New Jersey’s Leading Provider Of FHA Down Payment Grants For The Past 31+ Years
Imagine how much easier it can be when buying your first home and receiving a grant for your entire down payment requirement. We make buying your first home easy with down payment grants for our FHA mortgage programs. In New Jersey, a first-time homebuyer is anyone who hasn’t owned a home within the last three years.
The Loan Tree has a mission to increase affordable and sustainable homeownership, specifically for creditworthy, low- to moderate-income individuals. The Loan Tree partners with reputable national wholesale investors provide down payment assistance for qualified homebuyers. Through this program, The Loan Tree has several product options to choose from that include down payment assistance in the form of second mortgages on FHA-insured loans.
Here are facts that borrowers should know about our Down Payment Assistance Programs
- Less-than-perfect credit is OK
Minimum credit score for our FHA Down Payment Assistance Programs is 600 or higher.
- Annual Income Limits
The sum of all borrower’s qualifying income must be equal or less than 160% of the median income for the New Jersey County in which the borrower will purchase the home. The Grant is forgivable under conditions dependent on the down payment assistance amount.
- Types Of Down Payment Assistance Programs
With the Grant product, the borrower receives a 30-year term, 0% interest rate (0% APR), no monthly payment Grant in the form of a second mortgage as follows below:
Option#1: 3.5% Down Payment Grant: Forgivable after 36 consecutive, on-time payments on the FHA first mortgage. This forgiveness period resets if the borrower makes a late payment, but the borrower has the full 30-year term to meet the forgiveness conditions. This mortgage may also be forgiven at the end of the 30-year term if the previous forgiveness condition has not been met.
Option#2: 5% Down Payment Grant: Forgivable after the initial 120 consecutive, on-time payments on the FHA first mortgage. This forgiveness period is terminated if the borrower has a payment that is 60+ days late, but the loan will remain with a 30-year term, 0% interest rate (0% APR), and no monthly payment. This mortgage may also be forgiven at the end of the 30-year term if the previous forgiveness condition has not been met, even if the borrower made payments on the first mortgage that were 60+ days late.
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