Seattle Moves to help teachers buy homes

Seattle Times reports:

With the increase in Seattle housing prices far outrunning teacher raises, the city yesterday announced it will sweeten a program that helps teachers buy homes.

Mayor Greg Nickels said the city would spend $1.8 million to enhance a program that provides up to $45,000 in low-interest loans to each teacher. The money comes from the city's housing levy.

The plan announced yesterday would mean teachers don't have to begin repaying the loans until after 30 years, much longer than the current eight years.

Seattle's starting teacher salary is $30,000, and the median price for houses and condos sold last month was $383,000.

That means, through conventional financing, it would take more than three beginning-teacher salaries to qualify for the Seattle median-priced home, according to Bankrate.com.

Jeff Caden, executive director of the nonprofit Washington Homeownership Center, said there are many programs to help teachers, other public employees, and low- and middle-income people afford housing.

If you aren't in the politically connected group you are out of luck.