Loan and Housing Assistance

While having the opportunity to change students’ lives is one of the largest rewards of the profession, there are other tangible rewards designed especially for our educators. Please explore these special home loans, student loan cancellation programs and programs for our former military members.

Home Loans Especially for Teachers
Bank of America offers two mortgage programs to enable teachers to become homeowners.
Teacher Flex ™ is a program for school teachers, school administrators and librarians who lack established credit history. The program features:
•No established credit necessary.
•Low up-front costs.
•Only one month’s cash reserve needed.
•TeacherFlex ™ is available in all 50 states.

Teacher Zero Down ™ from Bank of America is for school teachers, school administrators and librarians who have a good established credit history but lack the funds to make a down payment. The program features:
•100% financing. If you have good credit, you pay no down payment.
•Little or no up-front costs. 100% of your financing costs can come from a gift or other sources.
•Lower income requirements.
•Only two month’s cash reserve needed.
•Teacher Zero Down™ is available in Tennessee and Arkansas.

click here for more information.


HUD Teacher Next Door (TND) Program
The U.S. Department of Housing and Urban Development wants to make American communities stronger. The Teacher Next Door Program is designed to further this goal by encouraging teachers to buy homes in low and moderate-income neighborhoods. Benefits include:
•Teachers can purchase HUD homes at 50% off the list price in designated areas
•Down payments may be reduced to as little as $100 for homes purchased with
   an FHA-insured mortgage
•HUD’s 203(k) loan program is designed to help educators purchase and rehabilitate their home

For more information about who can participate, benefits and stipulations, click here
or call 1-800-217-6970.

Loan Deferments and Cancellations
Federal Perkins Loans can be cancelled up to 100%, for a maximum of $30,000 if:
•You have a Perkins/NDSL loan made on or after July 1, 1987 and are a full-time teacher
   in a designated elementary or secondary school that serves low-income students
•You have a Perkins/NDSL loan made on or after July 23, 1992 and are a full-time
   teacher of math, science, foreign language, bilingual education, or in another field
   designated as a teacher shortage area; or
•You have a Perkins/NDSL loan made on or after July 1, 1987 and are teaching
   disabled students in a public elementary or secondary school
All three categories of teacher cancellation have been extended to borrowers with Perkins loans prior to July 23, 1992 for teaching service performed after October 7, 1998.

Full details and cancellation schedule can be found here.

Stafford Loans, Direct Subsidized and Unsubsidized Loans made to new borrowers after 10/7/1998 and to the portions of a Consolidation Loan derived from these loans can be canceled up to $5,000 if:
•You are teaching in a low-income school and you are a "new borrower" after October 1, 1998.
   (A new borrower is one who received his/her first Stafford Loan on or after October 7, 1998,
   or had no remaining balance on Stafford Loans made prior to 10/7/1998 on the date the
   new loan was made.); and
•You work as a full-time teacher for five (5) consecutive years in an elementary or secondary
   school that has been designated as a "low-income" school.

Low-income elementary and secondary schools are designated by the Department of Education each year, and a list of these schools, organized by year, is posted on their website. Click here to see this list and other stipulations.

Troops to Teachers
Troops to Teachers aids former military personnel interested in becoming teachers. The Department of Defense and the Department of Education provide financial support to participants who receive either a stipend of up to $5,000 to pay for certification costs or a bonus of $10,000 if he or she teaches full-time in a high need public school for at least three years.

For eligibility requirements and more information about Troops to Teachers, click here.

All information is subject to changes made by the agency administering the program. Please confirm information with the agency using the website or phone numbers provided. These programs are not affiliated with Memphis City Schools.