If you’re a first-time home buyer looking to purchase a home, then you’re familiar with the high ticked price tags these homes come with. They have certainly skyrocketed. It’s common to feel discouraged and to feel as if homeownership is out of reach these days, but we’ve got good news. Luckily, there’s a wealth of homeownership programs in New Jersey that help home buyers secure a mortgage, make a down payment, cover closing costs, and more.
The state of New Jersey now offers a conventional version of their down payment assistance program for first-time buyers. Now, qualified clients can receive $10,000 to be used towards the down payment and closing with affordable mortgage insurance premiums that follows conventional mortgage guidelines.
Here’s Some Information About the New Jersey Conventional DPA Program:
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30-year, Fixed-Rate Conventional Loan
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Affordable Mortgage Insurance Premiums
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$10,000 for Down Payment and Closing Costs
Do You Qualify for the New Jersey Conventional Down Payment Assistance Program?
It may seem that this program is solely for first-time homebuyers, but the restrictions are somewhat flexible. First-time home buyers are borrowers that have not had an ownership interest in their primary residence during the previous three years. In addition, borrowers need to fall under certain income limits and meet a minimum credit score requirement of 620.
- DPA is a $10,000 forgivable loan with no interest and no monthly payments. Forgiven after 5 years as a primary residence (While grant funds are available).
- Single-Family Properties and Condos, Owner Occupied, Primary Residence in NJ.
- Income limits are determined by the county of the purchase property but must not exceed 80% of the Area Median Income. Please reference the Freddie Mac HFA Income Limits for additional details.
- Eligibility requirements, exclusions, and other terms and conditions apply.
Bottom Line
Greenway Mortgage is proud to offer this program to first-time homebuyers in New Jersey. We are here to help make homeownership a reality for you. Reach out today to learn more or to see if you qualify for the NJ Conventional Down Payment Assistance Program.
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Green mortgages do exist, but what exactly are they? Green mortgages are an environmentally friendly type of home loan. How do you make a mortgage environmentally friendly; you might ask? Green mortgages, also known as Energy Efficient Mortgages (EEM), are a special type of loan designed to make your home more energy efficient while saving you money at the same time. Interesting, right?
How Do Green Mortgages Work?
These loans help you borrow money to pay for energy efficient upgrades to your home. The cost can be added into the mortgage or rolled into your current mortgage through an energy efficient refinance to allow you to make improvements to your current home. It’s an affordable way to make upgrades that may be costly up front, but in the long run will save you money.
What Can You Use Energy Efficient Mortgages Towards?
Whether you're a homeowner looking to improve your current home or are shopping for a home to purchase, you can use an EEM to make energy-efficient improvements. Changes you make to your home can improve energy efficiency and lower heating/cooling costs. An important bonus: These improvements can add to the value of your home.
- Installing Double-pane windows
- Replacing outdated air ducks
- Replacing old insulation
- Tankless water heaters
- High Efficiency Furnace or Air Condition System
Can a Green Mortgage Reduce Your Home’s Carbon Footprint?
According to the Center for Climate and Energy Solutions, the average U.S. family can spend $2,000 a year on energy bills, which means reducing your home energy use is the single most effective way to save money and reduce your home’s contribution to climate change. In fact, here are some interesting statistics to think about:
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You can save 10% on energy costs by insulating, sealing, and weather-stripping the cracks around your windows and doors.
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By sealing and insulating the ducts in your heating system, you can improve efficiency by as much as 20%.
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According to the Department of Energy, energy loss from outdated windows accounts for nearly 25% of the annual heating and cooling costs for the average American home.
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New energy-efficient heating or cooling equipment can cut your energy use by 20% or more.
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The Environmental Protection Agency reports that you could save roughly $180 a year by using a programmable thermostat.
Overall, EEM’s allow families to save money, help the environment and help you to live more comfortably. Energy efficient homes tend to be cooler in the summer and warmer in the winter, cost less to maintain and have lower utility costs.
What Types of Green Mortgages does Greenway Offer?
Greenway Mortgage is proud to introduce our Green Mortgage Program that helps homeowners add energy efficient features to their home. Take a look below at the two types of EEM’s we offer:
FHA Energy Efficient Mortgage
This type of EEM provides additional financing that equals the lesser of 5% of the home’s appraised value, 115% of the median area price of a single-family dwelling, or 150% of the national conforming mortgage limit in the area. Click here to view the current FHA Loan Limits.
Contact Greenway Mortgage for more information and to see if you qualify.
VA Energy Efficient Mortgage
Military members, veterans, and their families who want to go green in their homes can do so with a VA Energy Efficient Mortgage. If the borrower is planning on making energy-efficient upgrades in the home, they have six months following the closing of their loan to complete those projects. If the borrower hopes to purchase a home that is already energy-efficient, the lender may increase the loan by as much as $6,000, so long as it meets specific energy-efficient standards.
Who Is an EMM Designed For & What Are Some Benefits?
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Anyone can qualify for an energy efficient mortgage. However, the lender must validate that your home is an energy efficient property or that the improvement projects you want to pursue to make it an energy-efficient property are cost-effective.
