What Are HUD Homes?

The acronym HUD stands for the Department of Housing and Urban Development, a governmental agency established in 1965 by President Lyndon B. Johnson as a policy and program to combat poverty. The Department was created to ensure that all individuals in urban areas can access quality housing that is affordable and available to all people.

HUD housing is a title that shows up often when looking for a home. If you are looking for an affordable home, it is good to look into all options available, especially if the options will save you money. If you are in a position of needing an affordable home with low-cost options, consider HUD home as a way to finance an affordable first home to be used as a residence.

What Are HUD Homes?

HUD homes are properties that were purchased with FHA loans and have been foreclosed on. A house becomes a HUD property when homeowners cannot keep up with their monthly payments and default on their loans. At that point, the FHA pays the remainder of the mortgage owed to the lender and then seizes and takes control of the property. To make back the cost, the government will then sell the home, usually at a slight discount from the actual market value. HUD homes are sold as-is.

Who Is Eligible To Buy HUD Homes?

Any person who is eligible to qualify for any type of home loan can purchase a HUD home. If the buyer has sufficient funds available via financing, they can buy one. But, buyers should be aware of the requirements that a HUD home has. HUD homes should be the buyer’s primary residence and buyers can only purchase one every two years. The buyer must also live in their HUD home for at least one year.

What Are The Benefits of Buying a HUD Home?

Some people will only consider buying a HUD home, and with good reasons. Reduced pricing, payment assistance with closing costs, a $100 down payment option, and buyer residence over investor property are some of the main benefits of buying a HUD home.

Where Can You Apply For a HUD Loan?

Financing a HUD home is similar to financing options available to any other homebuyer. All buyers can conventionally secure a loan. Those with special circumstances or experiences are sometimes eligible for unique programs, such as those that qualify for a VA loan. HUD homebuyers can finance using an FHA 203(k) loan, which includes both the loan’s cost and the cost to make necessary repairs to the home to ensure it is safe for use as a primary residence.

VA Loans

VA loans are available for qualified veterans, enlisted service members, and spouses. These loans feature a lower debt-to-income ratio and qualify at a lower credit score than traditional loans.

Conventional Loans

Conventional loans, such as those garnered from Fannie Mae or Freddie Mac, are options for purchasing a HUD home in a traditional manner. Moderate credit scores are usually required for conventional loans.

FHA Loans

Buyers who have low credit scores or limited credit history can use an FHA to purchase a HUD home. An FHA is insured by the Federal Housing Administration (FHA) and requires a lower down payment.

Are There Home Loan Programs That Can Help Me Buy a HUD Home?

Buying any type of home, HUD home or not, can be a stressful time. It can also be quite expensive. That’s why there are home loan programs that will help homebuyers with their house purchase.

Hero Home Programs

For current or former heroes, including first responders, teachers, healthcare workers, or military service members, the Hero Home Programs offers discounts on selling or refinancing a home. The hero home program is a network of real estate agents and mortgage professionals who assists qualified homeowners and sellers. The program’s nonprofit aspect provides grants to local organizations to provide veterans and other qualified persons with financial assistance.

Section 8 Housing Choice Vouchers

These housing programs allow low-income families the possibility of homeownership by providing a sustainable subsidy that assists HUD homebuyers in maintaining their monthly payments.

HUD $100 Down Payment

The HUD $100 Down Payment makes homeownership available to buyers who will own and occupy the home. Buyers forego the usual 3.5% down payment and instead require a down payment of only $100. This is a fantastic deal and discount, as a downpayment for homes can reach 20% down.

One Dollar Program

The one-dollar program is a specialized program that allows low-income or mid-income homebuyers to purchase HUD homes with a value of less than $25,000, and that has been on the market for over six months, for only $1 down. This is an incredible deal that almost eliminates the downpayment for greater accessibility for homeowners of all income levels.

Buying a HUD Home Now

There has never been a better time to buy a home. Interest rates are low and sellers are eager to view a buyer’s offer. HUD homes are no different. While the HUD home process may take a bit more patience than buying from a private seller, the lowered down payments and home cost make it worthwhile in the end. When you work with a home buying specialist at Hero Home Programs, the savings can add up even more. Contact them today to determine your eligibility.

Original post here: What Are HUD Homes?

What Makes a Hero?

Heroes can be a part of any profession, but overall they are people who are selfless, generous, giving and are committed to making others’ lives better and safer.

