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- INTEREST RATE: Please call a participating lender for current rates or call 1-800-NJ HOUSE.
- MORTGAGE LOAN MATURITY: 30 year maximum term, conventional, fixed rate, maximum 97% Loan-to-Value (LTV). Loans with greater than 80% LTV must have private mortgage insurance coverage or must have FHA, Rural Housing or VA coverage (note that government insured loans may not permit PITI write down option) Loan-to-value percentage is the unpaid balance of the mortgage principal to the appraised value or sale price (whichever is lower) of the property.
- FEES: Borrowers must pay 1% of the loan amount at time of application. The lender will reimburse borrower at the time of closing on a zero point loan.
- ELIGIBLE PROPERTIES: One-family units, including condominiums and cooperatives (new and existing). Properties must be pre-inspected and approved by the Public Housing Authority (“PHA”). The Borrower must retain a qualified Home Inspector to perform a home inspection.
- ELIGIBLE BORROWERS: Individuals only. Corporations are not permitted to act as borrowers. Borrowers must have a current Section 8 housing voucher from an issuing Public Housing Authority (“PHA”) that has a HUD approved voucher payment administrative plan. The PHA administrative plan must permit vouchers for purchase of properties located in the place of purchase and the PHA may have to approve the financing terms offered by the Agency. Borrowers purchasing in Statewide areas must be first time home buyers. Borrowers purchasing properties located in the targeted areas do not have to be first time home buyers, however, at the time of loan closing no other residential properties may be owned. Combined housing and total debt ratio based on the Borrower’s income (excluding Section 8 payments) can not exceed 41% of the Borrower’s income.
- OCCUPANCY: Property must be occupied as the borrower’s primary residence within 60 days of closing. Borrower must maintain occupancy for the life of the loan.
- MORTGAGE INSURANCE: the following coverage is required on all conventional loans and is determined by downpayment.
95.01% to 97% LTV 35% Coverage for a 25 year to 30 year term
95.01% to 97% LTV 30% coverage for a 25 year or less term
90.01% to 95% LTV 30% coverage regardless of loan term
80.01% to 90% LTV 25% coverage regardless of loan term
Loans processed under the FHA, VA and/or RECD guidelines must have the appropriate insurance or guarantee.
- HOME BUYER EDUCATION: All borrowers must participate in home ownership and personal finance counseling/education sessions sponsored by the Agency, the PHA or the lender. The PHA may impose additional counseling requirements. Borrowers must be issued a Completion Certificate after the counseling is completed.
- DOWNPAYMENT REQUIREMENTS: All loans require a minimum of 3% downpayment regardless of whether the loan has private mortgage insurance, FHA, Rural Housing or VA guaranties.
- CLOSING COSTS: Borrower may fund closing costs with gifts or unsecured loans from non-profit organizations or public entities. Escrow payments must be paid from borrower’s liquid assets. Borrowers whose monthly budgets have less than $900 remaining after making their monthly housing payment will be required to have in place a home warranty protection insurance policy for a period of at least one year following the date of the home purchase.
- INCOME LIMITS: Income limits for all mortgage programs are determined by the area of purchase as well as family size (listed on separate sheet).
- PURCHASE PRICE LIMITS: Purchase price limits exist for both the statewide and target areas. Loans submitted using FHA, VA and/or RECD guidelines must adhere to FHA or HMFA guidelines (whichever is lower) regarding purchase price limits or mortgage loan limits.
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