Salute! Mortgage Financing Options for First Responders & Police Officers

Every first responder and police officer during the current pandemic is a hometown hero. Did you know that there are mortgage loan programs for first responders?

Although there are many government, state, and local homeownership benefits available for you to consider, please note, state and local programs can vary by location. So be sure to carefully review your state and local municipality websites to fully understand which options are available to you as a first responder or police officer.

HUD Good Neighbor Next Door
Both law enforcement professionals and first responders have the opportunity to participate in the U.S. Department Housing and Urban Development’s (HUD’s) Good Neighbor Next Door program. This program helps public servants purchase homes in revitalizing neighborhoods. Through the Good Neighbor Next Door program, you can buy a HUD home for 50% of the appraised value when the house is located in a specified area. Properties are available for purchase through the program for seven days. Bear in mind that you must meet the requirements for a law enforcement officer or first responder and comply with HUD’s regulations for the program.

VA Mortgage Program
Looking for law enforcement home buying programs? Police officers and first responders that have served in the military are eligible for Veteran Affairs (VA) loans. These loans do not demand a down payment and, unlike the FHA loans, borrowers don’t have to pay for mortgage insurance. VA loans can provide incredible value. No down payment and no mortgage insurance requirements make VA loans one of the most attractive programs in the mortgage lending industry. The loan is government guaranteed so rates tend to be lower than what’s typically available for other mortgage programs. More importantly, it’s available to veterans, active-duty military members, and qualified spouses. To be eligible, you (or your spouse) must have served 181 days during peacetime, 90 consecutive days during wartime, or 6 years in the National Guard or Reserves. Be sure to double-check with a licensed mortgage expert to see if you qualify.

Down Payment Assistance
Down payment assistance programs are generally offered at the local level. The most are exclusively available in certain cities or counties in designated development zones, but there are some available at the state level. Make sure to do your research since not all mortgage lenders may participate in these programs.

FHA Mortgage Program
Federal Housing Administration (FHA) loans are government-insured and easy to qualify for. They’re especially popular among first-time homebuyers because of the flexible down payment and credit score requirements. Buying a home with an FHA loan allows you to pay a low down payment amount of 3.5%. Applicants generally must have a minimum FICO score of 580 to qualify.*

Down payment and credit score aside, there are a multitude of requirements. These can range from providing reliable income verification paperwork to being required to pay for monthly mortgage insurance. Don’t let these small hurdles discourage you and make sure to speak with a trusted mortgage broker to get the full picture.

*FHA credit score requirements are subject to change. As a result of COVID-19, mortgage investors are unable to support as many loan options; meaning that the underwriting guidelines for government mortgage loans are becoming stricter.

Our public service workers ought to be commended and awarded for their vital contributions. That’s why the mortgage process should be made easy for first responders and police officers.

Ready to see if you qualify for a law enforcement mortgage discount or a special home loan program? Schedule an appointment with a MortgageDepot mortgage loan consultant to see what options are available.