Because of their unfaltering commitment, especially in times of pandemic, healthcare workers deserve all the help they need from both the government and private sectors, especially in owning a home.
As the buying prices of properties continue to increase due to the lack of supply and the increasing demand, health workers, along with other public servants, need sensible loan programs and other discount programs that make home buying easier.
Ahead, you’ll find some useful information abouthealthcare worker home loan programs.
1. Health Care Workers Can Avail Of Special Home Loans From Traditional Lenders
Health workers can avail of home financing through private lending institutions, such as banks, credit unions, and other companies. While regular home loans are comparatively higher, some lending firms offer special rates for homes for healthcare workers program.
These traditional lending companies may have more stringent guidelines as compared to government-back loan programs, but they’re more flexible on the purpose of the housing loan. For instance, an enterprising healthcare professional may ask for additional financing to purchase another home or a rental property.
2. Healthcare Workers Can Avail Of Government-Backed Housing Loans
There are two main government housing loan programs to choose from. These
mortgages are being offered by the Federal Housing Authority (FHA) and the US Department of Agriculture (USDA). These programs have different pros and cons but they share two things in common: flexible eligibility requirements and low down payment options.
For instance, USDA loans can provide 100% home mortgage provided that the area of purchase is included in the program. In addition, FHA loans require as low as 3.5% pre-payment and a credit score of at least 580.
3. The Biggest Housing Agencies Rely On Private Lenders To Carry Out These Programs
If you’re a healthcare worker eager to apply for a home loan, you may hear these names a lot: Fannie Mae and Feddie Mac. The Federal Home Loan Mortgage Corporation, otherwise known as Freddie Mac, and the Federal National Mortgage Association, or Fannie Mae, are government-owned corporations.
Some private lenders may use these names in claiming that they offer the best deals for educators, health care professionals, law enforcement personnel, as well as retired and active members of the military force.
This is because Freddie Mac’s Home Possible program, which allows health care workers, public servants, as well as members of the United States Armed Forces to borrow finance up to 100% of the purchase price of their homes, which is channeled through private lenders. Fannie Mae also offers similar programs that work in the same way but typically with smaller banks and credit unions.
Private lenders claiming to be accredited by both Fannie Mae and Freddie Mac offer waived fees and other benefits, such as free access to multiple listing services (MLS)–real estate’s comprehensive database of properties being sold in a specific area.
4. There Are Multiple State And Local Home Loan Programs For Healthcare Workers
Some states and local communities have their own programs to make it easier for healthcare workers to acquire a home. The state of Alaska, for example, has programs to assist low-income teachers and healthcare workers with up to 100% home loan financing or subsidized interest rates.
Another private lender has a Nurse Next Door Program, which allows first-time home buyers from the medical field with an easy application process and waived fees, as well as low down payment rates. All hospital employees, as well as dentists, chiropractors, and veterinarians are eligible to apply.
In the state of California, another traditional lender offers various home loan and financing products to both active and retired healthcare workers in the Golden State.
Health care workers of any specialization may also avail of special rates and waived loan application, processing, underwriting, and other fees related to the home buying process offered by numerous lenders.
5. The HUD’s Good Neighbor Next Door For Emergency Technicians And Public Servants
As emergency responders, emergency medical technicians are included among the public servants eligible for the Good Neighbor Next Door (GNND) program. Run by the US Department of Housing and Urban Development (HUD), this program offers up to 50% discount on HUD-owned homes in areas with high foreclosure rates and low rates of property ownership.
However, borrowers should be first-time home buyers and should use the property as their primary home for at least three years.
Before deciding which healthcare home loan program to avail of, check all the programs available in your locality and determine whether you’re eligible.
Also, compare all the offers and decide whether you need to choose between government-backed or private lender-offered housing assistance programs, or both. Checking how much money you can borrow is another key factor as you’ll likely search homes within these price ranges, which is important if you don’t have savings.
Ultimately, you have to choose a housing loan program that saves you time and costs in the entire span of the mortgage.