USDA Loan Limit in Toms River NJ | (888) 464-8732

The USDA Guaranteed Home Loan Program in Toms River is backed by the USDA – the United States Department of Agriculture.

It is a TRUE no money down home loan in Toms River. Many people who take advantage of this program are able to get into their homes with little to no money out of their pocket.

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BUT, there are several USDA Loan eligibility requirements in Toms River that you need to meet in order to take advantage of this home loan program.

USDA Loans in NJ Requirements Explained:

The first requirement is that you cannot be a current homeowner.

If you already own your home but are planning to sell it, then you are still eligible in Toms River! You just need to have your existing home soldBEFORE we can close the loan for your new home.

The next requirement is that your total annual household income cannot exceed the limits set by the USDA.

These income limits are based on market area and family size.

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Another requirement is that you cannot have defaulted on a USDA loan in the past.

This means that if you’ve had a past USDA loan that has gone in to foreclosure, you unfortunately aren’t eligible.

How to take advantage of USDA Loans in NJ:

To take advantage of this program, the home has to be located in an eligible rural area.

But guess what, rural does not necessarily equal country! Homes do not have to be in a country setting.

In fact, there are many areas where entire counties and cities qualify for this program. The property has to meet minimum USDA Loan property standards.

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The home must be in satisfactory condition, and this loan cannot be used to finance any sort of income producing property.

That means mini farms, and properties with farm acreage are not USDA Loans eligible.

