FHA Loans in New Jersey
Have your eye on one of the many houses on the market right now? There are so many to choose from, partly because the economy is a bit slower. It truly is a buyers' market right now and if you're thinking about buying a house in New Jersey sooner rather than later, now is your chance! Since experts predict that the economy is on the verge of making a recovery, you can be sure that housing prices will slowly start to creep up again. Don't let this opportunity pass you by. Consider a New Jersey FHA loan to finance your home.
FHA Loan Benefits
If you're concerned about your finances and aren't sure if you can afford to buy a house quite yet, you owe it to yourself to investigate the New Jersey FHA loan program. The program's main goal, as set by the Federal Housing Administration which handles the loan, is to provide opportunities for homeownership to people who might not qualify for traditional bank loans due to credit problems, lack of credit history, or the inability to save up a large sum of money for a down payment. As such, New Jersey FHA loans require only a 3.5% down payment (compared to the traditional 20% required by most banks), allow buyers to roll closing costs into the loan, and are much more lenient when it comes to credit terms. Thanks to the guaranty that the New Jersey FHA loan program provides, the risk of the loan is decreased and banks are much more willing to provide these loans to people who might not qualify for their other programs.
FHA Loan Limits
To be sure, New Jersey FHA loans can be a huge benefit to people who are concerned about their eligibility for other programs. Perhaps the only caveat to this program is that the amount one can borrow on a loan is capped at a maximum which is determined each year by median housing prices in the country. The baseline minimum for 2009 is $271,050 for a single family dwelling, but the amount is adjusted for high cost of living areas.
For example, the current maximum loan value for a single family dwelling in Newark is $729,750, and for Atlantic City, the maximum is $453,750. The adjustments ensure that even first time buyers in expensive areas can afford to own their own home. Check with your lender to ensure that you have the correct minimum for your situation, especially if you're purchasing a multi-family dwelling.