I qualify for Live Where You Work (5% assistance) in JC but I've been told FHA with 3.5% is better. Any idea why?

Asked by C0nfus3d, Jersey City, NJ Mon Sep 19, 2011

I've read the pamphlet for Live Where You Work and my understanding is that I qualify for the assistance. I work in JC and plan to buy there. LWYW gives you a 2nd mortgage equivalent to 5% of the house cost. Only the interest is paid and after 7 years, the principle if forgiven.

By my calculations, after interest paid it's more like you're getting 4% assistance. But still, why have two mortgage guys alluded to FHA with 3.5% being better? Are there additional hidden costs to LWYW? Even if there were, surely the 5% assistance plus 3.5% out of pocket has to be better than FHA 3.5% out of pocket down, no? Any idea what I'm missing?

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Mon Sep 19, 2011
I do a ton of business in your area... to be honest, I need to see the whole picture to tell you what would work best for you. What type of rates did these people give you for an FHA? Do youhave an idea what your credit score is ? What kind of rate are you getting with the Live Where you work program ? I could give you pro and cons, but kind of need a bit more info
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Suzanne MacD…, Agent, Succasunna, NJ
Tue Sep 20, 2011
I work with a mortgage partner who is very, very familiar with both programs. I would be happy to introduce you if you'd like and you can discuss it with him. I do not do much work in Jersey City so I have no other agenda here, just thought perhaps I could help you out. Not to disparage anyone, your guys could be absolutely correct, but sometimes if a lender is not familiar with a particular program, like Live Where You Work or USDA they try to steer their clients into a product that they understand better. Just a thought, happy to introduce you if that helps. Just contact me here on Trulia and I will arrange it.
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