2019 USDA Loan Eligible Areas in NJ: Map to Eligibility

usda rural development home loan Hey this is Chris the Mortgage Pro. In this video we're comparing conventional loans to FHA loans to VA loans which one's the best one? Which one's right for you? You know so many consumers are curious. Which loan is best for me? Today I want to help you figure out which one is going to benefit you and your family the most, for you a short-term and/or long-term goals because it's different for everybody. Now there are advantages to each one of these loans so some have lower interest rates, some have lower fees there's all kinds of different things to think about! Now most people have a tendency to just look at one thing. The payment! Which is cheaper? Well, it's understandable when you're buying a house you say, hey which which payment is cheaper? But, again how long you gonna be in that house? Is there PMI? Will the PMI disappear? When will it disappear? If the PMI is gonna disappear in five years butI'm gonna be here in 20 years, maybe this other loan is better a long term! So we have to look at these things as a whole. Now people ask you all the time what's today's interest rate? It's impossible to answer that question, because your finances and every person's finances are as different as fingerprints! When we look at the whole situation you have to understand that all these items, represent different risks to the lender and the higher the risk the higher the interest rate! The lower the risk for example if you put a lot more money down, obviously a lower risk right? Or if you have a higher FICO score lower risk, right? Well we have to look at these things as a whole to help you determine what interest rate you're gonna get and that also helps determine which program is right for you! Okay now it's time we're gonna get into the nitty-gritty we're gonna get into the comparison. Number one - conventional loan. A conventional loan has a minimum of a 620 FICO Score Credit score if you're not sure what a FICO score is that is your mortgage credit score. Now on an FHA loan some lenders go as low as a 500 my company goes down to a 550 the truth is nobody gets approved at 500 anyway and on a VA loan we're also looking at the same thing many lenders go to 500 company goes to 550. Okay PMI mortgage insurance and on FHA it's called MIP mortgage insurance premium now on a conventional loan what happens is it is very very dependent on what is your credit score somebody with a very high credit score might have a very low mortgage insurance payment, but if you have a 620 FICO score your mortgage insurance payment could be way high. Now on FHA FHA has pretty much standardized, here is your MIP rate remember they're the same thing they just call them something else here's your MIP rate it doesn't matter if you have a 620 a 580 a 550 or 800 FICO score makes no difference you're gonna pay the same rate. On a VA loan great news no PMI no MIP you got that one. Okay we're almost halfway through the video so hit the subscribe button and hit the like button I appreciate that now if you'd like to comment, I will answer every single question personally and of course you're welcome to share this with anybody you think it's valuable for! Okay Debt ratio! A debt ratio is the percentage of your gross. Gross income is before they take taxes out. A percentage of your gross income to your debt. Now on a conventional loan with a high FICO score they're gonna allow you or a 50% that includes your car payment your credit cards student loans alimony child support all those kind of things plus the new house payment, that should be no more than 50% now if you have a lowerFICO score, it's probably gonna be 45% that's how conventional works. Now let' stake a look at FHA with a 580 FICO score or above, here's what's basically going to happen. You're gonna probably be approved to a 56. 99%let's call it 57%, again that includes all your debts plus the house payment as a payment. Lastly we have a VA loan. Now a VA loan works very very different it looks at how much money is left over after paying all this stuff. And it's called residual income and everybody depending on what area of the country you live in and how many people in your family there's a certain formula for it. Now if you have 20% more than that just to give you an example if it was a thousand dollars but you have 20% more $1200 and a high FICO score you may even go up to 60 or 65% debt ratio which is unbelievable and its highest in the whole industry. Interest rate on a conventional loan you're often going to hear Fannie Mae, Freddie Mac those are conventional loans. On a conventional loan you are gonna have a higher interest rate than either FHA or VA. Onan FHA loan it's lower than conventional and right about the same as VA they have virtually the same interest rates. Down payment on a conventional loan you're usually looking at a 3% down payment. People ask me about a conventional loanFannie Mae Freddie Mac yes those are conventional loans. Now if we look at anFHA loan an FHA loan is gonna require a three and a half percent down payment as long as your FICO score is 580 or above. If it's 579 or below it requires a 10%down payment and of course for our veterans who honorably served, we thank you! You get a zero percent down payment loan. Okay so we talked about PMI, MIP mortgage insurance whatever you want to call it. But there's also something called upfront mortgage insurance. Now on a conventional loan there is no up front mortgage insurance, but those of you with a high FICO score might want to pay some, and they eliminate the monthly PMI payments forever,. So that's a big deal and that's only available on a conventional loan and it doesn't make sense unless you have a really good FICO score. On an FHA loan we take the loan amount and multiply it by 1. 75 percent we have to add that to the loan amount. Simple example - if you have a hundred thousand dollar loan 1. 75 percent is $1,750, we're gonna add that, so you'd actually be borrowing $101,750 upfront mortgage insurance. On a VA loan there's a couple of different scenarios here the first time use of a VA loan it's 2. 15%so on that same hundred thousand dollars it's two thousand one hundred and fifty dollars added on on a second time use it's three point three percent so that's three thousand three hundred dollars now it doesn't sound like the end of the world but if you're taking a four hundred thousand dollar loan and it's a second VA loan that's three point three percent that is $13,200, that may make you say mmm this other loan might be better. Now though lastly if you're a veteran who happens to be disabled 10 percent or more there is no upfront mortgage fee that there is no VA funding fee it doesn't exist for you. Okay seasoning from bankruptcy many Americans through the last few years they've had a hard time and they did file a bankruptcy on a conventional loan 4 years must have elapsed from the discharge not from when you started but from when it was finished before you're allowed to apply for a conventional loan. On an FHA loan it's only two years and on a VA loan it's only two years. Short sale seasoning. Well a lot of people ask what's a short sale? Well at a time when people owed more than the house was worth, they often went to the bank and said, hey my house is worth three hundred I owe four hundred and the bank accepted three hundred thousand dollars. That was called a short sale. Well if you have a conventional loan if you want to apply for a conventional loan it would be four years after a short sale. For an FHA loan it's three years must have elapsed from the time of the short sale and for a VA loan it's only two years. Again Vets win, they earned. A foreclosure well yes some people went into really hard times on a conventional loan we are looking at seven years before you can buy a home againOn an FHA loan it's only three years and For the vets - two years from a foreclosure okay Time back to work after an extended absence. Well on a conventional loan there is actually no real time frame but the lender will take a look they just want to make sure it's reasonable and everything is considered as a make sense situation you can be back to work for one month after or six months or a year off. On an FHA loan FHA guidelines require six months back to work with pay stubs proof they've been back to work for six months before they'll accept that income. On a VA loan it varies perl ender some lenders will accept right back to work some might want six months or three months a lot of them will require just get past the probationary period on the job and you're good to go. Occupancy on a conventional loan you can buy for a rental, you can buy for a second home if maybe you want to live in the mountains or down by the beach on the weekends or obviously for an owner-occupied property. For a FHA and VA loan it is owner occupied.

