First Time Home Buyer (FTHB) loans are residential mortgages that offer benefits to those that are considered a first time home buyer in New Jersey. A person qualifies as a first time home buyer if they have not owned a home in the past three years! So even if you bought a property in New Jersey and sold it three years ago or longer, you will qualify as a first time home buyer.

There are many types of loan programs for FTHB and it is important that you contact your lender to discuss your specific situation. The two most common programs for FTHB are Fannie Mae’s “HomeReady” and Freddie Mac’s “HomePossible” loans. While it is not required for you to be a FTHB in order to qualify for these two products, most people usually are.

These two loan programs are technically considered Conventional Loans and target a similar demographic as FHA loans, in terms of allowing you to qualify for a mortgage with a low down payment and low to moderate income and credit.

Both loan programs require that the borrower occupy the property as their primary residence and have a minimum of 3% for your down payment. They also require that you make less than 80% of the Area Median Income in the zip code that you are buying in. The main difference in the credit score requirement as the HomePossible loan requires a 660 credit score vs. a HomeReady loan requires a 620 credit score.