Think you can’t afford a home? A number of mortgage programs based on your affiliations can help offset the cost of purchasing of a home, making home ownership a closer dream than you might think.
“We’re starting to see more homebuyers use incentives available through specialty programs that can help ease the financial burden of buying a home in the current climate,” said Julie Haddock, mortgage market leader for Bank of Oklahoma. “With people not having a lot of disposable cash, these programs can provide more options for borrowers.”
These programs are becoming particularly key, as home prices and interest rates continue to stay high. The median sale price for an existing home in the U.S. hit a record high of $426,900 in June 2024, according to the National Association of Realtors (NAR). Meanwhile, the national average rate for a 30-year, fixed-rate mortgage was 6.86%, as of July 24, according to Bankrate.
Know what’s available
Whether it’s a program based on your profession, your heritage or even the company you work for, it’s worth digging into all options available when hoping to purchase a home, said Bill North, North Texas market leader for BOK Financial Mortgage®.
“All homebuyers have unique financial goals, so exploring various options for financing a mortgage ensures they find a loan that best fits their needs, whether it's lower monthly payments, shorter loan terms, or specific features like adjustable rates,” said North.
Here are some of the programs that may apply to your situation:
Advanced Medical Professional program. With the high cost of medical school, members of the medical profession often have a significant amount of student loan debt that can hurt their chances of qualifying for a conventional loan because of a higher income-to-debt ratio.
However, because of the higher income associated with this profession, options may be available to help address this when buying a home. For example, the BOK Financial Advanced Medical Professional (AMP) program benefits MDs, DOs, DPs, DDSs, DMDs, medical residents, medical fellows, DNAPs, CRNAs and more. The program also gives potential homebuyers options such as no downpayment plans, lender-paid private mortgage insurance (PMI), flexible debt-to-income ratios and special consideration for student loans.
U.S. Department of Agriculture Loans. Those living in rural areas may benefit from mortgage loans backed by the U.S. Department of Agriculture (USDA). Designed for rural homebuyers, these loans offer zero down payment options and competitive interest rates for qualifying rural and farm properties.
Members of the military. If you or your spouse has served or is currently serving in the United States military, there may be a program that is right for you. The Military Home Loan Program, backed by the Department of Veterans Affairs (VA) offers military members significant cost savings for home purchases, including no down payments and competitive interest rates. BOK Financial®, Bank of Texas, Bank of Oklahoma and Bank of Albuquerque also offer special discounts through an annual Veteran Appreciation Program, such as waiving the appraisal fee on VA loans around Veterans Day.
Section 184 Indian Home Loan Guarantee Program. Members of a federally-recognized tribe may be eligible for the Section 184 loan program backed by HUD’s Office of Native American Programs (ONAP). This program is specifically designed for American Indian and Alaska Native families, Alaska villages, tribes or tribally designated housing entities. The benefits of this kind of loan program include lower down payment requirements and flexible underwriting for qualifying lenders.
Company benefits. Some businesses align with a mortgage company or home builder to offer discounts on things like closing costs. Check with your HR department to see if any discounts are available to you just because you’re an employee.
“Your company’s benefits office is a good place to research any potential affiliations available to employees,” North said. “For instance, a number of employers are part of the BOK Financial ‘Financial Benefits’ program in which all employees and their extended family members can receive up to $2,000 lender credit on their home purchase or refinance.”
What to do if you qualify
North said it’s important to talk to your lender to see if you qualify for one of these programs and to confirm the details and ensure you understand the requirements.
“Consult with a mortgage advisor who specializes in these types of loans to get personalized service and advice,” he said. “Since each program has specific eligibility criteria based on factors like income, credit score, military service, geographical boundaries, profession or tribal affiliation, these programs might have more complex application processes or additional documentation requirements.”
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