With the FHA 203K, you have options

Most mortgage loan programs require a property to be in sound condition with no structural defects or required repairs.

Not the FHA 203k. It's made for homes needing anything from a light spruce up to major repairs, improvements or new additions.

Combine Purchase and Improvements:

The 203k loan covers your purchase price and the cost of improvements. The proposed work must be supported by a "value upon completion" appraisal. You can save by financing renovation costs into the original mortgage rather than racking up credit card bills or dipping into reserve savings later.

Create the Perfect House:

If you're having trouble finding the right house in the right location, the 203k is the perfect solution. Just take a well located home, add your own personalization and improvements, and make it "just right."

Determine Your Eligibility:

 As with the regular FHA program, credit requirements vary yet can be more flexible than with conventional financing. There are no income limits or first time buyer status requirements.

Minimize Out of Pocket Costs:

The 203k can be obtained with as little as a 3.5% down payment. Gifts can be used, sellers can contribute toward closing or costs can be rolled into the loan amount right along with your pre-paid taxes and insurance.

Applying for the 203k requires more work than other loans, but given all the advantages, it is a great option to consider. If you want to learn more, reach out, and we'll work together to get you started today.

 

If you're shopping for your first home loan, you've come to the right place. Here's a quick primer to explain types of purchase loans and the programs you can use to access them. Some of the programs can be particularly helpful for first time homebuyers, especially if you haven't yet built a strong credit history or large savings account.

The right mortgage loan program can get you into a home faster and help you optimize your home investment. Here’s information on popular first time homebuyer options.

When you compare loan programs, consider:

1. Purpose (purchase, purchase and rehab, or construction)

2. Requirements (including down payment amounts, income and credit scores)

3. Allowances (such as non-resident co-signers or gifts toward down payment)

4. Sponsors (government agency or private)

Purchase Loans
With a purchase loan, you enter a contract to purchase an existing home and complete an application for a mortgage. As your lender, we will go through the process of verifying your income, assets and credit, while also confirming the value of the home through an appraisal.The money is transferred to the seller at closing.

Construction Loans
As the name suggests, a construction loan funds a home that has not yet been completed. After all permits and contracts are approved, we will advance money to the home builder on a set schedule, following each step of the construction process. After the home is completed, you will pay off a simple construction loan by refinancing it to a regular mortgage loan. Construction-to-permanent loans make this transition automatically.

Purchase & Rehab Loans
These loan programs provide funds for both the purchase of the property and costs for repairs, upgrades or expansion. The property’s value is appraised based on the planned improvements.

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VA Home Loans 

VA loans are a special type of home mortgage reserved for active military members and veterans. These home loans are guaranteed by the U.S. Department of Veterans Affairs and offered by participating approved lenders. VA loans allow eligible veterans and active military personnel to realize their home buying dreams and help existing VA homeowners with money-saving refinance options.

Purpose:

• Purchase or Construction

Requirements:

• Available only to veterans or active-duty members of the U.S. Armed Forces
• High safety standards for purchased property (such as no peeling paint or missing handrails)

Benefits*:

• $0 down payment
• No monthly mortgage insurance
• Flexibility in qualification (credit scores, cash-on-hand)
• Higher maximum loan amounts
• Higher debt to income ratios

*Benefits vary based on service history and eligibility.

Allowances:

• Financing available for eligible closing costs
• Can be assumed by another approved veteran. In this scenario, the buyer takes over the existing loan from the seller, accepting the same terms and paying the difference between the loan balance and the purchase price. The difference can be financed with a second loan.

Sponsor:

• U.S. Department of Veterans Affairs (VA)

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USDA Home Loans 

USDA loans are designed to encourage rural land development and growth in rural areas. They were long thought of as just for farmers, but the program has been expanded in recent years to give more people looking to purchase or refinance in a rural area access to the incredible benefits offered by these loans.