Heroes are people who exemplify positive qualities and can set a good example for others. They are the models of society who we can look to for advice and for adherence to values and morals. Heroes are ordinary people who make choices every day to make the world a better place to live.

What Is a Hero?

A hero is a person who has committed to a lifestyle that helps others and does not cause distress to others. While there are some consistent qualities that heroes possess, becoming a hero is not necessarily a certain set of standards to strive to reach, but instead is based on the action of the individual and the way they impact others. The way a person influences others can make them a hero, even if they do not have a specific title or profession.

Heroes come in all shapes and sizes, but what they have in common is their desire to help others and make the world a better place. Because heroes are so versatile and different they are also inspirational for many different types of people.

What Makes a Hero? 

Identifying a hero isn’t always as simple as listing a set of attributes. The characteristic of bravery and courage that one shows running into a burning building may not be what the emphatic lifelong nurse experiences. However, there are a number of personality traits that heroes share. These traits include:

• Reliability
• Dependability
• Moral
• Ethical
• Committed
• Consistent
• Generous

Everyday heroes are often able to put themselves in someone else’s situation. They have an “others first” mindset and put concern for those around them above their own safety.

Who Are Our Daily Modern-Day Heroes?

There are so many modern-day heroes in our society. Military—both current servicemen and veterans—healthcare workers, police officers, firefighters, civil service agents, social workers and so many more. Each of these sectors is made up of people who want to make a difference in the lives of many people and has committed to making people’s lives better, safer and smoother.

They are people who, day in and day out, take risks that others would not normally take, at the expense of helping somebody else. Often, they take those risks for people that they don’t even know.

Let’s take a closer look at some of these modern-day heroes.

Military Servicemen

People in the military are considered heroes for their service to the country and their commitment to creating a safe place for their citizens within the world. They constantly put others’ safety—the whole country’s, in fact—before their own.

First Responders

First Responders are considered heroes because they arrive at the scene of accidents first, and are able to react calmly to save lives. They are brave and committed to helping others through medicine, quick action, and bravery.

Healthcare Workers

Healthcare professionals fit this category as well because they sign an oath to help all people who are experiencing illness, disease or another medical emergency. Not many people saw healthcare workers as heroes until Covid-19. Today, healthcare workers are at the top of many people's heroes list.

Teachers

Teachers are heroes to many people because they give their time generously in order to share their knowledge with others. Teachers are able to lead the next generation of leaders and heroes so society continues to function with a commitment to values and ideals.

Honoring Our Heroes

Honoring our heroes is an important way to show them how much we appreciate their service and contribution. Teachers, medical professionals, veterans, and other heroes often have special programs available to allocate special resources as thanks for their service.

Not only are many of these professionals given benefits and retirement plans that support them with resources throughout their lives, but they also have access to many additional privileges such as discounts and assistance with home purchases.

Honoring Our Heroes Through Homeownership

Hero Home Programs™ is one such program that honors our everyday heroes—Military, Healthcare Workers, Teachers, First Responders, among others—by helping them achieve their homeownership dream. Those that use the Hero Home Program save thousands of dollars and benefit from local and government grants and credits that specialists in the program find for their clients. From the first contact with a Hero Home Programs specialist to closing, they will be by their client’s side, helping them find the best resources for their home buying journey, and saving them the most money.

Original post here: What Makes a Hero?

Home Loans for Nurses: What You Need To Know?

While homeownership is an essential factor in building wealth, navigating the process can sometimes feel daunting. There are many questions, starting with the obvious—am I even eligible for a home loan? Then other questions begin to pile up. What are my qualifiers? Can I get financial assistance? How do I even begin the home loan process? The good news is that there is help available for qualified members of the nursing profession.

I’m a Staff Nurse…Can I Get a Home Loan?

As a nurse, you may encounter income factors that aren’t universal, such as employment gaps and per diem/shift work. But never fear, home loans for nurses is possible. While employment can be tricky to explain, nursing professionals generally make a steady income, and with a bit of patience and knowledge, lenders will see you as a solid investment.

Calculating the Total Income

Total income is a marker that lenders use to identify whether a home buyer is the right candidate for a loan. This marker can be calculated by adding the total gross income from your W-2 forms from the last two years of employment. Then, divide this number by 24 to get your gross monthly income. Mortgage lenders will use this number as a springboard to determine the debt-to-income ratio (earnings vs. monthly debts) to decide if you qualify for a home loan.

