Zero Down Mortgage Options for New Jersey May Soon End

By
Real Estate Mortgage Broker with Treasury Mortgage | Mortgage Company - New Jersey

Zero Down Mortgage Options for New Jersey May Soon End

by Steve Kappre, NJ Loan Officer

One of the strongest loan options for buyers these days is the USDA Mortgage Loan, which has some great features such as 100% financing (zero $$ down) and NO MONTHLY mortgage insurance. It also allows home sellers to pay for most or all of a buyers closing costs.

NJ Zero Down Mortgage - 100% FinancingSome may think this loan is too risky to even consider, but there are checks in place. In fact, this program has common sense guidelines such as debt ratios that can't be "out-of-whack" and some minimum credit score requirements. It also requires full documentation of income, assets, job history, etc.

Here is the bad news ...

When a USDA loan is written for a home buyer, there is a guarantee for the mortgage that is "locked in" once the loan is approved. The issue right now is that USDA estimates that it will be out of money around late April of 2010, which means that this great financing option will no longer be available, at least until the government decides to allocate more money to this program.

What to do now?

If you require this type of financing, than you need to get under contract ASAP on a home. Let us look at an example time-line; If USDA is out of funds by the end of April ... and it takes 2-3 weeks to fully approve a USDA loan ... and it takes one week to negotiate a contract for a home and have it signed by all parties ...

That puts us at the middle-to-end of March ... or RIGHT NOW.

Some buyers will be counting on the USDA loan and the first time buyer tax credit, and with even just a little delay or hiccup can miss out on everything.

 

Steve Kappre is a mortgage loan officer in New Jersey. For more info or questions feel free to contact Steve.

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Call direct @ 856-419-3561 | Subscribe to Steve's blog via e-mail | NJ Loan Officer .com

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Treasury Mortgage - 550 Bridgeton Pike, Mantua, NJ 08051 - 1810 Springdale Road, Cherry Hill, NJ 08003

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Topic:
Mortgage / Finance
Location:
New Jersey
Groups:
All About NJ Real Estate
Gloucester County, NJ
NJ First Time Home Buyer
Salem County, NJ
South Jersey
Tags:
usda
100 financing

Comments 3 New Comment

Ambassador
586,823
Janna Scharf
Coeur d'Alene Real Estate Pro
Keller Williams Realty Coeur d'Alene

I got the memo on this yesterday.  It will have a huge impact on my local market where more than 60% of all home sales are USDA Rural Development right now!  Ouch!

March 13, 2010 01:31 PM
Ambassador
2,277,483
Lenn Harley
Real Estate Broker - Virginia & Maryland
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate

I'm betting that the funding will not be renewed.

The government has done everything imaginable to kill the real estate market.

I hope I'm wrong.

March 13, 2010 02:01 PM
Rainer
288,801
Steve Kappre
NMLS# 217008 Mortgage Loan Officer NJ 856-419-3561
Treasury Mortgage | Mortgage Company - New Jersey

Janna - OUCH!!! is right

Lenn - It really does make you wonder doesn't it?  \o/  (this is me virtually throwing my hands up in the air)

March 13, 2010 02:06 PM
Rainer
288,801

Steve Kappre

NMLS# 217008 Mortgage Loan Officer NJ 856-419-3561
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