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An EEM can benefit those who hope to make a competitive offer on a house. Not only will the financing fund the energy efficient upgrades, but it can increase their offer price to beat out other buyers.
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If you’re someone who intends to own your home for many years, EMMs make sense as you’ll be able to reap the savings benefits.
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If you want to increase the value of your home energy-efficient upgrades are key. Some home buyers will pay more for a house with green updated features.
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If you’re a homeowner with an energy-efficient home, you may be eligible for tax credits and rebates. Consult with your tax advisor for more information.
Bottom Line
If energy efficiency is important to you, a Green Mortgage may be something to think about as it reaps many homeowner benefits. For more information and to see if you quality for our Green Mortgage Program reach out to the experts at Greenway Mortgage.
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Introducing the Doctor Loan
One benefit of becoming a doctor is being able to take advantage of unique home financing opportunities. Greenway Mortgage's Doctor Loan is a great tool to help medical professionals who are looking to achieve the dream of homeownership.
What is the Doctor Loan?
Becoming a caregiver is not only commendable but it’s often coupled with a significant student loan burden. If you’re a resident, a recent medical school graduate, or at any stage of your career, looking to lose the lease and become a homeowner, the Doctor Loan was specially designed for professionals like you.
The Doctor Loan helps those eligible secure a mortgage with fewer restrictions than a conventional mortgage. This type of loan is much more accommodating to medical professionals and their unique circumstances. So, those years of extra schooling and training have paid off and your dream of homeownership is within reach.
What are the features and benefits of the Doctor Loan?
The Doctor Loan can help those eligible locks in lower interest rates, avoid a huge down payment and private mortgage insurance (PMI) which is standard for traditional loans. Depending on the final loan amount, eliminating the PMI can save doctors hundreds of dollars from monthly mortgage payments while pursuing medical careers.
Features & Benefits of the Doctor Loan Include:
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Loan amounts up to $2,000,000
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Low and no down payment options (Max LTV up to 100%)
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Adjustable-Rate Mortgage (ARM) options available (3/5/7/10)
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Interested party contributions allowed
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Future employment contract eligibility
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Available for Purchases and Rate & Term Refinances
Who’s Eligible for the Doctor Loan?
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Medical residents
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Physician's Assistants
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New and established doctors
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Doctor of Medicine (MD)
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Doctor of dental surgery (DDS)
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Doctor of dental medicine or surgeon (DMD)
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Doctor of optometry (OD)
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Doctor of Ophthalmology (MD)
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Doctor of osteopathic medicine (DO)
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Doctor of podiatric medicine (DPM)
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What are the specific Doctor Loan eligibility requirements?
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Single-Family Properties and Condos
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Primary Residences Only
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680 Minimum Credit Score
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Available in NJ (some counties excluded), FL, NY (some counties excluded), NC
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Eligibility requirements, exclusions, and other terms and conditions apply.
Bottom Line:
If you’re considering buying a home, especially as a new medical professional, speak with the experts at Greenway Mortgage to weigh all your options. Click here to get a free mortgage pre-approval or to speak with one of our Loan Officers today.
Are you a U.S. Veteran or an active-duty service member looking to build your own home? If so, your journey to building your dream home starts here with Greenway’s VA One-Time Close Construction Loan. This one-time close construction loan provides Veterans with a simple and affordable way to finance the perfect home all with just one application and one closing.
The Lowdown on the VA One-Time Close Construction Loan…
The U.S. Department of Veterans Affairs (VA) has loan options designed to help veterans make their dream home a reality. VA loans are issued by private lenders, like Greenway Mortgage, but backed by the VA. VA Construction Loans can help qualified Veterans finance the purchase of land and the construction of a brand-new home, all without the need for a down payment.
It may be the perfect time for you to use your VA Home Loan benefits, especially now when housing inventory is at its lowest! There’s certainly no reason to wait for your perfect home to become available on the market when we can offer you the VA One-Time Close Construction Loan.
Keep reading to learn more and to see if you qualify.
What are the Program Details for the VA One-Time Close Construction Loan?
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1 time close
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Owner Occupied (1 unit); 100% LTV
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0% down required, depending on loan size*
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680 min credit score
*Finance up to 90% of the project (purchase price + cost to construct). Eligibility requirements, exclusions, and other terms and conditions apply.
What are the Benefits of a VA One-Time Close Construction Loan?
Some key benefits include:
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Consolidate construction and purchase price for only 1 set of closing costs and fees.
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Purchase a tear down property.
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If you already own an empty property and want to build a home, tear down, and put up a new one, or do a major renovation on an existing home.
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Pay just interest-only payments during construction.
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Avoid requalification post-construction.
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Simple & flexible draw process with no set schedule.
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Use qualified licensed builder of your choice (self-build not allowed)
What are the Alternatives to a VA One-Time Close Construction Loan?
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USDA One-Time Close Construction Loan: meant for low to moderate income families who live in rural areas and also does not require borrowers to put any money down. Click here to learn more about the USDA Construction Loan.
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FHA One-Time Close Construction Loan: this is another option for borrowers who might not have any ties to the military. Click here to learn more about the FHA Construction Loan.
