Veterans, Law Enforcement, Teachers, Doctors, and Firefighters
Sometimes particular groups of people have unique loan needs. For example, doctors often have a higher debt to income ratio because of high student loan debt, and veterans might be receiving disability benefits. These special situations often require loans that are specific to their needs. Fortunately, there are many home loan programs designed to meet the particular needs of some of these groups, such as doctors, veterans, teachers, and first responders.
Good Neighbor Next Door
The Good Neighbor Next Door loan program is for civil servants, including teachers, firefighters, EMTs, and law enforcement officers. It provides a 50% price decrease on HUD-owned homes located in certain designated “revitalization areas.” These are regions with high foreclosure rates and a lower percentage of homeownership compared to national statistics. Applicants cannot currently own a home and must agree to live in their new home as a primary residence for the next three years. Check out some of the homes available through the program at HUDHomes.
Home Loans for Veterans
VA loans are loan programs created for people who have served in any of the four branches of the U.S. military. Veterans may qualify for VA loan if they have served on active duty, were honorably discharged after serving a minimum of 90 days during wartime, or at least 181 days continuously during peacetime. Some of the benefits of a VA loan include no down payment* and lower closing costs, competitive interest rate, and not having to pay mortgage insurance premiums. VA loans may be assumed by other qualified veterans.
Refinancing Options for Veterans
If you are a veteran with an existing VA home loan, and you need to reduce your monthly mortgage payments, an interest rate reduction refinance loan (IRRRL) might be a good option for you. Refinancing your current loan lets you replace it with a new loan with better terms, like a lower interest rate.
Home Loans for Doctors
With an average student loan debt of about $191,000, the highest initial debt among all college graduates, medical professionals typically have the highest debt-to-income ratio after graduation (according to an article by Priceonomics.com). That can make it extremely difficult to qualify for most home loans. Some of the benefits of a loan specifically for doctors is that it has less strict debt-to-income requirements and may have a higher maximum loan amount. Some physician loans have zero down payment options* and don’t require private mortgage insurance, perfect credit, or long job history.
If you are a doctor, teacher, veteran, or first responder and have been putting off buying a home or doing a refinance, for fear you might not qualify, give us a chance to see if we can find the right loan for your situation. You never know unless you try.
Note: Opinions expressed are solely my own and do not express the views of my employer. *Closing costs and fees may still apply. PRMI NMLS 3094. PRMI is an Equal Housing Lender. This is not a commitment to lend.