FHA loans are home loans insured by the FHA (Federal Housing Administration) which give New Jersey borrowers the opportunity to secure home loans when they don't quality for other conventional ones. For example, potential New Jersey homeowners with little credit history or poor credit are sometimes able to qualify for FHA loans.

FHA Loans for First-Time Homeowners

FHA loans are ideal for first-time New Jersey homeowners due to low down-payment requirements and flexible qualifying guidelines.

Refinancing with FHA Loans

FHA also offers a refinancing option for New Jersey homeowners where it's possible to refinance up to 97.5% of your home’s value. Additionally, there’s also an option for FHA cash-out refinance of up to 85%.

FHA Loan Requirements 

  1. No income limit
  2. Borrower credit score flexibility
  3. 3.5% down payment on Purchase Loans
  4. Bankruptcy: FHA loans can be obtained as soon as 2 years after Chapter 7 discharge (assuming good credit history since)
  5. Foreclosures: An FHA loan can be obtained as early as 3 years after the final date of foreclosure (assuming good credit history since)

New Jersey FHA Loan Limits

FHA loan limits in New Jersey vary based on a number of criteria including the specific location (county), number of units in the property (up to 4-unit properties), etc. Please contact Home Point Financial for details on loan limits for FHA loans in New Jersey (NJ).