Where can I go to apply for a 1st time home owner grant in nj?

One Comment

1. W. E November 23, 2012

   I normally tell my clients to not hackle over the price of the home if they are needing asistance. And Lenders will & do accept up to 6 percent toward closing costs assistance. This can be used toward the downpayment & or closing costs. FHA lends up to 97 percent – and there is a First time homebuyer 100 percent loan called “MY Community”. Your middle credit score has to be 580+ (normally) and no judgements and leins against you. That is the same with FHA. It is up the the processor of the company that your file is submitted to on what they allow. I have worked with some awsome FHA processors, and I have worked with some that follow the book 100 percent. The new norm is if you have medical collections and you can explain what happened (loss of job, loss of income) A death in the family just as an example, they will allow medical to be overlooked. THis has to be in a letter sent to them. FHA has tryed to lower some of the guidelines. Check out these websites (ok) You will find First time homebuyer guide on them.

   http://www.fanniemaefoundation.org
   http://www.fha-home-loans.com
   http://www.freddiemac.com/

   The 2 programs that are common in the Mortgage Industry for Downpayment assistance are:

   http://www.nehemiahcorp.org/
   http://www.ameridream.com

   But if you try to go FHA and get turned down, do not dispare ok. If your middle credit score is 560 +, and you have 2 years job time, and proof of income (1 month pay stubs, 2 years W2’s) than you can get a 100 percent 1 loan with no MI. The rate may be slightly higher than a FHA rate, but you do get into your home, and you would not need the grant (if the seller helps toward closing costs). There is a fee that goes to nehemiah, if you use this program. Some sellers do not want to pay the fee. Read up on the 2 programs, and learn what you can. Also the person you work with to get your financing, should help you to understand the mortgage loan process.

   FHA has MI on any amount over 80 percent Loan to Value. Say you buy a home that is 100,000 and you borrow the full amount, than you will be paying on the morthgage and MI until the principle gets down to 80,000. This is just a example for you. Read up on the First Time homebuyer guide on the above websites. You can download them and print it off.

   Talk with a broker, a broker underwrites for many company’s (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a “hard” pull and it drags down your credit score. When looking for a home &/or refinancing, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.

   By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only – not the final – but it does help you figure things out

   Good luck to you.