Home Buying in South River>Question Details

Joan Jones, Home Buyer in South River, NJ

Do I need to have a down payment? If so, what's the percentatge?

Asked by Joan Jones, South River, NJ Fri Mar 5, 2010

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Hi Joan -

The good part to all of this is that you are following the right course of due diligence and asking questions.

You should speak with a good mortgage representative that can sit down, go over the numbers with you and discuss your options. That works in tandem with your Realtor. You should also find a good Realtor to discuss you possible home purchase, make the connection between the mortgage person and the Realtor and you should have your team set up!

I am not a mortgage person, but from experience I know that depending upon your personal finacial situation there are programs with 0% down to 20% down this can be done. But again, your mortgage person would be able to advise you best. Mike Lavanco is a local Mortgage Banker, with First Choice Bank and a resident in the area,. Mike will meet with you and discuss your options, give him a call!

Mike Lavanco
First Choice Bank
Senior Home Loan Consultant
Office: (732)536-3330
Cell: (908) 307-3236

** Note, I only recomend people that have proven themselves to to be of the standards that I consider to be 5 star rating. If they were not, there would be no name and phone number here!

You also need to speak to a Realtor and discuss what you want in a home and discuss where you want to
live and what may be available in that area.

Feel free to call or email and I can help you with your home search wherever you choose to live!
2 votes Thank Flag Link Fri Mar 5, 2010
@Alma,

I am sorry to say this in a public forum, but why do you insist on answering mortgage questions, especially in New Jersey. You just mentioned to this potential buyer to Google Affordable Housing SHIP program. That program is a Florida based program, not a national program.

Sorry everyone, but realtors giving in depth mortgage advice in some states is actually illegal now. Besides, if they aren't hands on in regards to mortgages daily, they should only be talking about real estate. We already have enough misinformation out there when loan officers don't know what they are doing. This might sound negative, but it's a hard cold fact and reality.

Thanks,
jeff
2 votes Thank Flag Link Fri Mar 5, 2010
Joan...

Short answer....From 3.5% minimum for an FHA loan, up to infinity (meaning full price cash)

20% down on a conventional 30 year mortgage will prevent you from having to pay PMI (private mortgage insurance)

If you aren't sure if you have enough, speak to a mortgage lender, and let them give you specifics of loan programs that fit your needs, and what they will cost you per month.
1 vote Thank Flag Link Fri Mar 5, 2010
The program Alma is referring to is called the Tax Prefund program. It is only available during the timeframe of the first time home buyer tax credit (expiring soon!) Here is a link to that info.

http://njmortgageblog.com/post/1528174/nj-first-time-home-bu…
Web Reference: http://njmortgageblog.com
0 votes Thank Flag Link Fri Mar 5, 2010
Also, to get the $5k upfront, you must go with an approved NJ Lender. Here's the list, contact one of these lenders:

http://www.state.nj.us/dca/hmfa/consu/buyers/lender_list.pdf
0 votes Thank Flag Link Fri Mar 5, 2010
@Jeff, you're right, my mistake.... New Jersey will "advance" only up to $5k...

Joan,

Check out this link:

http://www.state.nj.us/dca/hmfa/consu/buyers/
0 votes Thank Flag Link Fri Mar 5, 2010
first thing you need to do is call a lender. Mortgages will vary everywhere and you might not qualify for every program depending on your unique situation

there are 100% financing programs in my state but they have strict debt to icome ratios and income ristrictions.

there are also low downpayment programs like fha which is currently 3.5% down if you are considering an fha product the laws will be changing soon not to the buyer advantage. meaning higher down payment tighter credit ristrictions and higher mortgage insurance premiums. So take action now

best of luck

Amanda
0 votes Thank Flag Link Fri Mar 5, 2010
Hi Joan,

As Steve had pointed out, there are numerous mortgage programs out there. A few things that need to be mentioned, because you might not be qualified for some of the programs below is that any loan officer needs to know your credit score and income to determine if you can get any of these programs. On top of that, those two items mentioned can determine a few things such as your rate at times. And you want a loan officer that will go over your goals, what mortgage payment that you are comfortable, and who will walk you through the whole process. Not all loan officers do this and sometimes you could be put into the wrong mortgage program if some things aren't addressed. An example would be a loan officer putting you into a 5 yr arm just because the rate is lower. My whole point to that is that the lowest rate might not always be the best scenario for you.

Overall, you do want to choose your loan officer wisely and not just because someone just told you to use their great person. I am not here to scare you, but not all referrals are as good as advertised. Interview your loan officer just as they would interview you. Please read : http://activerain.com/blogsview/1439588/transparency-in-real…

If you have any further questions, you can reach me at my e-mail address or on my cell phone.

And just be careful of such rumors.. you don't need 700 credit scores and 20% down to get a mortgage. http://activerain.com/blogsview/1239283/credit-scores-fico-s…


Thanks and good luck,

Jeff

Jeffrey J. Belonger
Area Manager

Infinity Home Mortgage Company, Inc
Processing : 800-587-2762
Cell : 609-440-5133
Fax : 775-361-6619
e-mail : jbelonger@ihmci.com
0 votes Thank Flag Link Fri Mar 5, 2010
Joan it depends on a few things; mainly where are you buying. There are 100% (zero down) programs available, as well as down payment assistance programs to cover some or all of your down payment requirements for programs like FHA. Get hooked up with a great loan officer (not just any) and review all of your options. You can e-mail or call me for more info pertaining to your specific scenario. Best wishes.
Web Reference: http://njmortgageblog.com
0 votes Thank Flag Link Fri Mar 5, 2010
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