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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 DETAILS & ELIGIBILITY

  • 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. 

    • Must be low income. Gross annual income does not exceed 80% of the county median income:

 

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

Still have questions about the FIRST-TIME HOMEBUYER ASSISTANCE PROGRAM? Contact us today! 

 


For the Week Ending January 4, 2019


 

Please enjoy this quick update on what happened this week in the housing and financial markets.

 

 

December's private payroll saw its biggest monthly increase in nearly 2 years, suggesting sustained strength in the labor market despite ongoing financial market volatility.
Weak performance and volatility in stocks have driven investors to the safety of bonds. As yields fall, mortgage rates are likely to drop along with them.
A dip in consumer confidence shows households may be worried about the economy. If the economy slows, mortgage rates could benefit further.

 

Home prices are still rising, albeit at a slower pace than we've recently seen. Prices were up 5.1% nationally in November 2018 over November 2017.
Although higher mortgage rates have been blamed as a factor for a slowdown in rising home prices, recent rate drops could reverse that trend.
Home equity, currently nearing $15 trillion, has surpassed its prior 2006 "housing bubble" peak by over $1 trillion. This could help expand options for current homeowners.

Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.


Schedule C is the form used in your federal tax returns that reports income you've earned when you are self-employed or are paid via 1099 (as opposed to a W2).

With part-time gigs and side hustles like ride-sharing, freelance work or consulting, blogging, house-sitting and dog walking you will receive a 1099 at tax time for the money those jobs earned you.

Because that income is reported differently and can have expenses written off against it, we need to take a closer look at your returns to determine what your actual qualifying income is. We also need to show a 2-year history of that income in order to count it towards the income you can use to qualify for a mortgage.

Therefore, in addition to the regular documentation needed, we also need all pages of your last 2 years' tax returns.

For more details on the mortgage process and documentation, listen to episode 6 of Erin's MortgageCast podcast.

 

Additional Resources


Are you a first time home buyer?

Consider downloading our FREE homebuying guide specifically for those new to the process. It's packed with useful information, checklists and tip sheets to get you off on the right foot.


Are you ready to take the next step?

It's time to get pre-approved with Erin the Expert!

 

 

 

 


[Interactive] HELOC vs. Cash-Out

Jan 3
7:08
AM
Category | General

We may not be comparing real apples and oranges, but we’re coming pretty close in the home financing industry. And if you’re at all interested in using your home’s equity to access cash, then this comparison is for YOU! 

There are two common ways to get cash from your home—a Home Equity Line of Credit (HELOC) or a cash-out refinance. 

In the current environment, many people want to keep the great interest rate they already have on their home loan, so they automatically choose a HELOC over a refinance. But wait—there’s a big difference that can make the benefits hard to compare at a glance. HELOCs have adjustable interest rates, whereas most home loans are fixed.

So, is it better to use a Home Equity Line of Credit or to do a "cash out" refinance despite a higher interest rate? Find out by watching our helpful interactive video here and by using our comparison calculator.

And, if you’re interested in exploring your options more, please reach out. We are happy to help! Fill out the form below and one of our loan officers will be in touch shortly!


Over the past few years, two trends have emerged in the housing market:

  1. Home renovations have shot up

  2. Inventory of homes available for sale on the market has dropped

A ‘normal’ housing market is defined by having a 6-month supply of homes for sale. According to the latest Existing Home Sales Report from the National Association of Realtors, we are currently at a 4.4-month supply.

This low inventory environment has many current homeowners worried that they would be unable to find a home to buy if they were to list and sell their current houses, which is causing many homeowners to instead renovate their homes in an attempt to fit their needs.

According to Home Advisorhomeowners spent an average of $6,649 on home improvements over the last 12 months. If that number seems high, it also includes homeowners who recently bought fixer-uppers.

A new study from Zillow asked the question,

“Given a choice between spending a fixed amount of money on a down payment for a new home or fixing up their current home, what would you do?”

Seventy-six percent of those surveyed said that they would rather renovate their current homes than move. The results are broken down by generation below.

Are Homeowners Renovating to Sell or to Stay? | Keeping Current Matters

More and more studies are coming out about the intention that many Americans have to ‘age in place’ (or retire in the area in which they live). Among retirees, 91% would prefer to renovate than spend their available funds on a down payment on a new home.

If their current house fits their needs as far as space and accessibility are concerned, then a renovation could make sense. But if renovations will end up changing the identity of the home and impacting resale value, then the renovations may end up costing them more in the long run.

With home prices increasing steadily for the last 6.5 years, homeowners have naturally gained equity that they may not even be aware of. Listing your house for sale in this low-competition environment could net you more money than your renovations otherwise would.

 

If you're thinking about renovating, contact us today or visit out Renovation Page for more information. 


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