Family Home Funding Corp. is one of the leading lenders in New Jersey for FHA loans. If you are in Kinnelon, Hackensack, Clifton, Totowa, Saddle Brook, Elmwood Park or surrounding areas in the state, contact us to review your options and get the answers to all of your questions. This can be done by phone or we can arrange to come to your home and speak with you and any other family members.
What are FHA Loans?
In 1934, the Federal Housing Administration (FHA) was established to help improve and stabilize the housing market as well as to protect FHA approved lenders from borrower default. The FHA makes it easier for a wide range of borrowers to qualify for loans by insuring the loans made by lenders. According to Hud.gov, FHA currently insures over 8 million single-family mortgages, 12,000 multi-family mortgages, over 3,700 residential care facilities mortgages, and around 100 mortgages for hospital facilities. It has grown to become a useful tool in the financial industry that has helped millions of Americans, and it could help you too!
Family Home Funding Corp offers FHA loans throughout Kinnelon and the surrounding New Jersey communities, and even Florida!
The FHA offers programs for a number of borrower needs including purchases, refinances, reverse mortgages, and even renovation projects (FHA 203k Program). FHA loans tend to be one of the easiest loans to qualify for, which has led to an increased popularity amongst first time home buyers. Borrowers with existing FHA loans are able to take advantage of refinance programs including both cash-out refinance and streamline refinance options.
FHA loans tend to be easier to qualify for because of their low down payment and relaxed credit requirements. It is possible for a borrower to qualify with a credit score of 580 and a down payment of only 3.5 percent. The FHA even allows the down payment to be gifted from a family member if you do not have the cash on hand. Let’s look at some of the general requirements for an FHA loan.
FHA Loan Eligibility
- Credit Score – A credit score of 580 is generally required. If your credit score is between 500 and 579 you could potentially qualify with a larger down payment.
- Income Requirements – A maximum debt-to-income ratio of 43 percent is standard. In some cases, a debt-to-income ratio of up to 56% percent can be approved.
- Down Payment – A minimum down payment of 3.5 percent of the purchase price is required.
- Property Requirements – The property being purchased must meet certain safety, security, and soundness (structural integrity) requirements.
With an FHA loan, two types of mortgage insurance premiums (MIP) will need to be paid. One premium is paid up front while the other is a recurring monthly premium. The upfront mortgage premium is 1.75 percent of the loan. The borrower can either pay this at closing or roll the premium into the mortgage itself. The recurring premium is an annual mortgage insurance premium which is paid each month. This particular premium is based on loan-to-value (LTV) ratio, loan amount, and length of the loan and will be between .80 percent and 1.05 percent.
FHA Loan Limits in New Jersey
The maximum loan amount available for an FHA loan is limited by county.
| County | Single-Family | Duplex | Triplex | Fourplex |
|---|---|---|---|---|
| Atlantic County | $316,250 | $404,850 | $489,350 | $608,150 |
| Bergen County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Burlington County | $402,500 | $515,250 | $622,850 | $774,050 |
| Camden County | $402,500 | $515,250 | $622,850 | $774,050 |
| Cape May County | $414,000 | $530,000 | $640,650 | $796,150 |
| Cumberland County | $314,827 | $403,125 | $487,250 | $605,525 |
| Essex County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Gloucester County | $402,500 | $515,250 | $622,850 | $774,050 |
| Hudson County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Hunterdon County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Mercer County | $345,000 | $441,650 | $533,850 | $663,450 |
| Middlesex County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Monmouth County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Morris County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Ocean County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Passaic County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Salem County | $402,500 | $515,250 | $622,850 | $774,050 |
| Somerset County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Sussex County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Union County | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| Warren County | $372,600 | $477,000 | $576,550 | $716,550 |
Get Pre-Approved for an FHA Loan
Whether you are looking to refinance an existing FHA loan for a lower rate or have dreams of purchasing your first home, Family Home Funding Corp is here to assist you. As a local lender in Kinnelon, we have the knowledge and expertise to assist borrowers with the many FHA loan programs available throughout the state of New Jersey. For more information on FHA loan programs or to see if you may qualify, contact us today!
Although we are located in Kinnelon, New Jersey, we do business throughout the entire state of New Jersey, including surrounding areas such as Butler NJ, Wayne NJ, Paterson NJ, Haledon NJ, Garfield NJ. We also are licensed and work in the states of Pennsylvania and Florida.
