Mortgage in New Jersey
New Jersey is famous for many reasons, including its beaches, culture, and Atlantic City. It's also a popular place to live, in large part thanks to its proximity to New York. Many people prefer the (slightly) cheaper cost of living and more suburban lifestyle that places like Hoboken and Orange have to offer. However, despite being a little less expensive than NYC, New Jersey is still quite pricey, with an average sale price of $419,000 in the north end and $238,000 in the south end . Therefore, if you're considering moving there, you'll want to use our New Jersey mortgage calculator to see if the home you want is within your budget!
New Jersey Mortgage Calculator: See All Your Options
There are three types of mortgages that people looking to move to New Jersey should know.
- New Jersey conventional mortgage: A traditional mortgage offers the most flexibility in terms of housing prices. Since New Jersey housing tends to be above average, you'll likely need 20% down and a 700+ credit score. However, if you can manage to get a property within the conforming loan limits, you can potentially score a mortgage with as little as 3% down and a 620 credit score.
- New Jersey FHA mortgage: This mortgage type is a popular choice for people with less-than-ideal credit. To get an FHA loan, you'll need 3.5% down and a credit score above 580. If you have a credit score between 500 and 579, you can still get an FHA mortgage - you'll need 10% down, though. The one downside to FHA loans is that they always require PMI.
- New Jersey VA mortgage: Current and former military personnel can access one of the country's best loan programs. A VA mortgage requires nothing down and no private mortgage insurance. You will, however, need a credit score above 660 to qualify.
Except for VA loans, all of the above mortgage types require a down payment. New Jersey has programs to help first-time homebuyers with a down payment and get better rates on their mortgages!
First-Time Homebuyers in New Jersey
The New Jersey Housing and Mortgage Finance Agency offers various programs to help first-time homebuyers achieve their dream of owning property in the Garden State.
The state of New Jersey provides qualified first-time homebuyers with a competitive 30-year fixed-rate government-insured loan. A participating lender must originate these loans.
Eligibility Criteria: Income restrictions and purchase price limitations apply. However, these limits tend to be quite generous.
New Jersey will provide $10,000 of assistance towards the down payment and closing costs for prospective first-time homebuyers. This assistance is in the form of a forgivable 5-year loan. There are no monthly payments.
Eligibility Criteria: Income and purchase price limitations apply. Buyers must use a participating lender.
For currently-employed firefighters and police officers, this program provides low-interest mortgages. The interest rate is the rate of the 10-year Treasury bill plus 1%.
Eligibility Criteria: Income and purchase price limitations apply. You must be a currently-employed police officer or firefighter and be part of the Police and Firemen's Retirement System.
New Jersey Mortgage Calculator: See How Much It Will Cost To Live in the Garden State
New Jersey is a highly sought-after state, thanks to its proximity to two crucial economic powerhouses - NYC and Philadelphia. If you're thinking of moving here, please use our New Jersey mortgage calculator to determine how much it will cost!