Our Law Enforcement Mortgage Loans offers special discounted rates on mortgages for police and law enforcement officers. The following categories are eligible to qualify: Law Enforcement Personnel, Police Officers, Sheriff Officers, State Troopers, Case Workers, Corrections and Parole Officers as well as the immediate family member of Police Officers.
There are two different types of present Police Officer mortgages available.
1) The special program which is a no bank closing cost loan for all members of the above groups with proper documentation. This program can be for active or retired personnel.
2) A government pension loan This mortgage loan is for paid police in certain applicable states only.
Let us explain the difference between the two:
Champion and State.
1) The Champion: This is a No Bank Closing Cost Loan. The special program is a true no bank closing cost mortgage loan. When we say no bank closing costs, we mean every closing cost fee charged from the Mortgage Company will not be charged. You will still have to pay all third party fees (Such as an appraisal, title, Insurances, Credit, etc) as well as any interest due in association with your loan. This mortgage loan is for Fannie Mae and FHA approved champion borrowers at a competitive interest rate. You must need to qualify and have a DU approval to be eligible for this loan.
2) A Government Pension loan: This is a retirement system mortgage loan. This loan is funded thru the state’s housing and mortgage finance departments. Beware there is verbiage on the state’s website that claims a potential tax implication of this type loan as well as high fees
From the State of New Jersey:
The State Treasurer has obtained and is relying on an opinion from tax counsel that there is an adequate basis, in accordance with prevailing guidelines, to conclude that it is reasonable for the Police and Firemen’s Retirement System to take the position that mortgages issued under this program should not be treated as taxable distributions. If it is ultimately determined that these mortgages are taxable distributions, you could be required to pay tax on the mortgage proceeds as well as penalties. We suggest you consider consulting your own tax advisor before submitting your application. Here are the fees associated with the government loan:
FEES: Applicants will be required to pay a standard non-refundable application fee and a flat fee of not more than $1,500, $750 of which must be paid at the time of application. The balance of the flat fee is to be paid at closing. If the mortgage loan closes successfully, the administrator of the funds, HMFA, is to be paid $325 making the borrower’s total costs $1,825 (this $1825 does not include closing costs.) The fee at the time of application is not refundable unless the mortgage loan is denied by the lender for underwriting reasons.
Borrowers will pay a flat monthly charge of $30 per month as a servicing fee. After 3 years on the 37th month, the fee is reduced to $18 per month. The servicing fee will be added directly onto the mortgage payment. In addition, a one-time set-up fee of $10 will be charged at closing.
CLOSING COSTS FOR GOVERNMENT LOAN:
Borrowers are responsible for all closing costs in addition to the application fees. Under certain circumstances closing costs may be rolled into the mortgage.
Champion Loan: No Closing Costs for Police!
With the Champion program every bank fee is eliminated.
Some of these fees can be: an Application Fee, the Loan Processing Fee, the Mortgage Underwriting Fee and the Mortgage Commitment Fee and associated Commitment Points which can save as much as 2.00% to 3.00% on each mortgage loan:
- First Time Home Buyer and Second Time Home Buyer Program or a 203k Streamline to add a new kitchen or more bedrooms for your growing family.
- Financing for a Single Family Home, a two to four family unit, a condominium or a manufactured home.
- Financing for a Mixed Usage Commercial Property such as a Store with Apartments.
- Home Mortgage Loan Programs require very little or NO down payments, competitive low rates and allow more flexible credit criteria.
- Refinance Programs also provide a Rate and Term refinance up to a 97.75% Loan to Value of the Appraised Value of your Home.
- Refinance Programs also provide a Cash-out refinance mortgage (for any reason) up to a 85.00% Loan to Value.
If you have questions or would like to get more information about mortgages for police officers and law enforcement personnel, please fill out the form on this page or call us at (973) 577-7008.