Benefits of a VA Loan in New Jersey

usda loan house requirements [MUSIC PLAYING] Hello, and welcome toCalHFA's lender training. My name is Molly Ellis. Our focus in this video isour VA first mortgage program, basic guidelines,and the best ways to layer closing cost assistanceto benefit your veteran. First, let's talk aboutour CalHFA VA program. It's a VA first mortgage withan affordable interest rate. It has a maximumloan-to-value of 100%, and a maximum combinedloan-to-value of 105%. The minimum creditscore is 640, and the maximum debt-to-incomeratio is 45. Technically, CalHFA doesn'thave a loan amount limit. However, we do chargea high balance fee for any loan over $484,350. This would only beapplicable if the VA loan limit in the countythe property is located allows you to exceed $484,350. Otherwise, you'd have toadhere to the VA loan limit. For pricing and thehigh balance fees, please check out the ratepage on CalHFA's website. A unique feature ofCalHFA's VA program is that it can beused for a borrower whether or not they area first-time homebuyer. What makes our program so greatis the closing cost assistance. Layer the CalHFA VA program withour MyHome Assistance Program to allow the veteranto move in with little or no cash out of pocket. The loan amount for MyHome is3 and 1/2% of the sales price, or the appraised value,whichever is less, which could cover most ofthe veterans closing costs. Or if the borrower works fora California public school, they can use CalHFA's SchoolTeacher and Employee Assistance Program. This loan will get them up to4% in closing cost assistance. You can use only one, eitherMyHome or the school program. Either way, the interestrate is 3 and 1/4% simple interest withdeferred payments. Please do not calculate apayment into the borrower's DTI, as it is not required. Now when we add MyHomeor the school program to the CalHFA VAloan, the veteran does need to be afirst-time homebuyer. And remember, the definitionof a first-time homebuyer is someone who has not owned andoccupied a principal residence in the past three years. Both have to be used withthe CalHFA First Mortgage, and must be insecond lien position. When you're working witha first-time homebuyer, homebuyer education is requiredfor at least one borrower on the loan. CalHFA does not allow for amanually underwritten loan on a VA loan. That covers our VAFirst Mortgage Program, and the mortgage assistancethat can be layered with it. Now let's move on to propertyrequirements and maximum lender origination fees. The property requirementsfor these programs, for the most part,follow VA guidelines. Also make sure you adhere toany lender or investor overlays. The sales price ofthe property must be within CalHFA's publishedsales price limits. A one-year home warranty isrequired for first-time home buyers, unless they'repurchasing new construction. The property cannotexceed five acres, and manufacturedhomes are not allowed. If the propertymeets VA guidelines for an accessory dwellingunit, then as allowed, you can use the rental income. Now let's talkabout lender fees. First, you must be aCalHFA approved lender. Even though CalHFA usuallycaps the lender fees at 3%, on a VA loan, you'llneed to follow VA requirements, includingallowable and non-allowable fees. Our rates are at par. So you have to chargeorigination on these loans. But with the closingcost assistance from MyHome or theschool program, the borrower willstill have very little out-of-pocket expenses. If VA allows, you can chargean additional processing fee of $250 for MyHomeor the school program. You may not charge any otherfees, like origination fee or per diem interest,on the subordinate loan. We want to help make this easy. So we have provided sometools to help you process loans with CalHFA programs. The Loan Program HandBookfor each one of our programs includes all the detailsabout the program in one easy handbook. The Loan Program Matrixprovides a quick reference of terms and requirementsfor all CalHFA programs. The very popular LoanScenario Calculator will help you calculateloan amounts and print results for your borrowers. You can find these toolsunder Lenders/Real Estate Agents on our website. Click on Loan Program HandBooksfor the program handbooks, the calculator icon for theLoan Scenario Calculator, and the Tools, Affidavits, &Docs tab for the Loan Program matrix. Now let's look at the funstuff before we close. Our single-familylender training team offers in-person trainingclasses every month across the state. Attend a four-hour workshop tolearn all about CalHFA's phase programs. Classes are announcedeach month on our website and through our monthlyeNews announcements. To sign up for a class,visit CalHFA's website, choose the Training Calendarlink under Lenders/Real Estate Agents, and sign up for a classthat will work best for you. We also provide customizedmarketing materials that can be downloadedfrom our website by clicking on theLenders/Real Estate Agents section of the website. Choose the Loan Officers tab,then choose the Sales Tools & Marketing Materials link. For any questions you may have,contact single-family lending at 916-326-8033. Or you can email ourlender services division at LenderTraining@calhfa. Ca. Gov. Thank you so much for your time. Now get out there andhelp more veterans have a place to call home. homes that qualify for usda loan

USDA Loan Limit in NJ | (888) 464-8732