Buy a house in New Jersey

Do you want to buy a house in New Jersey?

What you will need to buy a house in New Jersey.

The lowest credit score to buy a house or refinance your mortgage is 500. These new requirements for both FHA and VA went into effect in 2010.

• FHA requires a minimum score of 500
• VA requires a minimum score of 500
• Fannie Mae requires a minimum score of 620
  
• Freddie Mac requires a minimum score of 620
• USDA requires a minimum score of 580
• Portfolio requires a minimum score of 640

When you apply for a mortgage your monthly income minus your monthly liability determines your maximum loan amount. Mortgage loan requirements include a maximum debt to income ratio. When a borrower applies for a mortgage, they are required to disclose all debts, open lines of credit, and all possible approved sources of regular income. Using this data, the lender can calculate the borrower's debt-to-income ratio.

• Most lenders will limit maximum debt-to-income to under 50%
• The maximum debt to income ratio is 54.99%
• Manual underwriting maximum debt to income ratio is 43%

There are 6 different types of programs that you may qualify for. Each program has a different down payment requirement:

• Fannie Mae minimum down payment 5.0% with above 620 credit score
• Freddie Mac minimum down payment 5.0% with above 620 credit score
• FHA minimum down payment 3.5% with above 580 credit score 10% down payment with below 580 credit score
  
• VA zero down payment with minimum credit score of 500
  
• USDA zero down payment with minimum credit score of 580
• Portfolio minimum down payment 15.0% with above 720 credit score

FHA allows the down payment to be your own funds or the funds can be a gift. Fannie Mae and Freddie Mac require a minimum credit score of 620 to buy a home. Their mission is to help ensure that home buyers and home owners have access to mortgage financing.

Eligible Property/Project Types

• Single Family Residence (one unit, attached or detached including town homes row homes)
• Manufactured Homes
• HUD Owned Properties
• Modular Home
  
• Pre-cut Home
  
• Panelized Home
• Multi-family (two to four units)
• Mixed-Use Property
• Condominium
• Planned Unit Development (PUD)
• Move-on 55+ Age Restricted Communities
• Co-ops
  

What documentation will I need?

• Personal tax returns for the past 2 years with W2's
• Current pay stubs for the past month
• Bank statements for last 2 months (all pages)
• Latest retirement statement for each active account (all pages)
• Sales contract (purchase)
• Clear copy of Driver’s License (front and back)
• Clear copy of SS card (front and back)

Credit score needed to buy a house in New Jersey

We look forward to working with you.