New Jersey FHA Mortgage

New Jersey FHA Mortgage

New Jersey FHA Mortgage - What are FHA Loans?

FHA Loans provide low-cost insured Home Mortgage Loans that suit a variety of purchasing options. Whether you're buying a home or want to refinance your mortgage, FHA loans might be right for you. If you're unsure about your credit rating, or have concerns about a down payment, FHA loans can give you piece of mind with low closing costs and flexible payment options.

What factors determine if I am eligible for an FHA Loan in New Jersey?

To be eligible for an New Jersey FHA Loan, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.

What is the maximum amount that I can borrow?

New FHA policy requires a minimum credit score of 500 to buy a house or refinance. Borrowers with a credit score above 500 are eligible for an FHA loan.

New borrowers will now be required to have a minimum credit score of 580 to qualify for FHA 3.5% down payment. New borrowers with less than a 580 credit score will be required to put at least 10% down payment.

Borrowers with a score above 580 can refinance up to a 97.5% loan-to-value on a rate and term refinance. And up to 85% cash out refinance with a credit score above 580.

How much money will I need for the down payment and closing costs?

New Jersey FHA Loan Programs require the home buyer to invest at least 3.5% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the home buyer must invest at least $3,500. However, the home buyer can use gifts from family, funds from local, state or government agencies, or other sources for the down payment.

What property types are allowed for FHA Loans in New Jersey?

While FHA Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the borrower intends to occupy one part of the multi-unit residence.

What types of refinance programs does FHA offer in New Jersey?

There are three main types of FHA Refinance loans available in New Jersey.

New Jersey FHA Mortgage

FHA Rate/Term Refinance

The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate FHA Insured Loan.

Cash-Out Refinance

An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

Streamline Refinance

The FHA Streamline Refinance is designed to lower the interest rate on a current FHA House Loan or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.

How much can I refinance in New Jersey?

Maximum FHA Loan Amount in New Jersey: New Jersey FHA Mortgage

The maximum FHA Loan Amount allowed for FHA loans varies from county to county in New Jersey. The highest maximum FHA Home Refinance amount right now in New Jersey is $625,500. The lowest maximum amount available in any county is $402,500. To see what the limit is in the county in which you're interested, please refer to the FHA Loan Limit chart at the bottom of this page.

Maximum financing: In New Jersey, the maximum financing for an FHA Rate Term Refinance (No Cash-Out) or FHA Streamline Refinance Program (No Cash-Out) will be 97.75% of the appraised value of the home or its selling price, whichever is lower. The maximum financing for an FHA Cash-Out Refinance in New Jersey is 85%.

What factors determine if I am eligible for an FHA Refinance Loan?

New Jersey FHA Mortgage

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