Home Loans for Law Enforcement

Mortgages for Champions is proud to offer special home loans for law enforcement personnel.

We have two different types of special home loans for police officers and law enforcement personnel available. Below they are listed.

1)      The Champion. This special home loan program is a no bank closing cost loan. Every loan from the Mortgage Company will not be charged, but you will still have to pay all third party fees (appraisal, title, insurances, credit, etc.) as well as any interest due in association with your loan. This home loan is for Fannie Mae and FHA approved borrowers at a competitive interest rate. This home loan is for both active and retired personnel. To be eligible for this loan you must have DU approval and have proper champion documentation.

2)     Government Pension Loan. This is a retirement system home loan that is funded through the state’s housing and finance departments. This special home loan is for paid police in certain applicable states only.

Beware, as there is verbiage on some states’ websites that claims a potential tax implication of this type loan as well as high fees.Example, 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: 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 home 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 three years on the 37th month, the fee is reduced to $18 per month.  The servicing fee will be added directly onto the home loan payment.  In addition, a one-time set-up fee of $10 will be charged at closing.

If you work in any of the following fields, you can qualify as one of our eligible home loan champions: law enforcement personnel, police officers, sheriff officers, state troopers, case workers, and corrections and parole officers. Immediate family members of police officers also qualify.

Closing Costs for Special Home Loans

With the Government Pension Loan, borrowers are responsible for all closing costs in addition to the application fees. Under certain circumstances closing costs may be rolled into the home loans.

There are no closing costs for police officers with the Champion Loan! With this special home loan for law enforcement personnel, every bank fee is eliminated.

Here are examples of some fees that may be eliminated: Application Fee, Loan Processing Fee, Mortgage Underwriting Fee, Mortgage Commitment Fee and associated Commitment Points; which can save as much as 2.00% to 3.00% on each home loan!

Here are some important bullet points about our special home loans for law enforcement:

• 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 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 home loan (for any reason) up to a 85.00% loan to value.