State Treasurer John Kennedy and Gov. Mike Foster offered money to certified public school teachers in Louisiana in a $10 million state initiative — but not in the form of a pay raise.
The State Treasury joined Fannie Mae and Hibernia National Bank to offer the $10 million Teacher HomeBuyer Program. The initiative began Jan. 22 and already the $10 million, which was offered on a first-come, first served basis, is gone.
The program offers flexible, low down payment, low interest rate mortgages for Louisiana teachers. The basic interest rate is 5.8 percent with reduced closing costs and appraisal fees. The low down payment requirements are $500 or 1 percent of the purchase price of the home, whichever amount is lower.
“We have developed a program that will help teachers stay in Louisiana without costing the state anything,” Kennedy said in a written statement. “By investing in the Louisiana Teachers HomeBuyer Program, the state invests in its future.”
Kennedy said the program is not a substitute for a pay raise, which he thinks the teachers need and deserve.
Gov. Foster said the initiative is an investment in the state’s teachers and communities, as well as the state. “Government ad education
leaders have been examining ways in which we can recruit and retain teachers in the state of Louisiana,” said Gov. Foster in a written statement. “Providing our state’s educators with affordable mortgage solutions encourages them to put down roots in the communities where they teach and strengthen the neighborhoods where they live.”
The requirements are that applicants be a certified Louisiana public school teacher or other full-time employees of the State of Louisiana in
public elementary or secondary education institutions that are teaching-certified. The loans can be given to single borrowers meeting these requirements or co borrowers where at least one of the two meets the requirements.
No income restrictions are put on the program.
The property must be a single family, primary residence according to the Teachers HomeBuyer Program brochure available online. The borrower must occupy the home being mortgaged.
The program is not limited to just houses. Manufactured homes, condos and planned-unit developments also are eligible. All residences, however, must be located in the state of Louisiana.
“This is the single best affordable home-loan program that I’ve seen in my 28 years of mortgage banking,” said president of Hibernia Mortgage Banking Paul Peters in a written statement. “There’s nothing like it in the
country.”
Prospective public school teachers have mixed emotions on the program.
Heidi D’Amico, an elementary education senior, felt the program would benefit older teachers over younger ones because the older teachers would
be more focused on purchasing a new home than recent college graduates.
Also, D’Amico said the state and teachers would benefit more from higher salaries.
“I don’t think it will help keep young graduates in the state when other states offer signing bonuses and higher salaries,” D’Amico said.
Elementary education junior Chrissy Sphar said the program could influence some students. But Sphar said she did not change her mind because she always has planned to teach out of state.
“I think it will help keep people in the state,” Sphar said. “Cane Fellowship recipients in the Holmes Program would find it a tremendous help because they sign up to stay in Louisiana for two years after they graduate
with their master’s.”
Dee Smith, an instructor in the College of Education and a former public school teacher in Virginia, said she thinks it would help a lot of her students stay in Louisiana. Sometimes, Smith said she has a high
concentration of married students and they would benefit.
“I think it would help recruit students because the latest statistics on the cost of living show that it’s more affordable to own a home in Baton Rouge,” Smith said. “I’ve had lots of student teachers that would have benefitted from that [program].”
Virginia Allen, an elementary education senior, said it is a good idea for the state and said the program would tempt her to stay in state because her family already is here.
“It is something to really think about for people that are in school,in state,” Allen said.