Purpose:

• Purchase, Purchase and Rehab, Construction

Requirements:

• Must fall in an area designated as “rural” by the USDA, as shown in this property eligibility map
• Maximum loan limits dependent on area
• Owner-occupancy required
• Cannot be income-producing
• Income up to 115% of the area median income

Benefits:

• $0 down payment
• Flexible credit eligibility
• Reduced mortgage insurance

Allowances:

• Financing available for eligible closing costs
• Gift money, grant money and seller contributions allowed

Sponsor:

• United States Department of Agriculture (USDA)

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FHA Home Loans 

FHA loans are insured by the Federal Housing Administration. These loans are designed to help first-time homebuyers and experienced homeowners alike by providing them with a low down payment option. FHA mortgage insurance serves as protection for lenders in the event of a homeowner defaulting on their home loan.

Purpose:

• Purchase or Purchase and Rehab (FHA 203K Program)

Requirements:

• Mortgage insurance required for life of loan
• Maximum loan limits dependent on area

Benefits:

• Credit and qualification flexibility
• 3.5% down payment
• Higher maximum loan amounts than Federal Housing Finance Authority (FHFA) conforming limits in some areas

Allowances:

• Seller contributions and gift money allowed

Sponsor:

• Federal Housing Administration (FHA)

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Conventional Home Loans 

Purpose:

• Purchase, Purchase and Rehab, Construction

Requirements:

• Maximum conforming loan limits set by the Federal Housing Finance Authority (FHFA)

Benefits:

• Down payments as low as 3%
• Fixed rate and adjustable rate mortgages available
• Available for 1-4 family property and primary occupancy, secondary occupancy or investment
• Mortgage insurance required only while loan is more than 80% of the home’s value

Allowances:

• Seller contributions and gift money allowed

Sponsor:

• Fannie Mae; Freddie Mac; private lenders including independent banks, credit unions or other mortgage lenders

Special Conventional Programs Include the following:

#1 Fannie Mae Homestyle Renovation Loan

Purpose:

• Purchase and Rehab

Requirements:

• Maximum conforming loan limits set by the Federal Housing Finance Authority (FHFA)

Benefits:

• Purchase and cost of renovation combined into one loan
• Renovation can be simple refresh (paint and flooring), major repairs or luxury upgrades
• Flexibility of a conventional loan
• Cancellable mortgage insurance

Allowances:

• Seller contributions and gift money allowed

Sponsor:

• Fannie Mae

#2 Fannie Mae HomeReady

Purpose:

• Purchase

Requirements:

• Maximum conforming loan limits set by the Federal Housing Finance Authority (FHFA)
• Homeowner education program
• Income 80% or lower than area’s median income
• Primary Residence

Benefits:

• 3% down payment
• Higher debt-to-income ratios
• Flexible credit eligibility
• Flexibility of a conventional loan
• Cancellable mortgage insurance

Allowances:

• Seller contributions, grants and gift money
• Non-occupant co-borrowers
• Rental property payments considered as income

Sponsor:

• Fannie Mae

#3 Freddie Mac Home Possible

Purpose:

• Purchase

Requirements:

• First time home buyer (at least one borrower)
• Income 80% or lower than area’s median income

Benefits:

• 3% down payment
• Flexibility of a conventional loan
• Cancellable mortgage insurance

Allowances:

• Non-occupant co-borrowers
• Mulitple available down payment sources, including family, employer-assistance, secondary financing and sweat equity

Sponsor:

• Freddie Mac

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Multifamily 

Purpose:

• Purchase or Purchase and Rehab

Requirements:

• Owner occupancy

Benefits:

• 5% down payment for 2- to 4-unit properties

Allowances:

• Program dependent (conventional, HomeReady or HomeStyle Renovation)

Sponsor:

• Fannie Mae

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JUMBO Home Loans 

Purpose:

• Purchase, Purchase and Rehab, Construction

Requirements:

• Must fall within allowable loan and down payment amounts

Benefits:

• Loan limits beyond those placed by the government-sponsored agencies
• Down payments as low as 5%, but typically higher with greater loan amounts
• Fixed rate and adjustable rate available
• Any type of residential property and occupancy
• Cancellable mortgage insurance

Allowances:

• Seller contributions and give money allowed

Sponsor:

• Private lenders including independent banks, credit unions or other mortgage lenders

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State & Local Loan Programs
Contact us to learn of any state or locally sponsored loan programs for first time buyers.