What About Home Loans for Travel Nurses?

Travel nurses have an income flow that loan officers often don’t understand. They consider it “unstable income” as lenders don’t like to see employment changes. For travel nurses, this kind of rock-steady record can be impossible—there are jumps between agencies, per diem work, and even periods of staff nursing.

To increase eligibility for a home loan as a travel nurse, be sure to have substantial employment and income history. FHA loans require a steady, documented income of at least two years for qualification. Have detailed paperwork (pay stubs, W-2s, and agency contacts) ready to demonstrate eligibility.

Be ready to explain the nature of travel nursing. By writing a letter detailing the profession’s high demand and your full work history, you can influence a loan officer to see you as a good candidate.
Finally, maintain a good credit score. A score of 580 and above is imperative to qualify for a home loan. A travel nurse can sometimes be considered self-employed, so an excellent credit score can go far in demonstrating an ability to pay bills on time and consistently.

Employment Gaps and How to Calculate Them

In the nursing field, employment gaps are inevitable. It’s merely the nature of the job. Employment gaps are the time taken off in between contracts. For both staff and travel nurses, these can occur between heavy assignments or agency changes. Typically, lenders consider a month or more a significant gap that will require explanation.

To account for employment gaps, be sure to have an excellent and detailed letter of explanation ready to show lenders. They will need to be able to understand the nature of nursing work thoroughly.

More importantly, have at least a two-year history of steady income. Explanations of contractual nursing work will go over better when a loan officer can see and understand a long-term employment history. Lenders review cases on an individual basis, so presenting an informed and detailed background is key.

Before Buying a House, Consider This

• Before embarking on the path to homeownership, certain things need to be considered.
• The nature of your work. For example, are you a travel nurse or a staff nurse? How do you get paid?
• What are your financial priorities?
• How much money do you have set aside for a down payment (FHA and some other conventional loans require 3.5% of sale)
• What is your credit score? What can you do to improve it?
• Are you comfortable explaining employment gaps and/or the nature of travel/staff nursing? Do you have the documentation to prove a steady income and ability to pay bills on time?

Programs Available to Help Nurses Get Home Loans

Hero Home Programs

The Hero Home Programs™ for Nurses is made up of a network of professionals that include Realtors, Lenders, Title Companies, Attorneys, and other home-buying professionals. They work together to offer special offers and discounts when a qualified applicant buys, sells, or refinances a home. HHP is available to a variety of medical professionals, including nurses, and offers the following benefits:

• • Waived fees
  • Discounted rates for mortgage loans
  • Increased maximum borrowing amounts
  • Free 12-month Home Warranty
  • Grants and rebates

• Credit at closing
• Discounts for home-related services (includes movers, carpet cleaners, inspection, and more)

To learn more about their offering, you can book a consultation with them here.

Nurse Next Door Grants

The Nurse Next Door program was developed to streamline the homebuying process for nurses by offering a matching program to find the best loan available. A team of professionals handle purchasing paperwork, financing, and closing and assist in finding the most affordable housing for the best rate.

Nurse Next Door professionals can help to navigate grants available to nursing professionals through federal, state, and local programs such as SHIP, Keystone Challenge Fund, HUD, VA, USDA, Fannie Mae, and other local agencies. Nurse Next Door also offers private money grants to qualified individuals, funded all or in part by agents and lending partners. These grants can be used toward closing costs.

Homes for Heroes

Homes for Heroes is a program available to healthcare workers to assist in buying, selling, or refinancing a home. Their team of professionals offers guidance in finding the best rates for loans and offers savings on lender fees, title service, and home inspection.

 

You may pick and choose which of these professional services to take advantage of, though with each specialist you use through HFH the savings increase. They are available to advise on finances and credit scores so that you can prepare yourself to present the best-case scenario to loan officers.

Due to the nature of some nursing professional paradigms, there may be a little extra work involved in convincing lenders to approve a home loan. However, overall nursing is considered a well-paid, stable profession. With a bit of research and utilization of these special programs designed to help healthcare professionals, homeownership can be more reality than a dream.

Original post here: Home Loans for Nurses: What You Need To Know?

Medical Mortgage Guide for Doctors

If you’re currently a doctor or about to become a medical doctor (MD, DO, or sometimes DPM) or in some instances a dentist (DDS or DMD), you could qualify for certain home loans designed specifically for doctors. These medical mortgages offer advantages and benefits that a conventional loan often does not.

