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

The USDA Guaranteed Home Loan Program in Old Bridge Township is backed by the USDA – the United States Department of Agriculture.

It is a TRUE no money down home loan in Old Bridge Township. 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 Old Bridge Township 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 Old Bridge Township! 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 qualified homes Benefits of a VA Loan The following are benefits that you can enjoy from a VA Loan that you can avail from Fairway Independent Mortgage Corporation 0% Down Payment Conventional loans generally require up to 20% down payment in order to secure a home loan. But for those who are qualified, the 0% down of VA Loans is a lifeline. No PMI Private Mortgage Insurance (PMI) is a requirement for borrowers who finance more than 80% of their home's value. It results in an additional monthly expense. Since VA Loans are government backed, banks do not require you to buy PMI anymore. Competitive Interest Rates Conventional loans without government backing have less competitive interest rates because banks are taking on more risk. The VA guaranty is advantageous since it gives lenders a greater degree of safety and flexibility. This means that the borrower gets more competitive rates than non-VA loans. This, along with no PMI, can substantially lower your monthly payment. Call Fairway Mortgage at 843-757-7552 NOW! Easier to Qualify VA Loans are easier to qualify for because the loan is backed by the government. Therefore, banks assume less risk and have less stringent qualification standards for applications under VA Loans. On the other hand, non-VA loans hold stricter qualification procedures which makes it harder for prospective homebuyers to qualify. Basic Allowance for Housing Basic Allowance for Housing (BAH) is a significant benefit for qualified active military members. Lenders can count your Basic Allowance for Housing as effective income. This allows borrowers to use BAH to pay some or all of their monthly mortgage costs. BAH varies based on the borrowers: Pay grade, Geographic location, Number of dependents No Pre-Payment Penalty The pre-payment penalty is the result of paying off a home loan before it matures. It is a way for financial institutions to recoup some of the interest payments that lenders miss to collect. The VA Loan allows borrowers to pay off their home loan at any point without having to worry about a pre-payment penalty. With the absence of a pre-payment penalty, borrowers are free to consider future home purchases and refinancing options. Call Fairway Mortgage at 843-757-7552 NOW!.

The Pros & Cons of VA Loans

usda down payment - Hey, it's Austin Schneiderhere and today we're gonna give you the pros andthe cons of a VA Loan. So a VA Loan is set upfor active and non-active military members as a perk for those who served in our military. Pro number one of a VA Loan is that there is no down payment required. Forget that 20%, forget that 3. 5%, you don't have to put anything down. Con number one is there's a VA funding fee which typically comes out to around 2% of the purchase price. Pro number two is you'regonna be saving money on Private Mortgage Insurance. You will not have to paythe up to a couple hundred dollars a month in thisMortgage Insurance. Con number two is thatthe VA Loan is intended for primary residence,meaning you need to be living in this home. Pro number three is that there's a higher debt to income ratio, meaningthat you can get a loan for a larger amount thanyou probably would be able to with a conventional loan. Con number three of a VALoan, it could be a turnoff to sellers, the 0% downsometimes makes them shake a little bit in their shoes, especially if it is acompetitive situation. Alright, guys, for moreon VA Loans pros and cons, visit us online at TheMortgageReports. Com. Thanks so much for watching, we'll see you on the next one. (upbeat music). usda rural development loan payment

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