Bottom Line
If you’re looking for a VA Construction Loan, then you’ve come to the right mortgage lender. We are proud to provide veterans and active-duty military members with financing to build the home of their dreams. Our Loan Experts will work with you from day one to ensure a smooth process. Let’s build the home of your dreams together!
How Do Construction Loans work, you might ask?
Overall Process:
- Builder Approval
- Project Approval (appraisal, plans & specs, costs from builder)
- Borrower Credit Approval
- Initial Draw at Close (up to 50K) to get a project started and/or reimburse for any materials already purchased
Construction Period
- Post close welcome call from the construction management company
- Inspections are done as work is put in place, then checks for draws issued to builder and borrower
- Once work is done, the loan is modified into a standard 30-year fixed loan at present market rates (vs. the interest-only loan in place during construction). Borrowers can pay down the balance on a converted loan in the event other property they owned has been sold in the meantime. No additional closing costs when the loan converts.
Specialized Features
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Stalled projects
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Modular construction
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Major renovations (projects beyond scope of renovation programs)
Remember, Choosing an Experienced Lender is Critical
A construction loan is more complex than a standard mortgage, with more moving parts and more specialized expertise required.
Greenway Mortgage has the knowledge, experience, and proven process to guide you through the construction loan process as you build your dream home. To learn more about our construction loan program and find out if you qualify, contact us to discuss your project.
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Your dream home starts here with Greenway’s USDA One Time Close Construction Loan. With 100% financing and a low minimum credit score, this program is designed to provide you flexibility and affordability, so you can build your perfect home – all with just one application and one closing.
USDA Construction Loans are rare, so if you’ve been struggling to find a lender offering one, you’ve come to the right place. Greenway Mortgage has an entire suite of Construction Loans available.
The Lowdown on the USDA One-Time Close Construction Loan…
To increase economic development in rural areas, the Federal Government created USDA loan programs. The One-Time Close USDA Construction Loan allows clients to take out a single loan for the construction of a home, combining two loans into one which simplifies the overall financing process.
The USDA Construction Loan is an affordable way to build your own home as it requires no money down*, has a competitive interest rate, and requires only one closing which saves the homebuyer a considerable amount in closing costs. For these reasons, the USDA Single Close Construction Loan is a popular option for construction projects.
What are the Program Details for the USDA One-Time Close Construction Loan?
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1 time close
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Owner Occupied (1 unit);100% LTV
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0% down required, depending on loan size*
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680 min credit score
*Finance up to 90% of the project (purchase price + cost to construct). Eligibility requirements, exclusions, and other terms and conditions apply.
What are the Benefits of a USDA One-Time Close Construction Loan?
Some of the key benefits include:
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Consolidate construction & purchase price for only 1 set of closing costs & fees
-
Purchase a teardown property
-
If you already own an empty property & want to build a home, tear down & put up a new one, or do a major renovation on an existing home
-
Pay just interest-only payments during construction
-
Avoid requalification post-construction
-
Simple & flexible draw process with no set schedule
-
Use qualified licensed builder of your choice (self-build not allowed)
What are the Alternatives to a USDA One-Time Close Construction Loan?
A USDA Construction Loan is only one of the many options for those who are interested in building their own home. And Greenway Mortgage offers them all! Some other options borrowers might want to consider include:
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VA One-Time Close Construction Loan: Tailored for veterans and individuals on active duty with the military who would like to build a new home. Click here to learn more about our VA Construction Loan.
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FHA One-Time Close Construction Loan: Helpful for borrowers who might not live in a rural area yet still want to build a new home. Click here to learn more about our FHA Construction Loan.
There is an option out there for everyone seeking to build their dream home!
Bottom Line
If you are looking to build a new home or do a major renovation on an existing home, the mortgage experts at Greenway Mortgage are here to provide you with the services you need to get the job done. With construction mortgage experts on your side, you’ll be sure to have a smooth process and in the end your dream home. Contact us today to see if you qualify or to learn more about our One-Time Close Construction Loans.
How Do Construction Loans work, you might ask?
Overall Process:
- Builder Approval
- Project Approval (appraisal, plans & specs, costs from builder)
- Borrower Credit Approval
- Initial Draw at Close (up to 50K) to get a project started and/or reimburse for any materials already purchased
Construction Period
- Post close welcome call from the construction management company
- Inspections are done as work is put in place, then checks for draws issued to builder and borrower
- Once work is done, the loan is modified into a standard 30-year fixed loan at present market rates (vs. the interest-only loan in place during construction). Borrowers can pay down the balance on a converted loan in the event other property they owned has been sold in the meantime. No additional closing costs when the loan converts.
Specialized Features
- Stalled projects
- Modular construction
- Major renovations (projects beyond scope of renovation programs)
Remember, Choosing an Experienced Lender is Critical
A construction loan is more complex than a standard mortgage, with more moving parts and more specialized expertise required.
Greenway Mortgage has the knowledge, experience, and proven process to guide you through the construction loan process as you build your dream home. To learn more about our construction loan program and find out if you qualify, contact us to discuss your project.
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