New Jersey FHA Loans

For anyone thinking about relocating to New Jersey, right now is the ideal time to apply for an FHA loan. The Federal Housing Administration (FHA) and US Department of Housing and Urban Development (HUD) have been helping make the loan process simple and affordable for over seventy years. During that time, the FHA has helped millions of American families become proud new homeowners and millions more avoid foreclosure on their properties. Today, the FHA and HUD are stronger than ever and offering bigger and better benefits than ever before.

Conventional Loans vs. FHA Loans

Conventional loans are more expensive today than ever before. For starters, most lenders are not willing to issue new loans without a big down payment which can be as much as 20%. With an FHA loan, you are only required to pay 3.5% for a down payment. This means that even if you don’t have a lot of savings, you will still be able to afford a new home. With an FHA loan, you might even be able to qualify for the American Dream Down payment Initiative (ADDI) which will pay your down payment, making it an even more affordable process.

Additional Benefits

While it is possible to find conventional loans with a down payment of 5%, these are quite rare and generally make up for the risk by raising the interest rate and requiring the borrower to pay for private mortgage insurance (PMI). With an FHA loan, you are already insured by the government, eliminating the need for PMI. Plus, with an FHA guaranty, you are a very secure borrower and will be able to take advantage of low interest rates. The other benefits of a New Jersey FHA loan include easy approval, streamline refinancing and flexible repayment plans.

Eligible Houses

Eligible houses for FHA loans include one to four-unit family properties. There are also mortgages available for homes that need a lot of rehabilitation and homes that require energy efficient upgrades. To see more on what houses qualify for an FHA loan be sure to check out the HUD website.

Get Pre-approved Today!

We have a team of FHA home specialists who are ready to help you get started today. Simply fill out our secure online form and we’ll have you pre-qualified for free with no obligation.

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