New teacher-focused mortgage lender launched
Landed Home Lending aims to make it easier for teachers to find and secure affordable mortgages.
National mortgage originator NewRez has announced a new venture called Landed Home Lending that will help teachers and education professionals buy homes.
NewRez’s joint venture lending business division Shelter Mortgage Company will team up with Landed, a San Francisco shared equity down payment and homebuyer education provider, to offer educational resources in financing and homebuying, as well as assistance in accessing the available options for purchasing a home. The venture will also create a centralized platform for loan origination and servicing, which would make it easier for borrowers to apply for and manage their mortgages.
“We are excited about taking the next step in this partnership with NewRez, backed by Shelter Mortgage’s 30 years of industry experience to further help essential professionals build financial security through homeownership,” said Jesse Vaughan, Co-Founder of Landed, in the announcement. “With this launch, we are now able to provide additional customized and accessible solutions designed to make the dream of homeownership a reality for these critical members of our community who uphold us every day.”
No information on specific loan packages has been released as of the publication of this article. The venture is expected to be a nationwide lender, like its partner company NewRez.
The homebuying challenge for teachers
Many teachers and school employees are underpaid when one considers the level of education and experience required to manage a classroom. While public school teacher pay can range from as high as $84,227 on average for New York state teachers as of 2017-2018, it can also be as low as $44,926 — the state average for Mississippi in 2017-2018.
Per an analysis from the Economic Policy Institute, no state pays teachers a salary that is compensatory to comparable college graduates. On average, a teacher makes 77% of what a non-teaching college graduate would make.
In states where teachers are underpaid, it can be difficult — if not impossible — to afford a down payment. There are a number of public and private resources available for teachers that need down payment assistance. Among these is the Teacher Next Door Teacher Housing Grant, which offers grants up to $6,000, depending on the applying teacher’s home state. Additionally, the grant offers down payment assistance up to $10,681.
The US Department of Housing and Urban Development’s Good Neighbor Next Door Program offers discounts of up to 50% of the list price of a home. The home must be in a revitalization area and the teacher must work full-time in a state-accredited public or private school. The homes are selected by the program’s sponsor, Teacher Next Door, and are made available to bid on for a short time period. Bids from multiple teachers are settled by lottery.
For California teachers, the Extra Credit Teacher Home Purchasing Program offers deferred home loans between $77,500 and $15,000 that can be combined with an eligible California Housing Finance Agency’s first mortgage loan.
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