Can your profession help you get a better mortgage? Yes, it can. There are a few jobs for which lenders and non-profits run special home buying programs. If you are a doctor, teacher, police officer, firefighter, paramedic, nurse, or other member of a career focused on serving the public, you might be eligible for a profession-exclusive loan.
The idea behind these loans is to offer aid to those who need to overcome challenges in order to obtain a mortgage. Of course, if one qualifies for a conventional loan, this is almost always the best option. But for those who cannot, a profession-exclusive loan may be helpful.
Here are a couple examples of these loans and why exceptions are made:
Doctor loans are specific because they are lenient on work history. Graduates of medical school who are entering the workforce have high earning potential, but no savings because of student loans. Doctors also have very low foreclosure rates, even when they do not typically meet traditional lending requirements.
Rather than talking with a lender about your specific career circumstances, teachers have the option of talking about specific government-backed loans. One of these is the HUD’s Good Neighbor Next Door program, which allows teachers to purchase HUD foreclosure properties for half the price with as little as $100 down. Teachers also have access to grants and tax credits.
How to Shop for Profession-Based Mortgages
A loan specific to your profession may not always be the best fit. If you’ve exhausted other options and are finding that you just do not qualify for a traditional loan, it is then time to start looking at other options. In order to find one of these programs you can:
- Check your state, county, and city government websites for programs
- Consult your union or national industry group for sources of specialized loans
- Obtain a few quotes from standard lenders with competitive rates
- Compare special and traditional programs.