Now home buyers can dream even bigger! The New Jersey Conventional Down Payment Assistance (DPA) Program has increased to $15,000 for properties in certain New Jersey counties*. This program was created to provide first-time home buyers a flexible and affordable option for purchasing a home.

What Does This Change Mean for Home Buyers?

Now, qualified clients can receive $15,000 to be used towards the down payment and closing with affordable mortgage insurance premiums that follows conventional mortgage guidelines. 

About The NJ Conventional DPA Program:

• 30-year, Fixed-Rate Conventional Loan 
• Affordable Mortgage Insurance Premiums
• $15,000 for Down Payment and Closing Costs*

Do You Qualify for the New Jersey Conventional Down Payment Assistance Program?

• First-time buyers are borrowers that have not had an ownership interest in their primary residence during the previous three years.

• DPA is a $15,000 forgivable loan with no interest and no monthly payments. Forgiven after 5 years as primary residence (While grant funds are available).

• Single-Family Properties and Condos, Owner Occupied, Primary Residence in NJ, Minimum FICO 620

• Income limits are determined by the county of the purchase property but must not exceed 80% of Area Median Income. Please reference the Freddie Mac HFA Income Limits for additional details.

County List:

• *$15,000 applies to: Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, and Union. Effective November 1, 2022.

• $10,000 applies to: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem, Sussex, Warren.

Bottom Line

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.

Resources:

• NJ Conventional DPA Program

• Get a Free Pre-Approval

• Contact Us

• First-Time Home Buyer Resources

• Buying Your First Home

•  First-Time Home Buyer EBOOK

Reverse mortgages, available to qualifying homeowners ages 62+, generally come with no limits on the use of the funds.

Reverse mortgage funds are first used to pay any liens on the home, including a regular mortgage or home equity loan. In some cases, a portion of proceeds is withheld or set aside to pay taxes and insurance.

Remaining funds often:

• Offset day-to-day living expenses.
• Cover emergency expenditures, such as car or home repairs.
• Pay for medical costs.
• Provide for in-home care, allowing the owner to remain in their own home longer.

Sometimes, homeowners use a reverse mortgage just to pay off their existing loan. They do not access the remaining funds at all, but they remove the strain of a monthly mortgage payment* from their budget and increase their cash flow.

Some seniors use reverse mortgages to purchase a new home without ever incurring a monthly payment.*

Remember that a reverse mortgage is a loan that will be repaid after your death, after you permanently leave your home, or after the sale of your home. Neither you nor your heirs will be responsible for repaying more than the value of your home at sale.

How Do You Qualify for a Reverse Mortgage?

To be eligible for a reverse mortgage, you must be age 62 or older. You must either own your home outright, or the balance must be low enough that it can be paid off at closing. Borrowers are required to receive free or low-cost information from an HECM counselor prior to obtaining the loan. The goal of the counseling session is to make sure that potential borrowers fully understand and are comfortable with the process and the loan terms.

The ability to pay property taxes, insurance, etc. is determined prior to approval. Single-family homes, condos, townhouses, manufactured homes built after June 1976, and 2-4 unit properties are eligible for a reverse mortgage. A co-op does not qualify. The homeowner is still responsible for property taxes, homeowners insurance, upkeep and any relevant HOA fees.

Contact Us To See If You Qualify!

If you would like to explore the opportunities a reverse mortgage may present for you or your family, contact us!

Let's look beyond the Fed rate increase. As expected, the Fed raised policy rates by 0.75% at their November meeting. That's not the most interesting thing.

Investors were hoping the Fed would signal it's ready to ease off the current pace of rate hikes. And that's what happened. The Fed's statement hinted the Committee may pull back to allow time for the economy to feel the impacts of changes, though it's still committed to using rate increases to tame inflation.

As usual, there's no need to assume mortgage rates will rise the same amount as the Fed's rate boost. Other market forces are also at play, and rates often move before the Fed acts, in anticipation of their changes.

What should you do if you want to purchase or access cash from equity?

If this is your time to make a home financing move, don't let rates stop you.

In some areas, bidding wars have stopped, sellers have adjusted their prices and buyers are back in control. The payment to make an acceptable offer on the home you want may not be much different than if you had to pay over asking prices before.

Let's find a way to work within the framework of the current environment. Options like hybrid ARMs, buydowns and HELOCS can help.

Background on the Fed:

• The Federal Reserve Board (the Fed) controls the federal funds rate and discount rate, which are charges for overnight loans from bank to bank or from the Fed to member banks.

• The rate was lowered to near zero in March 2020 in response to the pandemic. These historic measures are now being reversed.

• This is the sixth increase this year.

Don't let interest rates hold you back from making a move or accessing cash. The team at Greenway Mortgage is happy to help you navigate this market. We're still closing loans every day! Reach out if you have any questions.