Home Loans For Law Enforcement
Last Updated on May 28, 2021 by Maggie Sutton
Police officers have an extremely difficult job serving their communities. So, when it comes to buying a house, getting a home loan should be easy. Thankfully, there are a number of great home loan options available specifically for law enforcement officials, as well as down payment assistance. Lets take a look at some of the most common types of home loans for law enforcement to buy a home, and how Homes for Heroes can help.
Why Pensions Are Bad For Cops
Ask a police officer how long he or she plans to keep working in law enforcement and youll get a unique answer.
This answer wont be the common private sector response, oh, maybe when another career opportunity presents itself. It wont be when the officers financial planner says she has reached financial independence. It wont be the date his last kid graduates college. It wont even be the date the officer can afford to purchase a condo by Lake Mead, pay off his mortgage debt, and retire. And it will rarely be, for as long as I still enjoy doing the work.
In cop speak, it will be, when my pension says I can retire.
In plain speak, that translates to, Ive had enough, and I would quit and do something else if I wasnt financially stuck here.
If you want to see improvements made in the law enforcement profession and its working conditions, dont underestimate the impact of that statement. It answers why certain police processes never seem to change or improve. The prevalence of defined-benefit pensions in law enforcement significantly changes how officers go about their daily work, sometimes for the better and sometimes for the worse.
This wont be a short article, but if you want to improve the working conditions for law enforcement officers, I believe that my recommendation of replacing defined-benefit pensions with the new model offered by the Jacksonville, Florida Sheriffs Office is the right starting point.
Home Loans For First Responders Faqs
Do first responders get discounts on buying a house?
First responders may be able to save money when buying a home via programs such HUDs Good Neighbor Next Door option, which enables them to buy certain houses at 50% less than their list price. Some lenders may offer programs that cover closing costs for local firefighters, law enforcement officers, healthcare workers, EMTs, and teachers.You can also potentially save by working with the Homes for Heroes organization, which connects first responders with mortgage industry affiliates to help them secure discounts when making a home purchase.
Do police officers get help with mortgages?
Police officers may be able to buy homes through the Good Neighbor Next Door program, or through local lender programs designed to help first responders afford a home. There are no national loan products specifically created for police officers, but there are a number of assistance programs that can put homeownership within reach.
Who qualifies for the Good Neighbor Next Door program?
The Good Neighbor Next Door program is open to law enforcement officers, firefighters, full-time K-12 teachers, and EMTs.
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Find Out Current Best Rates
In assessing your requirements, we do not use credit scoring and we can provide an accurate estimate of the amount of borrowing and the viability of your requirements, without effecting your credit score.
We avoid credit searches at the initial stages given that numerous credit searches will impact your ability to access cheap credit. It is clear that too many credit applications in a short period of time will impact your score and whilst it is important to shop around, formal applications for a mortgage can trigger rejections, as it gives the impression you may be desperate for credit. It is essential when making enquiries for any financial product, that the Company does not credit score you, until such time as you have agreed to make a formal application.
We can indicate your chances of approval prior to any application being made and where necessary, can obtain decisions in principle from lenders who do not use credit scoring.
Clients we assist tell us from the outset, they would like a guarantee of the amount they can borrow and our knowledge of specific underwriting policies within lenders, allows us to accurately estimate, exactly what is available.
Importantly an initial discussion and agreement through us, does not impact your credit score
Weâre not tied to one lender so you can be sure weâll get the best deal for you, from the bank or building society right for you.
We seek to ensure the best possible results for those who choose to use us.
Getting A Police Mortgage With Bad Credit
We are often asked how a history of poor credit can affect a mortgage application. It is highly recommended that you do what you can to repair your credit score prior to making a mortgage application, although we do understand this is not always possible.
The lenders primary concern is that you can make the repayments on your mortgage every month for this reason, they will make a thorough check on your credit history and look at your income and outgoings to ascertain affordability.
As your mortgage advisor, we recommend that you speak candidly with us from the outset regarding your credit status. We can work with you, finding lenders who specialise in this area of the mortgage market. They will be willing to discuss your credit status with you and offer mortgage deals that are suitable for your situation.
For more information regarding bad credit mortgages, we have a range of articles available on our website.
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How Does My Income Affect My Ability To Get A Police Mortgage
Most police mortgage providers will look at your income very closely to work out whether theyll lend to you.
The amount of income you earn as well as the source of your income, will be assessed to determine whether you are an ideal borrower.
As a member of the police force, your income is most likely paid as a salary rather than on a self-employed basis.