Bottom Line
We are happy to review your options with you. Let's start a converstaion even if you're months away from your home purchase. It can pay to start early! 888-616-9885

 

 

We are excited to introduce you to Greenway's Community Lending Program, an incentive-based opportunity for eligible properties created to help underserved customers in achieving their dreams of homeownership.

Community Lending Program Highlights

1. Primary Residence

2. Purchase, Rate & Term, Cash-Out Refi

3. Fixed Rate (15, 20 & 30 years), Home Possible/HomeReady (30-year fixed rate only)

4. Not Restricted to First-Time Buyers or Specific Income Levels

THE FINE PRINT

1. Min Credit Score 620 (Purchase & Refi)

2. Min 640 credit score; LTV 95.01 to 97% / CLTV 95.01-105% (where permitted under Agency guidelines)

3. Program eligibility is geographically based and covers a broad economic spectrum

4. No Income limit except specified for the HomePossible or HomeReady products

5. Eligibility requirements, exclusions and other terms and conditions apply

 

Please feel free to contact us with any questions, to validate a property or to see if you (or your clients) qualify. 888-616-9885.

 

 

Navigating the housing market in 2024 has become increasingly complex, marked by soaring rates, dwindling inventory, and skyrocketing home prices. For first-time homebuyers, saving for a hefty down payment in such circumstances can seem impossible. In February alone, the housing market in New Jersey felt the weight of these shifts, with home prices surging by an astonishing 14.3% year-over-year, while homes sold saw a 1.9% decline, and available listings plummeted by 11.5%, according to data from Redfin.com.

Amidst these challenging circumstances, finding your footing as a first-time homebuyer can seem difficult at times. However, Greenway Mortgage offers a variety of New Jersey First-time Homebuyer programs to help you out when buying a home.

Are you ready to take a closer look at some of these programs?

#1: The Monmouth County, New Jersey First-Time Homebuyers Assistance Program

The Monmouth County, NJ First Time Homebuyer Assistance Program is designed to provide financial assistance to low-income families to purchase an affordable home in the form of a deferred payment second mortgage loan in an amount not to exceed $10,000 for down payment and closing costs (only).

Program Highlights:

• MUST BE a resident of Monmouth County for 1 YEAR before applying for a grant.
• ALL applicants must complete a pre-purchase housing counseling course and provide a certificate of completion with the First-Time Homebuyer application.
• MUST BE an individual(s) that never owned a home (except if an applicant has previously owned a home, he/she still may qualify if they meet 1 or more of the following criteria:
  • An individual that has not owned a home in 3 years prior to receiving home assistance.
• An individual who is a single parent even if the individual owned a home with his or her spouse or resided in a home owned by the spouse
• An individual who is a displaced homemaker even if as a homemaker the individual owned a home with his or her spouse or resided in a home owned by the spouse.

The Fine Print:

• Property MUST be the principal residence
• Applicant must purchase a house located in the participating municipalities ONLY.
• Fist-time homebuyer can only purchase a 1-4 family property or condominium unit.
• Housing unit cannot exceed the max purchase price of $337,000 for 1-family & condominium, $432,000 for 2-family unit, $532,000 for a 3-family unit and $648,000 for a 4-family unit.
• Mobile homes are not eligible for purchase using First-time Homebuyer program funds
• Co-signor not allowed
• Eligibility requirements, exclusions and other terms and conditions apply.

For more information and homebuyer eligibility on the Monmouth County, New Jersey First-Time Homebuyers Assistance Program click here.

#2: New Jersey Conventional Down Payment Assistance Program (DPA)

The state of NJ offers a conventional version of their down payment assistance program for first-time homebuyers. Qualified borrowers can receive $15,000 to be used towards down payment and closing with affordable mortgage insurance premiums that follow conventional mortgage guidelines in certain NJ counties*.  All other counties will remain at $10,000.

