Last Updated on May 10, 2024 by Luke Feldbrugge
Down payment assistance for firefighters can provide a great way to save some money on the purchase of a new home. If you’re looking to find out what exists for a firefighter, this post sheds some light on various down payment assistance and first time home buyer options, different loan types, housing grants, and exclusive home buying programs that can potentially assist full-time and volunteer firefighters in saving money when purchasing a new home.
Key Takeaways
- Federal and state initiatives offer considerable down payment assistance, including grants, forgivable loans, deferred payment loans, low-interest loans, and matching savings plans for firefighters.
- Specialized, government-backed loan types such as FHA, VA, and USDA loans provide low to no down payment requirements, making homeownership much more accessible.
- Homes for Heroes offers an average savings of $3,000 on home purchases for firefighters, when you close on a home with their local specialists. The savings they provide is in addition to other down payment assistance programs available.
Digging Into Down Payment Assistance for Firefighters
The path to homeownership can have some financial challenges, like having enough money saved for a down payment. Firefighters like you may have some money saved up, but you also understand the value of a dollar saved. So if serving your community as a full-time or volunteer firefighter provides you with some money saving opportunities, then you should know about them.
Firefighters have a variety of down payment assistance and firefighter home buying programs available to assist with handling the financial commitments necessary. They enable volunteer and full-time firefighters to purchase a home and save significant money in the process.
HUD U.S. Department of Housing and Urban Development
The federal government does not give housing grants to individuals, but it does award government funding for a new home to states and certain municipalities who distribute the funds to local residents. Here is the resource they provide about government funding for a new home.
Good Neighbor Next Door: 50 Percent Off for Fire Fighters
The HUD Good Neighbor Next Door program is not specifically a down payment assistance program for firefighters, but it certainly can save you a lot of money. The U.S. Department of Housing and Urban Development will sell you a house for 50% off. One of the program’s goals is to make the home purchase more affordable for community firefighters.
Eligibility criteria for properties in the Good Neighbor Next Door program are in locations identified as revitalization areas. These neighborhoods are looking for both economic and community development, and a good way to encourage that is to make properties available to local firefighters and other public service members at a substantial discount.
One thing to note is you must agree to live in the HUD home for at least three years.
With the Good Neighbor Next Door program, the properties are offered first to Good Neighbor eligible applicants seven days before they go on the general market. If this is an option for you, be sure to check out the homes available through Good Neighbor Next Door in your area.
State and Local Down Payment Assistance
Many states, local governments, and nonprofit organizations offer grants and low-interest loan programs, and some are tailored to firefighters. Many are tailored to first-time homebuyers. If that’s you, these programs are definitely worth investigating.
Check out our blog post that covers the down payment assistance programs and grants in each U.S. state. Keep in mind there may be other local programs that are not as well known, and this is where working with a real estate and lending professional who knows about local options can be helpful.
Sign up today with Homes for Heroes, a member of our team will follow up with you, and these conversations can begin when we put you in touch with our local specialist.
Below is an overview of general options that may be available in your community. If they are available in your area, please know each will likely have their own specific requirements and qualification parameters for firefighters.
- Grants – These are essentially free money, not requiring repayment, typically offered by state or local governments and nonprofits, with certain conditions such as residing in the home for a set period. An example of a national grant program is the National Homebuyer Fund.
- Forgivable Loans – These are designed to be waived under certain conditions, such as maintaining residence in the property for a set amount of time. If you decide to sell the property before the loan’s term expires, it may require repayment.
- Low-Interest Loans – Offer a more affordable repayment plan, These are traditional loans contributing to your total debt and monthly financial obligations. Such loans are commonly available through private lenders or banking institutions. It is a good idea to speak with a mortgage lender before proceeding with a low-interest loan, because the debt you incur for the down payment and mortgage is a key factor to consider.
- Matching Savings Plans – Matching savings plans incentivize saving for a down payment by doubling the amount you save within the program’s confines. These initiatives encourage disciplined savings but come with stringent eligibility requirements and caps on the matching contribution. For instance, the FDIC’s Individual Development Accounts offer matched savings but require a commitment of 12 to 36 months to fulfill, which may not work if you’re in a rush to purchase.
Government-Backed Mortgage Loan Programs
These government-backed mortgage loan programs are loan guarantees that greatly reduce or completely eliminate a down payment for firefighters.
- FHA Loan – FHA loans offer a lower down payment option, as low as 3.5%. This government-backed loan guarantee from the Federal Housing Administration can be an appealing option for homebuyers who earn a low to moderate-income, or who have a lower credit score.
- VA Loans – Even though you’re looking for down payment assistance for law enforcement, if you are an active duty service member or a veteran of the U.S. Armed Forces, you may qualify for the VA loan. The VA loan features no down payment! Not to mention many other benefits. Take advantage of this loan if you can.
- USDA Loans – Like the VA loan, the USDA loan offers no down payment. It is intended to help those interested in purchasing a home in rural areas. There are many law enforcement personnel who prefer to get away from the city after work, to a home outside the metro. If you’re planning to hunt for a house outside the city, this may be a legitimate option for you and worth the effort of looking into further.
Down Payment Assistance Eligibility for Firefighters
Eligibility for down payment assistance varies by program, but firefighters may find they are uniquely qualified for certain benefits. Common criteria include being a first-time homebuyer, having a low-to-moderate income, and purchasing a primary residence. Completing a homebuyer education course might also be necessary.
Homes for Heroes Offers $3,000 Average Savings
Homes for Heroes assists firefighters with their purchase of a new home and saves them significant money. Unlike other home buying programs intended for firefighters, Homes for Heroes and their real estate agents and loan officers work together to provide savings IN ADDITION to the established state and local down payment assistance that everybody can offer you.
“This was an amazing experience for us. My husband and I were both in Fire and EMS. It is incredible to see programs out there that give back for all we do for our communities. Unless you do these jobs you don’t know how much families sacrifice (which we would not change), and programs like Homes for Heroes shows us how you really appreciate what we do! Our agent was not only an amazing and knowledgeable real estate agent, but he cares about his clients and the Homes for Heroes program! We are honored to have been able to be a part of this process!” – Brenda in Wisconsin
“I really appreciate the Homes for Heroes program. It feels great to be rewarded, in any way, for the time I spend away from my family as a Volunteer Firefighter. The extra money definitely comes in handy after moving as well.” – Robert in Tennessee
Homes for Heroes agents and lenders offer down payment assistance for firefighters PLUS MORE!
When you work with Homes for Heroes local real estate and mortgage specialists to purchase a new home, you can save an average of $3,000 IN ADDITION to any of the other down payment assistance opportunities that you may qualify to receive (please note down payment assistance programs typically have specific qualifications and criteria that must be met).
The specific savings provided by Homes for Heroes is awarded after closing on the home, and it’s given in the form of a check so you can spend it on new furnishings, home updates, or anything else you may need. It is our way to say thank you for your service.
Sign up to speak with a member of our team. There’s no obligation. We will contact you to learn how Homes for Heroes can best serve your needs.
