Do FHA Jumbo Loans Make Sense for 1st Time New Jersey Home Buyers?
Is the phrase “FHA Jumbo Loan” an oxymoron? In order to answer that question, you have to understand the history of FHA loans. In 1965 the Department of Housing and Urban Development (HUD) was formed. Within HUD operates the Federal Housing Administration (FHA), which has the primary responsibility for administering the government home loan insurance program. This program allows a first time home buyer who might otherwise not qualify for a home loan to obtain one because the risk is removed from the lender by FHA who insures the loan for the lender. So why would someone who has less than a perfect credit history think he/she could qualify for a jumbo loan?
Well, the answer has less to do with the credit worthiness of the borrower and more to do with the prevailing home prices in the area in which the borrower is trying to purchase. The government has come to realize that in certain areas of the country, Bergen County New Jersey being one, that many homes cannot be purchased for the previous maximum FHA loan amount of $362,790. That is why in March 2008, FHA temporarily increased their maximum loan amount to $729,750 – yes you are reading that right $729,750. This was supposed to be a temporary provision, but it has already been extended through 2010. However, we do not know if these increased limits will remain in effect indefinitely.
So the answer is a resounding YES!!!!! It does make sense for a first time home buyer in Bergen county and other high priced areas of New Jersey to apply for a jumbo FHA loan – and he or she should do it while the rates are down and the higher limits are in effect.
Click on the link below to find the FHA loan limit in your area. For information on Jumbo Loans and why they are so Good for New Jersey Market go to FHA Jumbo Loans – Good for Bergen County and the Northern New Jersey Market.
Please contact us at 201-943-6800 to schedule your FREE No-Obligation Consultation where we will meet to tailor a program to fit your needs and comfort level for monthly payments and investments.
If you would like to get started now please fill out a Secure Online Application and we will contact you to set up your free consultation and get you into the home of your dreams with the best terms available…regardless of your credit!
I hope you have enjoyed this blog.
Until next time,
Tony
201-943-6800
P.S. Also, make sure you register for our Insider Mortgage Secrets, browse our HomeBuying Resources section and fill-out a free no-obligation secure online application or call our Edgewater, New Jersey (NJ) office in Bergen County (New Jersey Gold Coast) at 201-943-6800 with any questions you have.
P.P.S. CLICK HERE to check out our FREE Credit Repair Program.
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