences through the Oklahoma Housing Finance Agency.
- South Carolina: The South Carolina Palmetto Heroes program provides reduced, fixed-rate mortgages and up to $10,000 in down payment assistance to teachers and first responders.
Visit your state housing agency to find out if there are eligible programs in your area.
How to qualify
- Be a full-time teacher in an eligible area
- Meet program income requirements
- Purchase a primary residence
- Commit to living in the home for a specific period
Who they’re best for
Teachers committed to living and working in certain areas.
9. Government-backed loan programs
As a teacher, you could qualify for a standard government-backed mortgage. These types of loans are popular with first-time homebuyers and people with lower credit scores because they typically have lower credit score and down payment requirements than conventional loans. Types of government-backed loans include:
- FHA loans are insured by the Federal Housing Administration. To qualify, you’ll need at least a 500 credit score and a 10% down payment. If your credit score is 580 or higher, you can make a down payment as low as 3.5%.
- VA loans are guaranteed by the U.S. Department of Veterans Affairs and aim to make homeownership more accessible to military service members and veterans. About 2% of K-12 teachers are military veterans and a VA loan could be a good fit for those teachers. VA loans don’t require a down payment or minimum credit score. However, your loan costs will include a VA funding fee and home appraisal.
- USDA loans are backed by the U.S. Department of Agriculture and designed to help low- and moderate-income borrowers buy homes in rural areas. These loans don’t require a down payment or a specific credit score to qualify.
How to qualify
- Meet property or location requirements
- Satisfy credit and down payment requirements
Who they’re best for
Teachers with lower credit scores.
10. Conventional loan programs
Conventional loans are another option to consider. They typically have stricter minimum requirements than government-backed loans. You typically need at least a 620 credit score to qualify for a conventional loan.
How to qualify
- A minimum 3% down payment
- A 620 credit score or better
- A maximum 45% debt-to-income ratio
Who they’re best for
Teachers with good credit and a down payment who want more flexibility with home and location choice.
Pros and cons of teacher homebuying programs
Teacher homebuying programs can make it easier to become a homeowner, but it’s important to understand the limitations:
Pros
- Lower upfront costs: Homebuyer assistance programs can help with the down payment or closing costs, reducing how much cash you need upfront.
- Easier eligibility requirements: Teacher homebuyer programs may have lower credit score or down payment requirements, making it easier to qualify for a mortgage.
- Lower interest rates: Some programs offer interest rate discounts. Over time, the rate reduction can help you save thousands.
Cons
- Limited availability: Some programs are only available on select properties or in certain designated areas.
- Residency requirements: Most programs require you to commit to living in the purchased property for a specific period, such as three years. If you intend to sell before then, you may have to repay the assistance.
- Income limits: Some programs have income limitations, so you may not qualify.
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