There are lenders who prefer this as it suggests some level of financial security.
Loaning large amounts of money is risky for lenders, so knowing that you have a secured income can provide mortgage lenders with confidence in your ability to pay your mortgage on time and in full.
However, its also useful to know that even if your income is paid on a self-employed basis, there may be lenders willing to offer a self-employed mortgage, depending on your circumstances.
Mortgages For Trainee Police Officers
Trainee police officers get paid during their 12 week training, you should be able to secure a mortgage while you are training and potentially before you even start your new job role. This might already be a busy and stressful time for you.
An alternative mortgage option would be to apply for a mortgage in principle. This is a written agreement from the bank that they would be willing to lend you a particular amount at a specific loan to value, provided you pass the rest of the checks at a later date. This allows you to start house hunting with a budget in mind.
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Government Programs Are Available
Several government programs are available to assist government employees and law enforcement officials. Unfortunately, some of these programs arent very friendly to lower credit scores. They also may require you to pay a chunk of money for closing costs and down payments.
Government-backed loans can help borrowers who have decent credit ratings get access to loans that have lower down payment costs. All of this is possible while posing less of a risk to the lenders who provide the initial payment for the home.
Introducing Yescando Money A Free Online Mortgage Broker
YesCanDo Money is one of the UKs leading FREE mortgage brokerages, covering the whole of the UK. They offer free online advice, information and guidance to get achieve the correct mortgages for police officers, as well as telephone, video calls and face to face appointments.
Started over 30 years ago YesCanDo Money has helped achieve hundreds of police mortgages whilst providing information and advice for their police officer mortgage. They have a modern approach to communication using Whatsapp as well as more traditional email and of course the phone.
YesCanDo thrives on being a caring family run business who have grown by giving exceptional service to their clients. This can be confirmed by reading the hundreds of Facebook and Google 5 Star reviews! Contact us for information, advice and free support on how to achieve your home, the best rates and the mortgage application process.
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The Benefits Of Simplified Issue Life Insurance When You Are A Cop
If you a police officer with a medical issue like diabetes or are in a REAL high-risk profession you may want to check out simplified issue term life insurance instead of traditionally underwritten coverage.
You dont have to undergo a physical exam. You are asked a battery of questions to determine if you qualify for better rates. Its quick and easy and surprisingly affordable.
If you have serious medical problems and think youll be denied coverage, then you need to speak with an independent high-risk insurance broker to confirm that thats the case. If so, you may be better off to stick with topping up your existing group coverage.
Keep in mind, most consumers overestimate the severity of their health issue when it comes to applying for life insurance. I find the majority of the time, clients are healthier than they realize. So its very important to double-check. After all, it could mean saving a lot of money.
NOTE* If you have a moderate to serious health condition, you may qualify for up to $500,000 of simplified issue term life insurance with Canada Protection Plan, one of the top non-medical providers in the country.
Usda Home Loans For Police Officers
For police officers looking to buy a home in a more rural area, consider a USDA home loan. These loans do not actually have anything to do with agriculture, but rather with development of rural areas. The USDA designates a rural area as somewhere with 35,000 residents or less. Because of the generous population stipulation, much of the United States actually falls into this category, including metropolitan suburbs. USDA loans have strict eligibility requirements, including household limits on income. You must meet all the requirements of USDA loans in order to secure one.
Like with several other government-backed loans, there are tons of advantages to USDA loans. You might be able to have a zero-money down payment with USDA loans. But, depending on your credit score, you may need to pay up to 10% for a down payment. This is still considerably less than a 20% down payment on a conventional loan. There technically is not a minimal credit score requirement, but police officers who have a score of 640 or higher have a better chance of obtaining one of these loans. USDA loans have competitive interest rates and are usually fixed-rate in 15 or 30 year terms.
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Our Mortgage Broker Services Doesnt Stop There
Your mortgage advisor understands that the mortgage application and discussing your mortgage options is just one aspect of buying or remortgaging a property.
We can advise on Solicitors, help you understand survey reports you may have consider, provide you with background information on the property you are considering buying, and liaise with any estate agency or builder involved.
We can advise and arrange Life Insurance, Critical Illness Cover or Income Protection, again offering the best possible deal available to you.
Hud Good Neighbor Next Door
Both law enforcement professionals and first responders have the opportunity to participate in the U.S. Department of Housing and Urban Development’s Good Neighbor Next Door program. This program helps public servants purchase homes in revitalizing neighborhoods.
