The USDA Guaranteed Home Loan Program in New Jersey is backed by the USDA – the United States Department of Agriculture.
It is a TRUE no money down home loan in New Jersey. Many people who take advantage of this program are able to get into their homes with little to no money out of their pocket.
BUT, there are several USDA Loan eligibility requirements in New Jersey 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 New Jersey! 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.
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.
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
It is freedom for spreading today we are getting details on usda loans. And as a more and mortgage loan representative at freedom first joins us to tell us more. Welcome thank you for having me. >> there are a lot of loans out there so let's talk about the usda loan. What is that? usda loan is a great option. It offers people 100 percent financing, meaning no down payment. The mortgage insurance within the monthly payment is very affordable compared to other loan programs. You do not need to be a first-time homebuyer to take advantage of that program. It is designed for property specific like only in rural areas. >> oh okay so that is good enough. People are buying in the city , not necessarily would use a sports book that is why you will want to give us a call and let us know what property you are interested in and they would see if that piece is in the usda eligible area. >> and why was this created ? To encourage people to live in more rural areas? >> homeownership designed for certain income areas like moderate to low income households. Two in one homeownership in the rural areas. >> let's talk more about the features of a usda loan. What can we expect?>> I touched on that a little bit as far as no down payment. And it is designed to help people obtain homeownership that no down payment, low mortgage insurance. Those are the best features for people that don't have a down payment to work with. >> and their are a lot of people taking advantage of the usda loans were now? >> there are. We get a lot of inquiries. The big part is making sure the property is in a usda eligible area so we can help with that. >> how do you know? >> you enter a property address into the usda website and it tells you if it is in a usda eligible area. Very easy today. >> so anybody could do it? So if i'm sitting at home and my computer, what do I have to do? >> I would look up usda property eligibility and it will take you to that webpage within the website and then you enter in a property address and hit enter and it tells you if it is in an and eligible area. >> that is nice. >> another piece of that to is -- kinda touching on the household income limits , most of the counties in our area do have household income limits of 78,000 200 meaning all adult income earners , their total income has to be within that range. >> in the house. So consider that. >> that can be a challenge sometimes. >> but that is nice you don't want to put down payment on a house or anything like that. So it can be a little confusing i'm sure. Do you encourage people to call you?
hey this is Chris the mortgage pro today I'm gonna teach you how to qualify for a mortgage well there's a lot of things obviously that a lender has to look at so let's go through each and every one of them the first one that stops everybody and they get all nervous is credit now some people have outstanding credit and some people hey they have challenges maybe they had late pays you know bad things happen to good people all the time and sometimes that's the reason for a low credit score sometime sit's you don't even have enough credit so let me give you a way to think about how the lender will look at your credit they say to themselves hey if this guy can't pay a $25 a month credit card are we gonna lend them three hundred thousand dollars it's a small way of thinking don't think fold up think bigger think I'm not gonna go out to dinner I'm gonna pay my bills first you pay your bills this is what my mama taught me first you pay your bills you pay the mortgage you pay all your other debts then you figure out a wheat and steak over eaten beans it's just a way to think if you think like that in a short period of time your credits gonna be good enough to fire your landlord okay next thing lender needs to know income well do you have job stability how long you been on your job look you could get a job and get approved the next day you really can but if you change jobs every three months well that job stability isn't there they want to see some kind of stability do they want to see income of course how do they know that you can afford to make that payment they need to know that you have the income they expect it to continue for usually three years is what they're looking for obviously you can get fire you can get laid off things could change but they have a reasonable expectation of three years going forward that the income will continue so they want to see that they'd love to see a history the stronger the history the stronger the case you could fire your landlord okay next thing they want to see downpayment they call this skin in the game if you put up your own money that you worked hard for for a down payment they say hey they got some skin in the game they're serious they're committed now if you put a zero down program and we have these zero down programs they work great for some people but it makes a little bit tougher for the underwriter to say yeah they're worth taking a shot on so we want to see a down payment sometimes people put $200,000 on a down on a four hundred thousand dollar house do they have some skin in the game it makes the underwriters decision way easier doesn't it and if a person can't put a thousand or two thousand dollars down it makes the underwriter a little nervous so take advantage of the programs save some money but be sure that you're ready to show you're committed to this transaction okay something else obviously the underwriter wants to see we need an appraisal of the property we have to know the lender needs to know that if it's a four hundred thousand dollar loan that the house isn't worth three hundred and fifty thousand dollars so the collateral is the last piece of the puzzle that they have to make sure it's worth it but that also protects you as the borrower why because if you commit to buying a house for $400,000and it appraises at three hundred and eighty thousand is that something you really want to do so this is designed to protect you and protect the lender that's a big deal okay not only do they want to see your credit but on the credit report it's a list of debts what do you mean well you have your car payment on there you have your credit cards you may have child support alimony we have to look at all the debts if you make $5,000 a month but you have $2,000a month in debt doesn't leave a whole lot for a house payment so we have to look at all the numbers versus your income so that's the last thing that they're gonna want to see how much is going out already because you're going to add on this new house payment okay so those are the five things that a lender needs to see they want to see your credit are you responsible do you pay your bills on time or do you make excuses for not paying them do you have crazy debt that's out of control that you can't handle when you add on house payment do you have income and job stability how's that going do you have five new jobs or one new job it doesn't really matter if you have two or three jobs but if you change your job on a regular basis not gonna work what else they want to see how much money you've saved what's in your 401k what's in your IRA what is in your bank do you save money do you have a financial responsibility that you are showing you are a responsible borrower those are the key things they want to see and obviously the appraisal they want to make sure the collateral is solid it protects the lender and protects you so this is Chris Trapani call me I'll help you figure it out and together we're going to fire your landlord!.
USDA Loan Limit in NJ | (888) 464-8732