FHA Loans

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 to 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. Since the establishment of the FHA, over 34 million home loans have been insured. Currently, 4.8 million home loans are backed by the FHA. Family Home Funding offers FHA loans throughout Kinnelon and the surrounding New Jersey communities.

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 50% 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 $636,150 $814,500 $984,525 $1,223,475
Burlington County $379,500 $485,800 $587,250 $729,800
Camden County $379,500 $485,800 $587,250 $729,800
Cape May County $414,000 $530,000 $640,650 $796,150
Cumberland County $275,665 $352,950 $426,625 $530,150
Essex County $636,150 $814,500 $984,525 $1,223,475
Gloucester County $379,500 $485,800 $587,250 $729,800
Hudson County $636,150 $814,500 $984,525 $1,223,475
Hunterdon County $636,150 $814,500 $984,525 $1,223,475
Mercer County $345,000 $441,650 $533,850 $663,450
Middlesex County $636,150 $814,500 $984,525 $1,223,475
Monmouth County $636,150 $814,500 $984,525 $1,223,475
Morris County $636,150 $814,500 $984,525 $1,223,475
Ocean County $636,150 $814,500 $984,525 $1,223,475
Passaic County $636,150 $814,500 $984,525 $1,223,475
Salem County $379,500 $485,800 $587,250 $729,800
Somerset County $636,150 $814,500 $984,525 $1,223,475
Sussex County $636,150 $814,500 $984,525 $1,223,475
Union County $636,150 $814,500 $984,525 $1,223,475
Warren County $372,600 $477,000 $576,550 $716,550

Get Pre-Approved for a 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.