Understanding New Jersey FHA Loans

by Kevin Barry on March 9, 2012

Why should I select the FHA for a mortgage?

Potential borrowers have solutions outside of the New Jersey FHA loans program, such as individual and traditional loans, to consider when making such an important decision as choosing a mortgage.What does the FHA offer citizens of New Jersey that individual mortgages do not?Why would someone choose another program over a New Jersey FHA loans program?

Basics of New Jersey FHA Loans

Short sale residences are available for purchase through the FHA programs in New Jersey.Qualified applicants for New Jersey FHA loans have a variety of options for purchase a dwelling for up to four families at a time, a condominium or a manufactured home on a permanent foundation. Mobile homes are not an option to purchase under the FHA program.

What are the earnings restrictions for New Jersey FHA loans?

Some New Jersey FHA loans offer down payment support and residential maintenance financing, and these sometimes have restrictions on earnings, so be careful to investigate specifics before choosing your home loan through the FHA or otherwise. For basic loan needs, New Jersey FHA loans have minimum earnings boundaries, but do not currently have maximum earnings boundaries.

Who should choose New Jersey FHA loans?

For those with a less- than-perfect credit score, New Jersey FHA loans can be the best option. The FHA guarantees the property home mortgage to the lender, so that the lender can be assured the property loan will be paid back. Often, FHA loans have smaller down payment requirements, making these loans attractive to low income borrowers that may be unable to qualify for other, private loans.

Keep in mind, however, that while the government guarantees the New Jersey FHA loans, it does not set the rate or particular down payment requirements. These change between home mortgage companies, as well as levels of assistance service and other FHA home mortgage solutions. Individual FHA options can include down payment gifts or home servicing funding for older homes.

A variety of other factors to consider when choosing a New Jersey FHA loans involve their strong history of working on behalf of the homeowner in areas like foreclosure avoidance and flexibility in job loss or sickness . In addition, natural disaster relief is often covered as part of New Jersey FHA loans, although particular policies differ with the financial institution.

Other Choices for New Jersey FHA Loans

While down payment support and low earnings guidelines are excellent factors to choose an FHA mortgage, other applications are available that benefit home owners as well. The Energy Efficiency Program helps home owners afford cost effective appliances, windows, air conditioning. Grants are available for down payments as well, such as AmeriDream, Partners in Charity, Family House Providers and Newsong. Cash-out refinancing offers credit seekers the chance to use equity and other mortgage monies for home rehabilitation or other needs. New Jersey FHA loans also take into account the stage of a person’s life during the qualification process, such as repayment of student loans, job losses or serious sickness that may affect the ability to repay the mortgage.

I’m a financial advisor specializing in FHA Loans in New Hampshire.

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