Teacher Home Loan Program

A new home loan program can help make the dream of home ownership a reality for Texas teachers.

The Teacher Home Loan program, issued through the Texas State Affordable Housing Corporation (TSAHC), offers eligible teachers an affordable fixed rate mortgage, currently 7.21 percent, plus a grant for down payment assistance equal to 5.5 percent of their approved mortgage loan amount.

House Bill 3451, passed by the Texas Legislature in 2001, allocated $25 million of the State's Ceiling for Private Activity Bond Cap for the loans to teachers. The program is now available statewide on a first-come, first-served basis, to first-time homebuyers who wish to purchase a newly constructed or existing home with a 30-year fixed rate mortgage loan.

To be eligible, a teacher must:

• not have had an ownership interest in any principal residence during the last three years;
• be a classroom teacher (as defined by Section 5.001 of the Education Code) employed by a public school district and have been working as a teacher for the three-year period preceding the application date;
• have been residing in Texas for the five-year period preceding the date she/he files an application for a mortgage loan;
• meet the income and purchase price eligibility limits for the program;
• meet standard mortgage underwriting requirements which demonstrate credit worthiness; and
• must occupy the purchased home as their primary residence.

Teachers must contact a participating lender directly to complete the application process. The list of participating lenders is available at http://www.tsahc.org/. For more information, contact David Long at the TSAHC toll free at (888) 638-3555 or (512) 377-3555, ext. 402.