Firefighter Mortgage Programs Worth Considering

For most of us, buying a new property or refinancing a home is the biggest financial transaction of our life.  It doesn’t need to be the most complicated, one. For a successful mortgage transaction, many factors need to come together. 

One needs to have a basic understanding of who is involved, what to expect so the process of home buying is more clear. Depending upon the state where the property is located.one can seek assistance. 

There are a few things to determine your qualification for the mortgage  – the need for income, a favorable credit history, and a (minimum) down payment to qualify for a home loan. 

To be prepared for the mortgage you would require to have these documents ready –

• Current Pay Stubs (Most recent 30 Days worth of paystubs)
• Last 2 Years W-2s and/or 1099’s if applicable
• Tax Returns For The Past Two Years – Including All Schedules With Any Associated W-2s, K-1s, Or 1099s
• Bank Statements For The Past Two Months – All Pages
• Investment Account Statements For The Past Two Months – All Numbered Pages
• Retirement Account Statements For The Past Two Months – All Numbered Pages
• Copy of Driver’s License For All Loan Applicants
• Credit Card Information For Appraisal Order
• Executed Purchase Contract (For Purchase Transactions) 

The Mortgage Report has identified 10 home loans some specifically for firefighters some for the general population –

1. Good Neighbor Next Door (GNND) is the best of all the other mortgage programs because they offer you a half-price home. The conditions being

• Provided you are a paid firefighter and not a volunteer one
• You live in the house for 3 years
• Options however are limited may be economically challenged area.

Though restrictive they are workable. 

2. Firefighter Next Door (FND) though it does not offer the GNND price discount. But instead offers a  broad scope of other advantageous benefits to paid and volunteer firefighters and also to EMTs and support staff. And the best part is you can buy any home at any place and not only those listed by HUD. Neither does it impose any minimum requirement. Their benefits are –

1. In certain areas home buying grants between $1,000-    $4,170, or up to $6,000 is offered
2. Down payment assistance of up to $10,681
3. No application fee or broker fees
4. Free appraisal (cash grant of $545 on closing)
5. Discounted title fees
6. A streamlined refinance process 

Fresh Start is an add-on to the main FND program. It helps those who have low credit scores and unable to qualify for a mortgage. 

3. Homes for Heroes (HFH) says its qualifying heroes include current and former firefighters, paramedics, and EMTs. This program helps the heroes to save on an average of $2,400 when they buy or sell a home. Fees charged by the real estate agents, mortgage providers, home inspectors, and Title specialists are also saved because those savings which come in the form of a single check come from discounts from property professionals who are participants in the HFH program. You can also save and earn about a 25% discount on gross commission when you are selling through a participating agent.

4. Neighborhood LIFT  is not only exclusively for firefighters or even first responders but also for police officers and veterans and might help volunteer firefighters. Though the actual amount varies depending on the housing market where you live, down payment assistance grants can total up to $15,000 for most recipients. However, if you are a volunteer firefighter who is getting high pay from your main job then you would not qualify for this program because it is intended to help those with moderate income.

5. Firefighter mortgage programs from credit unions there are more than 100 firefighter credit unions with 800,000 members across North America these credit unions can be an excellent choice for low rates, or for the chance to work one-on-one with a local mortgage professional who can guide you through qualifying and applying for a mortgage. Credit unions offer their members mortgages and many are likely to offer attractive deals, especially to first-time buyers.

6. Down payment assistance programs (DPAs) Over 2000 DPAs are across the United States and each DPA has its own eligibility criteria and its own form of helps you would require to find one that is available in the place where you wish to buy you home. You could receive a grant (non-repayable gift) of several thousand dollars and that money could come as a loan, with a very low-interest rate, that you need to repay along with your mortgage.  Other programs provide interest-free loans that you repay only when you move or refinance or stayed in the same house for some number of years.

7. Local firefighter mortgage programs many states, counties, and cities run special homeownership programs for firefighters, law enforcement officers, teachers, and other public employees. These may offer preferential mortgage rates and assistance with down payment and closing costs. Some are limited to first-time buyers or career firefighters.

8. VA loans If you have served in the military prior to becoming a firefighter the VA is another loan that entitles you easier credit requirements, lowest rates, zero down payments, and no continuing mortgage insurance.

9. USDA loan Though not specified for firefighters USDA loan is backed by US department of agriculture stimulates growth in rural areas so if you are selecting a rural or suburban area (97% of the US map is eligible) to stay then this program also doesn’t require any down payments, they offer reduced mortgage insurance payments and very competitive rates.

10. FHA and low-down-payment are again some of the common mortgage plans for the general population which you as a firefighter can also avail. Conventional loans these If you have reasonably good credit then these are 2 popular mortgages. With a conventional loan, you can make a down payment of just 3%. And you can escape mortgage insurance payments earlier. FHA loans require a 3.5% down payment but are available to those with lower credit — starting at just 580. Be aware that both these loans come with mortgage insurance requirements. And the FHA ones come with more burdensome rules over those. 

There are plenty of mortgage options that are professional and some which are not, so make sure you explore both the firefighter mortgages and standard mortgages program so you are getting the best deal overall. 

Compare mortgage quotes, fees, and special savings.