As a government employee, you work to provide for your community, whether local or national. While working as a federal employee can be a rewarding career, it can also bring financial challenges when it comes to buying a home. Income limitations and frequent moves can make homeownership seem out of reach. The good news is that many federal government employee mortgage programs exist to help you find and qualify for the home of your dreams.
Benefits of home loans for federal employees
While buying a home may seem like a challenge for federal employees, the truth is, with various programs designed to help these employees, home ownership can provide many different benefits that can help in the long run. Benefits can include:
- The ability to build equity in your home
- No more worries about rent increases as your mortgage payment remains the same year after year
- Deduct your interest payments at tax time
- Sell your home for a profit when it’s time to move
Mortgage programs with special rates for government employees
As a federal employee, there are many options available to you when it comes to mortgage lending. In addition to general loan options, other programs exist for government employees that include everything from down payment assistance to grants.
Federal Housing Administration (FHA) loans are available to all U.S. citizens. These loans have lower down payment and loan requirements, making it easier for those with lower incomes and less in savings to qualify for a home loan. While most conventional loans require a down payment of around 20%, FHA loans offer down payments as low as 3.5%.
You don’t need to be a farmer to qualify for a USDA loan. Overseen by the U.S. Department of Agriculture, USDA loans are designed for those in the low to moderate income brackets looking to buy a home in designated suburban and rural areas. No down payments and low-interest rates are common with USDA loans.
If you served in the military before becoming a government employee, a VA loan overseen by the Department of Veterans Affairs is another option for you. VA loans offer more flexibility and can work with lower credit scores and savings than a conventional loan. And, with most VA loans, you won’t need to make a down payment or pay for private mortgage insurance.
Employee-assisted housing (EAH) programs are designed to help employees afford housing near their workplace. Many of these programs offer down payment assistance, grants, or loans in order to help you qualify for a mortgage and purchase your new home. This is especially beneficial for employees living in areas with a high cost of living, where homeownership often seems out of reach.
Hero Home Programs
Hero Home Programs are a team of specialists designed to help federal employees find the financing and help they need to find the home of their dreams. This can include everything from first-time buyers’ programs and grants to reduced/waived fees and down payment assistance from programs such as Good Neighbor Next Door and Dollar Homes.
Things to consider before taking home loans
Before you decide on a loan option, there are a few things you need to take into consideration.
Know your eligibility
Every loan is different, so you must understand the different requirements for each loan option. When working with a lender, it is important that they know you are a government employee, as many loans have lower income requirements or other programs available.
Understanding your budget is one of the most crucial steps in the home buying process as this helps you understand how much house you can afford. Consider your monthly income and your current debts to determine your debt-to-income ratio. As a homeowner, you also have to consider property taxes and any unexpected repairs that may be necessary. When considering your budget, you must consider these things.
Do you have money for a down payment if necessary? While there are loan options that do not require a down payment, as well as programs that offer down payment assistance, it is important to know what you may have available for a down payment if it is necessary.
When a borrower takes out a mortgage, lender fees are usually part of the process. Because many government loans often hold a lower risk, lenders tend to charge higher fees for these loans. Shopping around can help ensure you pay the lowest fees possible.
Compare interest rates
Interest rates are an important factor to consider when choosing a home loan. Interest rates can vary from lender to lender and most offer lower rates for government employees. Be sure to shop around in order to find the lowest interest rates available to you.
When special programs help you get the home of your dreams
Home buying can be an exciting and frustrating process, especially for first-time borrowers. As a government employee, things like salary limitations or the need to move more frequently for your job can often make homeownership seem out of reach. The good news is there are many lending options and programs that are designed to make the process easier for you.
Hero Home Programs offers special assistance
At Hero Home Programs, we are committed to helping federal employees get the financing they need to purchase the dream home they deserve. Our team works with you to find a wide range of grants, discounts, and available benefits and loans that will save you money and get you the keys to the home of your dreams in no time. To learn more, book a call with us today.