What Is a Medical Mortgage or Physician Mortgage Loan?

A medical mortgage, sometimes called a physician loan, is a special home loan available only to medical professionals. Some lenders also consider dentists and veterinarians for this loan, but most commonly it’s for incoming or practicing physicians.

Medical mortgages main features are that it requires no PMI (private mortgage insurance), has flexible DTI (debt to income) requirements, and enables you to qualify without showing two years of income. Because doctors frequently have large sums of student debt early in their career, they may not always have the liquid assets other professionals do for a down payment.

Furthermore, data shows that doctors generally have a very good track record for paying back education loans in full. Because doctors generally have a decent amount of income, lending institutions are more likely to make allowances since they aren’t taking on a risky borrower.

Differences in Conventional Loans and Doctor Mortgage Loans

The main differences between a medical mortgage loan and a conventional loan are that medical loans do not require a PMI, they have a flexible DTI (debt to income) ratio, they will accept low to no money down payments, and they have flexible employment and income requirements. Let’s look at these main features of a medical mortgage closer.

Advantages of Medical Mortgage Loans

• Eliminates Private Mortgage Insurance (PMI)
  • In a typical conventional or FHA loan, to qualify for no PMI you need to provide at least a 20% down payment. Because most future doctors graduate with a six-figure student loan debt, the majority of their liquid assets go towards paying down these loans for many years and they are often unable to come up with this lump sum.
• No Need to Prove a 2-Year Income History
  • Because the path to becoming a doctor requires years of schooling followed by years of internships and residencies, it’s not always easy for prospective buyers to show a 2+ year income history, a requirement for most conventional loans. But, because the future earning potential of doctors is so high, this requirement is often waived if you can prove you have a secure job.
• Reduces the Influence of Your Debt to Income Ratio (DTI)
  • Conventional or FHA loans calculate your ability to pay back your loan by factoring in your DTI. If it is deemed too high, meaning too much of your monthly income goes towards paying previous loans, you will not be approved. This is commonly based on a calculation of 1% of your outstanding balance on the debts you bring to the loan. For doctors, this number can be quite high. Average medical school debt is 200K-250K, so a conventional lender would assume you are making payments of $2,500 a month toward this and that would be counted against your DTI.
• Allows You to Qualify Before Beginning a New Job
  • This ties in with the waiving of the 2+ year income history. Many lenders for medical mortgages will accept an employment contract as proof of income. For example, if you are moving from a residency to a permanent position, you may be able to close on your loan before you actually start your new job as long as you can provide proof of upcoming employment.
• Less stressful compared to FHA and conventional loans
  • Because of the lowered thresholds for down payments and DTI ratio, most physician loans are able to close faster and the general process is smoother.

Medical Mortgage Programs Available

There are a number of banks and lenders who provide options for physician loans, but below you will find some of the more well-known institutions and their practices. All medical mortgage lenders will have slightly different requirements. It is recommended that you explore your options and get quotes from multiple lenders. Working with a home loan specialist is advisable as they can assist you with streamlining the process of your home purchase.

Medical Mortgage Lenders

• Key Bank: Key Bank is one of the largest banks in the U.S. and found mostly in the western United States. They will accept 5% down payments for homes valued up to $1 million, no PMI, and provide options for fixed or variable rates.
• TD Bank: One of the ten largest banks in the U.S. and more prevalent in the eastern states, TC Bank is able to offer some borrowers 0% down for purchases up to 750K, no PMI, and provides refinancing loans as well as home loans.
• TCF/Chemical Bank: A great option for borrowers located in the midwest, TCF or Chemical Bank provides options for 0% down on purchases up to $1 million, no PMI, and allows future income to be used for up to 3 months after closing.

Medical Mortgage Home Loan Specialists

• Homes for Heroes™: This program covers more professions than just doctors (nurses, emergency workers, and teachers to name a few) and is a great option for doctors-to-be to find a home loan. This program works with borrowers to reduce lending fees and offer rebates after purchase (usually .7% of the purchase price). The company reports that most users save $2,400 on average when they work with their specialists. If you are looking into a medical mortgage, start with Homes for Heroes.

Physician loans are a great option if you’re looking to buy soon after finishing your schooling, and know that you will have the majority of your income tied up in school debt for many years to come. Working with the specialists at homes for heroes allows you to save money on your home purchase. They will work to streamline the process and maximize your savings.

Original post here: Medical Mortgage Guide for Doctors