Career-Specific Mortgage Programs Worth Exploring
The COVID-19 pandemic has impacted the lives of many, especially first responders, healthcare workers and teachers. If you work in any of these jobs, thank you for everything you do to keep our communities safe, healthy and educated. This blog is intended to share information about a program and some home-buying incentives designed to help you land your dream home.
Rock Steady During Unstable Times
First responders, medical professionals and teachers often enter the job market with little or no savings. Doctors and teachers might also be carrying burdensome student loan debt. Further, first responders and teachers earn far less than they deserve. On a traditional loan application, these concerns could lead to an applicant, such as yourself, being deemed “high-risk.” Don’t be discouraged. Lenders favor buyers like you with institutional jobs because, as it turns out, people in your positions tend to have a smaller chance of being laid off or fired.
This is why lenders and non-profits run special home buying programs, offering you benefits that could entice you away from standard mortgages. Of them, the HUD Good Neighbor Program is probably the most well-known. It provides discounts for teachers, law enforcement, EMTs and firefighters when they purchase a HUD designated property. Notably, it allows you to buy the home at 50 percent off its appraised value. One qualification for the program, however, is that you must commit to living in the property for 36 months as your sole residence. If you plan to move within the next three years, this option might not be for you.
Additionally, as you begin your home search, you might consider looking into grants and tax credits from your city and state governments. Your union might also provide assistance or have a relationship with an institution that can.
A Note for Teachers
Teachers check off all three of the above-mentioned high-risk boxes, which might be why there are more home buying incentives available to them. If your classroom recently became your living room, and you would now rather own than rent, some private lenders might be able to help by offering you discounted closing costs. Likewise, credit unions for teachers could allow you to make very low down payments without it affecting your interest rate.
Take Your Time, Weigh Your Options
It’s always important to do your research when looking for a mortgage. Don’t automatically assume that because these programs are designed for professionals in your industry, that there aren’t better deals out there—be sure to compare these programs to traditional mortgages when you start shopping. Don’t forget to check your state, county, and city government websites in addition to your union websites as well. The more informed you are, the more likely you’ll find the ideal mortgage for your dream home.
We at Open Mortgage are grateful for your efforts during these difficult times. That’s why we are always available to discuss your home-financing options when you’re ready. By visiting OpenMortgage.com today, you can learn more about our services and even start talking with home-financing professionals.