Loans for first responders and teachers
Are you a firefighter, teacher, emergency medical technician, nurse or police officer (federal, state or local)?
You might be able to get a home for half of the asking price with the U.S. Department of Housing and Urban Development's "Good Neighbor Next Door" program.
How it works: Certain foreclosures in HUD's inventory are designated for this program, says Brian Sullivan, a public affairs supervisor with HUD.
Employment-qualified buyers who want to live in one of the houses pay a mortgage based on half the home's asking price, he says. A 2nd mortgage -- for the other half of the home price -- will evaporate at the rate of one-third per year. And after 3 years, it's gone.
But if the homeowner moves or switches to a nonqualifying career before the 3 years are up, he or she will owe whatever portion of the 2nd mortgage is left, Sullivan says.
What you need to know: You must be able to qualify for a mortgage for the full price of the home, he says.
Houses are former foreclosures, all in distressed neighborhoods, he says. Generally sold in "as is" condition, "it would not be uncommon for them to need some rehabilitation," says Sullivan.
RATE SEARCH: Shop today for a mortgage.