Before you study up on the types of home loans available, we always recommend determining how much house you can afford first. Once you know what you can afford to pay for a house, then it’s good to know what types of home loans are available. After reading about the different loan types, be sure to fill out the Homes for Heroes mortgage calculator. This calculator is a great tool to estimate your monthly mortgage payment. If you know what you can afford, the following will cover the four main types of home loans: Conventional loan, FHA loan, VA loan and USDA loans. Chances are you qualify for more than one type so spend a little time getting to know the pros and cons of each.
The Homes for Heroes mortgage calculator helps to determine an estimate of how much house you can afford before going through the home buying process. It will help you understand and plan for your ongoing financial commitment if you choose to purchase a home. There are four main amounts that make up your monthly mortgage payment: principal, interest rate, property tax and insurance (PITI). Learn how the Homes for Heroes mortgage calculator breaks out an estimate of each for different loan types and provides a total estimate of your monthly mortgage payments.
Read More “Best Mortgage Calculator to Estimate Monthly Payments”
To get approved for a mortgage when buying a house or refinancing, your lender will look at how you use credit and manage debt to determine if you are financially responsible. This is important because the type of loan and interest rate you receive for your mortgage loan depends largely on your credit score and credit history report. But what’s a good credit score to buy a house, and what is the minimum credit score to refinance? Here is some information about credit scores to help you answer those questions, as well as some credit repair tips to keep your financial health strong in 2019.
Making the decision to become a first time home buyer is complex. Or, if you’re looking to purchase your next house, sometimes it’s hard to know where to start. A good first step is answering the question: How much house can I afford?
For many people, the new year brings big changes — and there are few changes bigger than selling a home. You may be ready for a fresh start, but deciding whether you should sell your house is no easy decision. There are a whole host of financial factors to consider, not to mention the emotions that come with leaving a place you’ve made your home. With so much to think about, making the final decision may come down to one simple question: Will 2019 be a seller’s market? The short answer is yes. But it’s not all good news. There are a million factors that affect the housing market, and here are the main points you should consider when deciding to sell your house in 2019.
Did you know that it’s possible to buy a house without putting any money into a down payment? That’s right; there are fantastic zero down payment home loans available to finance your new home. Read on to learn more about some terrific zero down payment home loans and how you can get one to buy a house.
Are you ready to buy a home and you want to make sure that you get a terrific mortgage rate?
Buying a home is one of the most significant financial investments that you’ll make in life, and it’s essential that your home loan fits your budget and lifestyle. A fantastic mortgage interest rate is one that meets your budget requirements. Keep reading for advice on how to obtain the best mortgage interest rates on your new home loan.
Buying a home is one of the most significant decisions you can make in life, and it typically helps set you on a course for financial stability.
As you sit in the title office signing an enormous amount of forms, you will inevitably see a paper that lists every payment that will be due over the life of the loan. You will also see exactly how much interest you will pay over the life of the mortgage. These numbers can be very daunting and make you wonder if you’ll ever indeed “own” your home.
Police officers, troopers and correctional officers have an extremely difficult job serving their communities. So, when it comes time to buy a house and become a permanent part of that community, you want financing to be easy. Thankfully, there are a number of great home financing options available specifically for police officers. Let’s explore some of the most common types of loan programs that help police officers buy a home.
HUD Good Neighbor Next Door
As a law enforcement professional, you have a fantastic opportunity to participate in the HUD Good Neighbor Next Door program that helps public servants purchase homes in revitalizing neighborhoods. Through this program, you can buy a HUD home for 50 percent of the appraised value when the house is in a designated area. You must agree to live at the property for at least three years to qualify for the Good Neighbor Next Door program. Programs like these are a great way for police officers to save money and start improving communities from the day you move in.
FHA Home Loans
FHA loans are a great option for police officers and first-time homebuyers because you don’t need a stellar credit rating and they only require the buyer to put 3.5 percent into a down payment. These government-backed loans come with very competitive interest rates, although you will need to pay for private mortgage insurance (PMI), potentially throughout the life of the loan.
Homes for Heroes partners with mortgage lenders across the country who know these loan programs inside and out. Sign up and we’ll match you with a Homes for Heroes mortgage specialist who can help you figure out what’s best for your unique situation.
Geographic-Specific Home Loans
Depending on where you’re looking to buy, you may be able to find a geographic-specific home loan program for police officers. You’ll find these most often in major metropolitan areas where real estate prices are high. The city of Chicago, for example, has an excellent home buying assistance program available to police officers who work in the city.
The Chicago Public Safety Officer Home Buyer Assistance Program is a pilot program that was developed to improve struggling neighborhoods by encouraging police officers to purchase homes in those communities. Eligible police officers who meet the maximum income requirements receive $30,000 to help with down payment and closing costs. Many geographic-specific programs, including Chicago’s, require buyers to live in the home for a certain number of years to receive full benefits. Your Homes for Heroes mortgage specialist will help you navigate all of the details and requirements as you go through the loan process.
Time to Buy
Once you have your home loan financing in place, a Homes for Heroes affiliate real estate specialist will help you find the home of your dreams. Our real estate specialists are experts at locating fantastic housing options that meet your needs. Whether your department requires you to live within the jurisdiction, you’re searching in a competitive market, or you just want to live close to your precinct, our specialists can find the right home for you.
Along with sharing their expertise and gratitude, they’ll also save you substantial money on real estate fees. After closing, Homes for Heroes will send you a check for 0.7 percent of the purchase price. That means if you buy a $300,000 house, you’ll receive a Hero Rewards check worth $2,100 in the mail from Homes for Heroes. From the best possible loan to a check at closing, it’s just our way of saying thank you for the service and sacrifice of police officers everywhere.
Are you a police officer looking for help financing your next home purchase? Sign up today and see how Homes for Heroes can help you save money.
What Is PMI?
PMI is private mortgage insurance that you pay as part of your monthly mortgage payment. You only have to pay PMI if you have less than a 20 percent down payment when you purchase your house. If you don’t have a 20 percent down payment, paying the mortgage insurance is what allows a lender to give you a loan. You are paying the extra cost to show you are not at risk of stopping your monthly payments.