FHA Mortgage Loans Now Require 3.5 Percent Down

The new year often means a bit 'of change. One of these changes are the new requirements of a deposit for a New Jersey FHA loans. that's right ... FHA mortgage loans in NJ now requires a deposit equal to 3.5%, compared to 3% held for over a decade. They say that drastic times call for drastic measures, and this is definitely one of those measures. NJ mortgage lending on mortgages have tightened a lot for the loans Fannie Mae. We, as representatives of the loans in New Jersey, hoped that requirements interim government loans (FHA programs) would never rise. However, that is not the case. You might think that this sounds like small change, but with large quantities New Jersey mortgage loan, what 'is. Although home values have dropped dramatically in this state, the amounts of loans are generally very high. FHA loans have always been known as the type of loans that people with small down payments received, which generally had a good job and have demonstrated their annual income. What does this mean for the buyer who is looking at houses for sale in NJ? This means that, if they plan to buy a house using an FHA insured loan, be aware of the changes to the minimum payment. there is still a lot of literature out there that suggests that the down payment is 3%, but people should be aware that this is 3.5% now. The good news is that FHA loans require the borrower still does not have perfect credit! NJ FHA mortgage loans had a reputation of being even a loan for the borrower whose credit score is less than par. This is still the case ... sort of. NJ While FHA loans now require a higher down payment (3.5%), but also a little 'less of a chance to pass underwriting guidelines, if the borrowers credit score is less than 600 (FICO). Thus, it is largely an opinion of calls by a mortgage underwriter. The clemency for the credit requirements for these types of loans are really the grace of FHA savings for customers now. All I can say from here on, is that it will be interesting to see if the mortgage market New Jersey goes from here.