How Do I Choose the Best Teacher's Mortgage?

Educators are often entitled to certain benefits and perks because of the benevolent nature of the business these professionals choose. Buying a home is not excluded, and there are programs and incentives that support a teacher's mortgage. Although there might not be a specific teacher's mortgage tailored just for education professionals, there are certain advantages reserved for the public sector extending beyond teachers to include police officers, firefighters and others. You can choose the best teacher's mortgage by looking for offers that will allow you to purchase a home with a down payment or with the lowest interest possible.

Teachers are not known for earning high salaries, especially in the initial years of a career before tenure or some guarantee of employment is attained. Subsequently, it can be difficult for a teaching professional to afford mortgage payment let alone afford a hefty down payment or establish a credit history. Look for incentives tied to a teacher's mortgage that can help either reduce or eliminate the cash needed upfront to buy a home.

Some lenders will issue a loan requiring little or no money down for public workers, including teachers. This is a generous incentive because home buyers often must commit to putting down as much as 20 percent of the value of the home. Although putting no money down does not take any value off the home's total price, it makes obtaining a teacher's mortgage more accessible and opens the door for a young professional to begin establishing a credit history.

In the event you have no credit yet, there are other incentives designed for teachers. For instance, instead of providing an extensive credit history showing your ability to pay bills, you might need to prove only that you have had a place of residence over a 12-month period in which rent was paid. This perk might help younger educators to obtain a mortgage and build credit early in their career.

Buying a home usually leaves the borrower vulnerable to changing interest rates unless a low rate is locked in from the onset. A teachers' mortgage program might include a lower interest rate than the average borrower will receive. If you are looking to save money over the long term versus upfront, this could be the mortgage design to choose.

Restrictions might apply to a teacher's mortgage program. The lender might be promoting home ownership in a community, and consequently, you might be limited to use the property for home ownership and not for any other purposes, such as to generate a rental income or as a vacation home. Before selecting a lender, make sure that the loan will be appropriate for the property being purchased.