as you can tell from the responses there are many mortgage options. Here is a site that can help you get a better grasp of the mortgage rates and options : http://www.mortgage101.com/article/what-are-typical-mortgage
Also If you are a first time buyer New Jersey is offering a Grant program that will give you up to $4 for every $1 you save towards the purchase of your home . Also in Ocean county if you are a first time buyer they offer a $10,000 grant towards the purchase. Grants do not have to be paid back if you remain in the home for the required time period.It is seven years for the grant from Ocean County for example.Otherwise you will be required to pay the grant back on a prorated basis.
The USDA loan program Deb mentioned as she said is not funded right now but hopefully will be soon. This mortgage is a great loan. And your payments are based on your income. For example I had a client who got a USDA loan ( one of the last before funding ran out) she got the grant from Ocean county and her payments for a home she paid 195,000 are under a 1,000 per month. In two years they will evaluate her income and adjust as necessary.
For the Ocean county grant-
For good info on first time buyer resources from government agencies -
Here is a good sit for info on all grants offered throughout N.J.-
USDA allows for 100% financing in certain areas, as determined by population and rural status. Awaiting additionally funding on that program.
Your down payment must come from you. You can receive it as a gift, but you may not borrow it. The seller cannot contribute toward your down payment.
In addition to the down payment, you will also need to pay for closing costs. The seller can contribute toward your closing costs. While that is a realistic pursuit, it sometimes does not work if the property does not appraise high enough. Example: Seller offering property for sale for 150K. Buyer #1 is wiling to purchase at 145K and buyer does NOT ask seller to pay any closing costs. Buyer #2 is willing to purchase at 148K, AND buyer asks seller to pay 5K toward closing costs. The seller, after paying those costs, would net 143K, which is lower than if he sold to Buyer #1. For Buyer #1, the property needs to appraise at 145K. For Buyer #2, the property needs to appraise at $148. For Buyer #2, the property must appraise higher and the seller must be willing to accept a bottom line that is less.
If you are limited on cash to put down, consider asking a seller to pay part of your closing costs. Everyday, there are closings where the seller pays part of the buyers' closing costs. So, it does happen. Sometimes it does not work. For example, with Buyer #2.....if the property appraised for 136K instead of 148K, the contract would not work unless the parties modified the contract. The seller could reduce the contract amount, and it could work. But, the seller is not obligated to do so.
In order to purchase a property, you will need to pay the down payment and closing costs.
Helen Cocuzza Realtor Associate
Better Homes & Gardens Real Estate Mary Holder