Program Highlights:

• 30-year, Fixed-Rate Conventional Loan
• Affordable Mortgage Insurance Premiums
• $15,000 for Down Payment and Closing Costs*

County List:

• *$15,000 applies to: Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, and Union. Effective November 1, 2022.
• $10,000 applies to: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem, Sussex, Warren.

The Fine Print:

• First-time buyers are borrowers that have not had an ownership interest in their primary residence during the previous three years
• DPA is a $15,000 forgivable loan with no interest and no monthly payments. Forgiven after 5 years as primary residence (While grant funds are available)
• Single-Family Properties and Condos, Owner Occupied, Primary Residence in NJ, Minimum FICO 620
• Income limits are determined by the county of the purchase property but must not exceed 80% of Area Median Income. Please reference the Freddie Mac HFA Income Limits for additional details
• Eligibility requirements, exclusions and other terms and conditions apply.

For more information and homebuyer eligibility on the NJ Conventional DPA Program click here.

#3: New Jersey First-Generation Down Payment Assistance (DPA) Program

This program aims to provide significant assistance for down payments and closing costs to homebuyers, offering a generous $7,000 contribution to those who qualify. When paired with an NJHMFA First Mortgage and the Down Payment Assistance Program, eligible homebuyers can receive up to $22,000 in assistance! The amount varies depending on the county where the property is located.

Program Highlights:

• Owner occupied, primary residence in NJ
• 30-year Fixed-rate mortgage options available for home purchases only
• $22,000 for down payment & closing costs when paired with DPA in certain NJ counties

The Fine Print:

• Must be a first-generation homebuyer
• Min credit score 620; must meet DTI requirements
• Must be paired with an NJHMFA first mortgage loan and the DPA; DPA is a forgivable loan with no interest and no monthly payments
• Single-Family, Condo, Townhome, Co-ops, 2-4 units
• Ineligible for Police & Fireman Program
• Eligibility requirements, exclusions and other terms and conditions apply.

For more information and homebuyer eligibility on the NJ First-Generation DPA Program click here.

Bottom Line:

If you’re a New Jersey homebuyer, take advantage of these homebuying programs so you can achieve your homeownership goals while minimizing your costs. To learn more about these programs and determine your eligibility, click on the links provided or contact us directly at 888-616-9885. We're here to assist and answer any questions you may have.

Click here to connect with a Greenway Mortgage Loan officer today.

 

Exciting news. The new enhanced HomeReady program is increasing access to homeownership!

HomeReady® offers an ideal mortgage solution for both first-time and repeat buyers with a low-down payment and flexible financing. To assist very low-income purchase borrowers, Greenway Mortgage now offers a $2,500 credit applicable to down payment and/or closing costs.

The New HomeReady® Program Highlights

• Borrowers must have a qualifying income of less than or equal to 50% of the applicable area median income of the property’s location.

• The $2,500 credit must be provided upfront to the borrower and can be applied towards down payment and/or closing costs, including mortgage insurance premiums.

Ideal For:

• Very low-income individuals

• First-time or repeat homebuyers

• Those with limited cash for down payment

• Supplemental boarder or rental income

What You Need to Know

While HomeReady® offers incredible benefits, it's essential to understand the details:

• Homeownership Education: If all occupying borrowers are first-time homebuyers, then at least one borrower is required to take homeownership education, regardless of LTV.  It’s a small investment in knowledge that can yield significant rewards in your homeownership journey.

• Act Now: The $2,500 credit is only available until February 15, 2025. Don't miss out on this limited-time opportunity to take advantage of the HomeReady® program.

Eligibility requirements, exclusions and other terms and conditions apply.

Embrace the Journey with HomeReady®

Are you ready to take the next step towards homeownership? Reach out today to see if you qualify or to get pre-approved. The Greenway Mortgage Team is here to guide you every step of the way on your journey to owning your dream home.

Helpful Resources

• Roadmap to Mortgage Pre-Approval
• Homebuyer Guide
• Get pre-approved
• Apply Now – Full Mortgage Application