Finding a home purchase product that caters for both low and moderate-income needs of applicants in the Garden State can be one of the best decisions you can ever make. If you earn less that 80 percent of the area’s average income, you can go for FHA mortgage New Jersey through the Direct Program. Alternatively, if your income is slightly above or exactly 115% of the Area Median Income (AMI), you can settle for the Guaranteed Program.
Flexible Amortization Period
We recommend that you apply for either of the two main loan periods with FHA mortgage NJ. These include:
- The 30-year duration that is available at a permanent rate. Its merit lies in the fact that the low interest rate remains steady throughout the term.
- The 15-year plan, on the other hand, allows you to convert an existing interest rate to the lowest margin currently in the market. You can also extend to the permanent plan of 30 years.
Which plan suits you best? Talk to our specialist, and we will be glad to offer a helping hand.
Accessible Down Payment
Other than the loan schemes by the United States Department of Agriculture (USDA) and Veteran Affairs (VA) there is no other program that provides 97% loan-to-value financing. This is because you only pay a marginal down payment, as follows:
- FHA mortgage New Jersey comes with a down payment of 3.5%, while the conventional market peaks at 20%.
- You can receive part or the entire upfront from a family member, the government or an NGO.
Indeed, even the low money down has flexible terms in that it can emanate from a donor.
Possible Insurance Options
FHA mortgage NJ comes with two types of policy covers. The first is the Upfront Mortgage Insurance Premium at 1% of the entire borrowed amount. The other is the Monthly Insurance Premium (MIP). These two plans have these further options:
- You can refinance the Upfront policy to as low as 0.1%.
- You can lower MIP during a Streamline Refinance to 0.55%.
This cheap accessibility of the insurance owes to the fact that, unlike expensive covers of the conventional programs, this enjoys guarantee by the government. This is yet another indication of why you need to choose this program.
Applying for FHA mortgage NJ is effective through these few steps:
- Send us a request for either a direct, refinance or rehabilitation offer. The Housing Department gives rehabilitation credit of up to $10000 to applicants.
- Locate a lender with a competitive interest rate.
- Gain approval from HUD.
- Start the home ownership process after settling any closing fees.
As a final attestation of how flexible the terms of FHA mortgage New Jersey can get, we also ensure that the seller settles at least 6% of the closing fees as the government stipulates. This reduces the burden of upfront that you may otherwise have to shoulder. If you still have any issue that needs clarity, we welcome your request.
You can also contact us directly! Call [888] 202-4479