Loans for Doctors, Teachers, Policemen, Firefighters, & EMTs

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If you’re searching for a 100% home financing solution you’ve likely heard about two primary options that are readily available in today’s market, VA loans and USDA rural housing loans. In order to qualify for a VA loan you have to be an eligible military serviceman or woman or veteran. With a USDA rural housing loan the property has to be in a designated rural community and you can actually be disqualified if you make too much money. So, where’s the “no money down love” for the rest of us? If you’re in the right profession, you might be able to find an alternative. Below we’ll take a look at some low and no money down niche mortgage programs.

Doctors Loans

We can already hear the groans. Why on earth would doctors need no money down mortgage solutions considering how outrageous healthcare costs are? Well according to a recent Bloomberg article, Ben Bernake’s son is about to graduate from medical school with $400,000 in loans (come on Ben, hook him up). The same article notes that the median cost to attend a four year medical school today is $278,455 for private schools and $207,868 for public ones. Upon graduating, Doctors then spend multiple years as Residents where they don’t exactly break the bank. Luckily for these future money makers, there are banks out there that are willing to bet on their future income. After all, what banks would not want the deposits of these future high earners.

SunTrust Mortgage has developed a portfolio loan program designed for Physicians. In many cases, Doctors and Residents can borrow up to 100% of value of the home. Here are some highlights (all details are subject to change):

  • Both Fixed Rate and ARM Options
  • No Mortgage Insurance
  • Primary Residences
  • 100% financing for doctors (to $650K) and residents (to $417K)
  • 95% financing for doctors to $1 million loan amounts
  • 90% financing for doctors to $1.5 million loan amounts
  • There are no prepayment penalties

We asked Brent Eckhardt, a mortgage professional with SunTrust here in Wilmington, who stated that “rates on our Doctor Loan are often better than the rates on our 20% down conventional products”.

There are other companies out there who are also offering niche programs for physicians including Bank of America, Lion Bank, and BBT to name a few.

Mortgages for Teachers

We owe a lot to teachers and luckily there are some banks, credit unions, and mortgage lenders out there who are willing to offer them assistance when it comes to home financing. As I started to conduct my research I found tons of programs out there for teachers (most on the local level). Some offered 100% financing opportunities, no closing costs, tax credits, and even grants to help cover closing costs.

Here are a few to check out:

Mortgages for Policemen and Women, Firefighters, and Other First Responders

Much like the home loan programs available to educators, there are many low and no money down payment solutions for cops, firefighters, and EMTs.  For exmaple, the Connecticut Housing Finance agency offers 30 year fixed rate financing at below market rates. RP Funding in Florida’s First Responder Home Loan Program has no application, origination, broker, underwriting,, flood cert, credit report, document prep, or tax service fees. Many of these programs are run on the state or municipality level.

The Good Neighbor Next Door Program from HUD

One of the coolest programs available to teachers and first responders is HUD’s Good Neighbor Next Door Program. Let’s start with the Good News….. HUD offers an incentive in the form of up to a 50% discount from the list price of a home. That’s a steep discount! Ok….The downside is that the properties must be in “revitalization areas”. To be eligible, properties must be listed in these locations through the Good Neighbor Next Door for seven days. Oh… and the borrower must commit to live in the property for 36 months are their sole residence.

Nat Criss is one of the owners of ForTheBestRate.com. Nat has an extensive background in mortgage finance, real estate, and online marketing. Nat was previously the Marketing Director for AAXA Discount Mortgage, a mortgage company which conducted business in 26 states, and currently helps run CMG Equities, LLC and ILM Marketing. My Google Profile+

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