We all know that educators get the short end of the stick in terms of both hours worked and compensation. This makes it very difficult and frustrating to save up for large life purchases like cars or real estate. However, owning your own property and building equity in it is one of the best ways for people to build their own net worth. Our resident teacher turned broker, Emily Baker, took this issue to heart and wanted to make purchasing housing a much more plausible reality for teachers. Through her program, Equity for Educators, she hopes to provide the extra financial boost a fellow educator may need to purchase a home.
Statistics show that today renting a home costs up to 30% of a median household income, while owning costs just 15%.
This kind of annual savings could be huge for teachers, but the monthly payments are not often the problem they face. Rather, it is the daunting task of saving up for a down payment and closing costs on a home.
This is where Equity for Educators steps in. This program strives to , help teachers pay these larger up front costs, such as closing costs, which are an additional expense on top of a down payment. For buyers, the program will pay 15% of closing costs on a home. In addition, if you want to sell your property in order to upgrade to your dream home, as an educator, you will be charged a competitive commission of 2% to handle the listing side of the agreement.*
Coupled with this, there are numerous minimum down payment loans available to buyers. Both FHA and Conventional loans can be obtained for as little as 3%-3.5% down for first time home buyers. This means that on a $200,000 home you might only need to bring $6000 to the table for a down payment. Furthermore, these down payments can be gifted to you by a friend, family, or down payment assistance program, On top of that, with Emily helping you out with your closing costs, buying your first piece of real estate is a much more achievable goal.
*This does not include the 2.8% commission to the Buyer’s Agent