You can buy a HUD home for 50% of the appraised value when the house is located in a specified area through the Good Neighbor Next Door program. Properties are available for purchase through the program for seven days.
Check the listings for your state to see what’s available. Follow the instructions to submit your interest in purchasing a specific home. If multiple people submit an offer on a single home, a selection will be made randomly via lottery. You must meet the requirements for a law enforcement officer or first responder and comply with HUD’s regulations for the program.
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An Individual Life Insurance Policy Is More Portable
The first issue is portability. If you have police officer insurance benefits through the OPP, TPS or the RCMP, its attached to the job. This means if you quit, your coverage terminates.
If youve developed any health issues while youre a police officer, you could become uninsurable outside of your group plan.
For example, lets say youre a 45 year old constable and decide to quit the force. You have high blood pressure and depression and want to pursue a job thats not as taxing. Perhaps you even want to start your own business.
Once you leave the police service your benefits are gone and now you have to apply for coverage. Your age and medical condition make protection extortionately expensive and in fact, the depression may even disqualify you from traditional coverage depending on the circumstances.
Ugh. Thats why having your own coverage helps. If you apply while youre young and healthy life insurance is way more affordable.
Mortgages For First Responders: Why It Matters
Homeownership is correlated with a number of benefits, including decreased doctor visits and better health outcomes than those for non-homeowners, according to Habitat for Humanity. It also nurtures greater civic and volunteer participation, both of which can help people feel connected to others, a key component of mental well-being.
Then theres the sense of ownership and stability that comes with knowing a place is your own. Home is a sanctuary, a place to recharge and heal after the rigors of the day. Stability can be essential for coping with mental health challenges, which are pronounced among first responders.
Kaiser Permanente reported that depression and post-traumatic stress disorder are five times more common among first responders than the general population. Firefighters and law enforcement officers have an increased risk of suicide, and more than 140 police officers died by suicide in the first three months of 2021, according to the National Alliance on Mental Illness . Another troubling number from Kaiser Permanente: 85% of first responders surveyed experienced some mental health issues.
The Center for Housing Policy found that, Stable and affordable housing also supports mental health by limiting stressors related to financial burden or frequent moves, or by offering an escape from an abusive home environment. Affordable homeownership can have mental health benefits by offering homeowners control over their environment.
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How To Get The Best Deal On A Police Officers Mortgage
The best way to find out which specialist lender is best suited to you would be to take the advice of a mortgage adviser.
Our panel of advisers have years of experience in helping people to find the best lender, with the best rate, suited to their profession. To get started, answer 5 simple questions to find out how we can help you.
As an example, many police officers will live in areas with high house prices. The reason being is often down to living in areas where youve been posted, away from your own local area.
Some of the lenders our advisers work with can sometimes offer mortgages of up to 100%, with no deposit required.
In other cases, lenders will understand that younger police officers might not have any form of a deposit at all but know that their profession is secure with likely pay increases to come in the future.
Based on that, they could be prepared to offer a higher mortgage loan than would normally be offered to an employed person.
National Police Credit Union Conventional Mortgages**
National Police Credit Union Directly Lends Purchase and Refinance Transactions up to 80% Loan to Value
- Competitive Market Rates
- 5 to 30 Year Terms for all Fixed Rate Loan Programs
- 5 and 7 year ARMS with Aggressive Interest Rates
- 3% Down Purchase Options for First Time Homebuyers
- 95% Loan to Value Purchase and Rate and Term Refinance Options
- Cash-Out Refinance Options up to 80% Loan To Value
- Financed through Quicken Loans®
- 100% Purchase Financing
- VA Streamline Refinances up to 100% Loan to Value
- Cash-out Options up to 90% Loan to Value
Financed through Quicken Loans®
- 3.5% Down Payment Options with Less than Perfect Credit
- Rate and Term Refinance Options up to 97.75% Loan to Value
- Cash-out Options up to 85% Loan to Value
- Financed through Quicken Loans®
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Right To Buy / Right To Acquire
If you currently rent a property owned by a housing association or the local authority, you may be able to buy it at a price thats much lower than the market value. The availability of these two schemes varies in different regions so youd need to check to find out if this is a possibility for you.
The Right to Buy discount you are given depends on a number of factors, such as the type of property, where you live and how long you have been a council tenant. The Right to Acquire discount varies depending on where you live and ranges from £9,000 to £16,000. A good advantage of these schemes is that many lenders will allow you to use your Right to Buy or Right to Acquire discount as your deposit.