Mortgage Loan Programs in New Jersey – Find the Right Fit for You

A conventional loan is any mortgage loan that is not insured or guaranteed by the government (such as under Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture loan programs).

The most common type of mortgage

Minimum 3.5% down payment

The Veterans Affairs home loan program is a government-backed loan that allows eligible veterans and service members to purchase a home with no down payment and much lower interest rates. The GI Bill of Rights established the program in 1944 to assist veterans in reintegrating into civilian life following World War II.

For veterans and their spouses

These loans are issued and guaranteed by the United States Department of Agriculture. They are intended to assist low-income individuals in financing the purchase and improvement of a single-family primary residence in rural and suburban regions.

No down payment necessary

A FTHB loan is a mortgage program specifically designed to assist individuals purchasing their first home, often offering benefits such as low down payment requirements, reduced interest rates, and financial assistance to help with closing costs or down payments.

Minimum 3% down payment

These mortgages often require alternative documentation, such as tax returns, profit and loss statements, and bank statements, to verify income. Lenders may also consider factors like length of time in business and stability of the borrower’s income when assessing eligibility for a self-employed mortgage.

No W-2 required

A construction loan provides financing for the construction of a new property or significant renovations to an existing property. The loan is typically disbursed in stages as the construction progresses. Once construction is complete, the loan may be converted into a traditional mortgage or paid off with a permanent financing option.

Typically short term financing

These loans are typically used to finance the acquisition, construction, or renovation of office buildings, retail spaces, industrial facilities, or multi-family (5 units+) residential properties. They often have different terms and requirements compared to residential mortgages, including higher interest rates, shorter repayment periods, and stricter eligibility criteria based on the financial health and creditworthiness of the business.

Rates vary by property

A DSCR loan is an investment property mortgage that qualifies a borrower based on the predicted rental income of the property rather than their personal income or debt.

Typically need DSCR > 1

A Home Equity Line of Credit offers current homeowners a simple way of tapping into their home’s equity when a cash-out refinance doesn’t make sense due to having a low interest rate on their current mortgage.

$25,000 minimum line amount

A reverse mortgage is a home loan that lets homeowners draw on their home equity. It is referred to as a “reverse mortgage” because you receive payments from your lender rather than making monthly loan payments to them.

Must be age 62+

Short term, interest only loan that is typically used in real estate to cover the period between the purchase of a new property and the sale of an existing property.

Higher rates and fees than other loans