First Responder Home Loans: Your Guide to Buying Your Dream Home

First responders are the people who help us during emergencies to keep us safe. They include law enforcement, firefighters, police officers, EMTs, and paramedics. To thank them, there are special home loans just for first responders. These loans make it easier and cheaper for them to buy their own homes.

In this blog, we’ll examine the qualifications required for the first responder first-time home buyer grants and loans. You’ll also explore how to apply for and get these loans.

Who Qualifies as a First Responder?

If you’re looking to benefit from financial aid that targets first responders, you first need to know if you qualify.

Generally, ‘first responder’ refers to those who arrive first to deal with a crisis. Therefore, if you’re a law enforcement or a medical professional, you might qualify.

However, private lenders may give these loans to some other positions depending on the loan programs. For instance, some programs consider nurses and teachers as first responders as well. Moreover, you may qualify whether you currently work in this profession or have retired.

Here’s a list of positions that may qualify you as a first responder:

• Police Officer

• State Trooper

• Sheriff Deputy

• Federal Officer and Agent

• 911 Dispatcher

• Firefighter 

• Emergency Medical Technician

• Paramedic

• Flight Nurse

Some professionals who arrive first during emergencies but who don’t qualify include lifeguards, civilian deputies, fire corps volunteers, or security officers.

What Is a Home Loan for First Responders

If you’re an emergency service provider, there are programs that’ll assist you in buying a home. These home loans typically offer lower interest rates than the rest of the market. They offer a reduced down payment on your dream home. Plus, this loan might offer rebates, closing credit, and smaller insurance premiums.

However, you’ll need to meet the criteria of the loan program for you to apply for it. In addition, your residence and loan amount will need to fit the lender’s requirements.

First Responder First-Time Home Buyer Grant: Explained

Lenders don’t expect you to repay this type of financial aid. In particular, grants help you with mortgage fees, closing costs, or down payments. However, you’ll have to pay back your loan if you move out of the house or sell it.

The Criteria and Requirements of First Responder Home Loans

Before you can apply for this financial help, you’ll need to meet these criteria:

• Be a First Responder: You should verify on ID.me whether it lists your job position. However, even if it doesn’t list your position you may still be able to submit an application to these programs. And so, you should check with the lender whether they consider you a first responder. You should also consider that your retirement status may affect your application.
• Meet the Income Limit: Since these programs target at-need first responders, you’ll only qualify if you don’t exceed a certain income limit. This maximum value depends on the lender’s specifications. However, most lenders will base the maximum income you can make on the median of your county.
• Have a Good Credit Score: Though each lender has its minimum requirement, a score of 640 is usually enough. This is because the lenders can establish that you’re a reliable borrower if you have good credit.
• The Home Must Be Your Primary Residence: Since these grants and loan programs aim to facilitate first responders to live in these homes, you can’t resell it or lease it out. Otherwise, you’ll incur extra fees and penalties.
• The Home Must Meet Standards: When you get this type of loan or grant, the lender will have to appraise the house. They’ll verify the safety and quality of the property to ensure it’s fit for living conditions.

Additionally, the loan lender may have other requirements you need to meet such as passing a background check, going through a homebuying course, or sending documentation supporting your first responder status claim.

Ways to Get First Responder Home Grants and Loans

As a first responder, you’ll find financial help to acquire a residence in the following programs:

1. Good Neighbor Next Door

The US Department of Housing and Urban Development offers loans that will help you find a home. These residences can cost you as little as half the price of their original appraised value. However, they’re only available in specific locations and for a limited time of one week. So you’ll have to verify the list of properties in your state to know which are available under this program.

2. Homes for Heroes

This program helps first responder first time home buyers save on average $2,400. Plus, among first responders, they’ve included military officers and teachers.

3. BorrowSmart

Private lenders offer this program to the first responders who got a mortgage through Freddie Mac and HomeOne. BorrowSmart financial aid focuses on down payment assistance on single-family homes and condos.

4. Local Programs

States have their own programs that’ll help you acquire a home so long as you meet their requirements. For example, there’s the Homes for Texas Heroes which may assist with 3% – 5% of the total loan amount.

Steps to Apply for a First Responder Home Loan

• Research: Start by researching the various loan options and programs available to first responders.

• Pre-approval: Get pre-approved for a mortgage to understand how much you can afford.

• Find a Real Estate Agent: Work with a real estate agent familiar with first responder loan programs.

• Home Search: Begin your search for the perfect home.

• Apply for the Loan: Once you’ve found a home, apply for the first responder home loan.

• Close the Deal: After approval, close the deal and move into your new home.

Conclusion

Now that you know what a first responder first-time home buyer grant and loan is and how you can get one, you can check if you are eligible, and apply for it. If you meet the eligibility criteria, this help may come in the form of a reduced down payment, lower interest rate, rebates, or decreased closing costs. Furthermore, you will get a breadth of loan programs at your disposal such as BorrowSmart and Home for Heroes. Interestingly, some programs even forgive your loans or ‘gift’ you grants which you don’t need to repay.