Mortgage Programs
Police officers, firefighters, EMTs, and teachers work to protect us and teach us so we can accomplish our dreams. So, it is only fair that these civil servants have the same opportunity to achieve their own American dream of buying a home.
Unfortunately, even though these public servants are working tirelessly in essential roles, they often have a difficult time purchasing property. Too often, it’s just out of reach financially, especially in coastal communities like Emerald Isle, NC.
The good news is that thanks to a range of public and governmental programs, these public servants have more opportunities than ever to buy a house at affordable rates and through a simplified process. There are options for tax breaks, down payment help, subsidized mortgage interest, and reduced closing costs. It’s all about making homes for heroes a realistic venture. Let’s talk about what’s available!
Mortgage Loan Assistance
There are many different private home loans for teachers, health care professionals, and rescue workers, and law enforcement personnel. These loans typically offer the lowest mortgage rates possible—though it’s still important to shop lenders to find the best deal.
One such program is Freddie Mac’s Home Possible Program, which offers first responder home loans that finance up to 100% of the purchase price. There are also similar programs offered through Fannie Mae and many other private banks. We recommend checking with lenders in your area.
Mortgage Credit
Beyond lower interest rates and financing 100% of your home, the IRS offers Mortgage Credit Certificates (MCCs) to help make homes easier to purchase. This credit differs from state to state but can enable teachers, police, firefighters, and EMTs to buy a more expensive house with the same income.
An MCC allows you to deduct your mortgage interest and gives you credit against tax liabilities. This means that your lender will subtract the credit from your house payment when calculating your debt-to-income ratio so that you can get a larger loan. For example, let’s say you get a 20% MCC and you paid $15k in interest over the last year. That’s a credit of $3k per year, or $250 per month. That means that you can afford a home loan that’s $250 per month more expensive than otherwise.
Teacher Next Door’s First Time Buyer Program
This program was designed to increase home ownership for specific public servants and to streamline the home buying process.Home loans for teachers, firefighters, EMTs, and police officers are available through the Teacher Next Door’s First Time Buyer Program. This program includes: $0 in application fees; up-front pre-approval; low down payment options; down payment assistance; closing costs grants; home loan assistance.
HUD Good Neighbor Next Door Program
Finally, there’s the Good Neighbor Next Door program offered by the U.S. Department of Housing and Urban Development (HUD). This program provides full-time firefighters, law enforcement professionals, teachers, and EMTs homes at 50% of their value. That means you pay monthly mortgage payments on just $150,000 for a $300,000 house ($850 versus $1600 per month). This program has several stipulations. Buyers must live in the property for at least three years. The property must be located in a HUD designated area. such as a Revitalization Area.
All of these programs are subject to availability and each program has its unique qualifications and applications. Given all the effort, why would a civil servant want to relocate to Emerald Isle? Well, it is like a real life DisneyLand. Plus, you live where everyone vacations. How cool is that? When you are considering a move to Emerald Isle, why not contact me by voice or text at 919-308-2292 or send me an email to: DRaczkowski@fathomrealty.com and I'll send you a chapter from my book, "Live Where You Vacation."
Comments