Home Buying in 07724>Question Details

Jmale870, Home Owner in 07724

NJ Smart-Start program criteria.

Asked by Jmale870, 07724 Sat Feb 4, 2012

I own a home that was acquired a part of a legal settlement and i have never purchased a home at all; would i still be considered a first-time home buyer under the program?

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Joe Cordova’s answer
I agree with Laura's answer below. You will want to contact a rep from NJHMFA.
But as a loan officer who has originated these loans since 1997, I know NJHMFA underwriters will look at your last 3 years of tax returns. If you have deducted mortgage interest or proprty taxes, you are not considered a first time homebuyer.

I would take it one step further though and discuss other financing options with you. Currently, NJHMFA rate is 4.25%. If you were to take the 4% of the loan amount smart start grant, your interest rate will be 5% for the life of the loan! Right now if you can come up with the 3.5% down payment from your retirement funds, gift from a family member, or gift from an employer, you could qualify for a market rate of approximately 3.75%! And the seller can pay up to 6% towards your closing costs. Not sure if you qualify for the LWYW program which keeps the 4.25% rate.

Joseph S. Cordova NMLS# 146855
Lincoln Mortgage Company
8003 Lincoln Drive West, Suite F
Marlton, NJ 08053
office: (856) 810-1200 ext. 242
direct fax: (206) 333-0946
cell: (856) 304-2381
2 votes Thank Flag Link Sat Feb 4, 2012

Definitely look at the info on the link that Laura gave you to get an overview of the program, but then SPEAK to someone to see if you really do qualify. The guidelines are fairly specific and not well explained on the site. If you are on the deed, I have a feeling you won't qualify.

I had a situation where my clients husband was co-signer on a loan, AND was on the deed, of a house he helped his sister purchase. Although he never lived there, he was disqualified as a first time buyer because his name was on the deed and technically he "owned" a home.
0 votes Thank Flag Link Sat Feb 4, 2012
Try reading this on the NJ HMFA website and talking to one of their reps.

0 votes Thank Flag Link Sat Feb 4, 2012
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