FHA loans offer an advantage to first time home buyers that commercial banks in New Jersey cannot. Most commercial banks require a minimum 10% down payment. On a $300,000 house that would translate into a $30,000 down payment. However, FHA loans allow for a 3.5% down payment which would translate into only $10,500 on a purchase of $300,000. Due to this lowered percentage, people are able to save more money on their down payment. This low down payment, and relaxed credit requirements, make FHA Loans a great option for first time home buyers.
Benefits of FHA Loans::
- Credit requirements are less stringent than conventional loans
- 100% of the money for a purchase can come from a gift for an FHA loan
- Closing costs may be gifted as well
- 6% of the closing costs can come from a seller contribution allowing greater flexiblity to structure a purchase transaction
- Use of alternative credit is allowed to complement a credit history that may be bruised
- FHA loans are available up to $729,000
- Condominium financing is available with only 3.5% down
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 state of Florida.