For South Carolina teachers: how a school-year salary, a new contract and student loans fit a mortgage

A word to educators first

Many teachers assume their pay schedule will count against them: the summer gap, the contract that renews each spring, the student loans from a master's degree. In most cases, these are well understood by lenders. What helps is knowing which rules apply to you, so you can bring the right papers the first time.

Are you eligible for the teacher programs?

When a Palmetto Heroes round is open, educators are one of its main groups. The 2026 list included classroom teachers, librarians, guidance counselors, school psychologists, speech-language pathologists and college professors.

The SC Department of Education's Teacher Housing Initiative adds a specific requirement: a teacher must hold a valid South Carolina educator certificate and must live and work full-time in South Carolina, or have a contract to begin teaching. A teacher still working on an out-of-state certificate transfer should sort that out before the round opens. Between rounds, SC Housing's year-round Homebuyer Program has no job requirement at all.

How lenders read a 10-month salary

Many South Carolina districts pay over the school year, while others spread pay over 12 months. Either way, a lender is looking for your annual salary.

Freddie Mac's Guide is the clearest on this point. For an annual salary paid over fewer than 12 months, the lender divides annual gross pay by 12. Its own example multiplies the monthly check by 10 and divides by 12. Here is how that looks:

The result is the same. The risk lies in an error going the other way: a loan officer who counts the larger 10-month check as if it came 12 times a year. That would overstate your income, and the file could fall apart in underwriting. We would encourage you to state your pay schedule clearly at the start. The equivalent rule for FHA, Fannie Mae, VA and USDA loans was not verified for this guide, so your lender confirms.

Your contract and a new job

Annually renewed contracts

Freddie Mac treats an annually renewable or term education contract as supporting continued income unless the lender knows otherwise. Bring your current contract and, if you have it, your letter of intent or contract for the next year.

Starting a new teaching job

New teachers, including graduates and those moving to South Carolina, have options:

• Fannie Mae accepts a fully signed, non-contingent offer or contract naming the position, pay and start date. Under one option, the start date can fall between 30 days before and 90 days after closing, on a one-unit primary home qualified on fixed base pay, with reserves to cover your costs until you start plus a month.
• Freddie Mac allows income starting up to 90 days after closing for a non-fluctuating salary, with funds verified to cover housing and debts until the start date plus a month.
• FHA has no offer-letter rule, but evidence that you were enrolled in school can satisfy its two-year work history for a new graduate.

Summer school, coaching and second jobs

Summer school is common extra income. Freddie Mac treats it as seasonal or secondary employment and gives an example in which a teacher's summer income with less than two years of history may be justified. Coaching stipends and tutoring are handled case by case. FHA wants two uninterrupted years for a part-time second job, and Fannie Mae recommends two years with 12 months possible. If you tutor on your own, see our self-employed buyer page.

Student loans: the three main rules

Few topics cause teachers more worry than student debt. The good news is that each agency publishes a rule, and the differences can be large:

Consider a teacher with $40,000 in loans on a $0 income-driven payment. Under FHA, the lender would count $200 a month. Under Fannie Mae, with proper documentation, it could count $0. On a loan where SC Housing caps your debt-to-income ratio at 45%, that difference can matter. Ask your lender to run the numbers under each loan type.

PSLF and public school employment

Under federal regulations, public schools are qualifying employers for Public Service Loan Forgiveness, and teachers who work at least 30 hours a week on a contract of at least eight months a year count as full-time. Remaining Direct Loan balances are forgiven after the equivalent of 120 qualifying payments. If you are close to forgiveness, a Freddie Mac loan may let your lender leave those loans out of your ratio.

Local help that names educators

Most local programs in South Carolina are open to anyone who meets income and price limits. One named educators directly: the Northside Development Group's program in Spartanburg listed teachers and Spartanburg District 7 employees, though its funds were unavailable when we last checked. FHLBank Atlanta's Community Partners Product, offered through member lenders, includes current and retired educators at or below 80% of area median income.

What to bring to your first lender meeting

1. Your current teaching contract and any contract for next year.
2. Recent pay stubs and two years of W-2s.
3. Your South Carolina educator certificate.
4. A statement for each student loan showing the balance and current payment, plus any PSLF records.
5. Records of summer school or other extra pay.

With these in hand, a lender can give you a reliable answer quickly. To be matched with one, please check your eligibility.

Further questions