If you are a teacher (or you know a teacher) you may be interested to learn that full- and part-time teachers (grades K through 12) looking to purchase either a home or condominium as their primary residence may be eligible for some pretty sweet deals.

Not all lenders have preferential programs for teachers, and teachers may need to do the “Sherlock Holmes thing” to find special deals. However, here’s a preview of some of the benefits teachers may find at the end of their search.

First, teachers may expect to get at or close to 100% financing for their home purchase, credit scores permitting. Better credit scores mean they can carry more debt while still getting a mortgage approval. However, as with most mortgages, excess debt will limit their mortgage amount.

In some cases, a teacher may be able to get a mortgage without even having a credit history. In such cases, lenders will use “alternative documentation” such as a good rental history and utility or cell phone bills to form the basis of the mortgage approval.

Making “too much” income is usually not a factor for most teachers as income limits are often waived. Also, they may often be allowed to have their sellers pick up a chuck of their closing costs, usually up to 3% or so of the purchase price. Perhaps most notably, teachers may not be required to sit through a full Saturday’s worth of otherwise mandatory “homebuyer’s education”.

Mortgage incentives for teachers rarely apply to investment properties, and only sometimes apply for refinances. However, discounts, specials, and promotions are most certainly worth asking about if you are a teacher with a pending mortgage transaction.

Timothy Phillips is a mortgage banker and newspaper columnist.  Homebuyers should always consult a professional for guidance specific to their situation.

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