800-778-9044
800-778-9044

FHA Loans with Advisors Mortgage Group

Welcome to New Jersey, where the pursuit of homeownership is as diverse as our beloved Garden State itself. From the electric energy of Hoboken to the tranquil retreats in Cape May, finding your place in this vibrant state is an adventure waiting to happen. And if you're on this journey, an FHA loan could be your golden ticket. With Advisors Mortgage Group by your side, consider this your go-to guide for navigating FHA loans with the right mix of savvy insights and Jersey pride.

What are FHA Loans?

Think of them as the diner of the mortgage world: reliable, welcoming, and quintessentially American. Backed by the federal government, these loans are the underdog's champion, offering a shot at homeownership to those who might not hit the high notes of traditional lending criteria. Perfect for first-time buyers or anyone who's faced financial setbacks, FHA loans in New Jersey are about opening doors—literally.

FHA Loan Requirements:

  • Credit Score: While conventional loans often require higher credit scores, FHA loans are more lenient, typically accepting credit scores as low as 580. However, borrowers with lower credit scores may need to make a higher down payment.
  • Down Payment: One of the most attractive features of FHA loans is the low down payment requirement, which can be as little as 3.5% of the purchase price.
  • Debt-to-Income Ratio: Lenders evaluate borrowers' debt-to-income ratios to ensure they can afford mortgage payments. FHA loans typically allow for higher debt-to-income ratios compared to conventional loans.
  • Property Requirements: FHA loans have specific property requirements, including minimum property standards to ensure the home is safe and habitable.

Benefits of FHA Loans:

  • Low Down Payment: With down payments as low as 3.5%, FHA loans make homeownership more accessible, especially for first-time buyers who may struggle to save a large sum.
  • Flexible Credit Requirements: FHA loans accommodate borrowers with less-than-perfect credit, providing an opportunity for individuals with lower credit scores to qualify for a mortgage.
  • Competitive Interest Rates: FHA loans offer competitive interest rates, making them an attractive option for many borrowers.

But Wait, There’s a Catch: The Not-So-Great Bits

  • Mortgage Insurance: Just like the Jersey Turnpike has its tolls, FHA loans come with their own set of fees, including upfront and annual mortgage insurance premiums. It’s the price of admission for the FHA ride.
  • Pickiness on Property: FHA loans are a bit like your Jersey grandma—they have high standards for what properties make the cut, ensuring your new home is up to snuff.

Partnering with Advisors Mortgage Group

With over two decades of experience in the New Jersey real estate market, Advisors Mortgage Group brings a depth of knowledge and a commitment to personalized service. As a Full Eagle FHA Underwriter, we have the authority and expertise to streamline your loan process, making your journey to homeownership as smooth as possible. Our team is dedicated to providing a seamless, stress-free experience, ensuring you feel supported at every step.

Embarking on the journey to homeownership is a momentous decision, and choosing the right partner can make all the difference. With Advisors Mortgage Group, you gain more than just a lender; you gain a partner committed to helping you achieve your dream of homeownership in New Jersey. Let's take this step together, with confidence and clarity, towards securing your future home.

FHA Loan Limits Across New Jersey Counties

County name One unit Two units Three units Four units Median sale price
ATLANTIC $472,030 $604,400 $730,525 $907,900 $294,000
BERGEN $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
BURLINGTON $529,000 $677,200 $818,600 $1,017,300 $460,000
CAMDEN $529,000 $677,200 $818,600 $1,017,300 $460,000
CAPE MAY $548,550 $702,250 $848,850 $1,054,900 $477,000
CUMBERLAND $472,030 $604,400 $730,525 $907,900 $182,000
ESSEX $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
GLOUCESTER $529,000 $677,200 $818,600 $1,017,300 $460,000
HUDSON $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
HUNTERDON $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
MERCER $472,030 $604,400 $730,525 $907,900 $308,000
MIDDLESEX $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
MONMOUTH $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
MORRIS $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
OCEAN $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
PASSAIC $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
SALEM $529,000 $677,200 $818,600 $1,017,300 $460,000
SOMERSET $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
SUSSEX $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
UNION $1,089,300 $1,394,775 $1,685,850 $2,095,200 $1,010,000
WARREN $472,030 $604,400 $730,525 $907,900 $300,000

Frequently Asked Questions

Q: What is an FHA loan?
A: An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a government agency within the U.S. Department of Housing and Urban Development (HUD). These loans are designed to make homeownership more accessible to individuals with lower credit scores and smaller down payments.
Q: Who qualifies for an FHA loan?
A: FHA loans are available to a wide range of borrowers, including first-time homebuyers, individuals with less-than-perfect credit scores, and those who may not have enough saved for a large down payment. While specific requirements vary, borrowers typically need a credit score of at least 580 and a down payment of 3.5% or more.
Q: How much can I borrow with an FHA loan?
A: FHA loan limits vary by location and are influenced by the median home prices in the area. These loan limits typically change each year.
Q: What are the benefits of an FHA loan?
A: Some key benefits of FHA loans include:
  • Low down payment requirements (as low as 3.5%).
  • Flexible credit requirements (accepting lower credit scores).
  • Competitive interest rates.
Q: Are there any drawbacks to FHA loans?
A: While FHA loans offer many benefits, they also have some drawbacks, including:
  • Mortgage insurance premiums (both upfront and annual) that increase the cost of the loan.
  • Strict property requirements, limiting the types of properties that qualify for financing.
  • Loan limits that may restrict borrowing options in high-cost areas.
Q: How do I apply for an FHA loan?
A: To apply for an FHA loan, follow these steps:
  1. Determine your eligibility by checking your credit score and debt-to-income ratio.
  2. Find an FHA-approved lender experienced in FHA loans.
  3. Get pre-approved by submitting your financial documents.
  4. Find a home that meets FHA requirements and make an offer.
  5. Complete the FHA loan application and provide any additional documentation required.
  6. Close on your home after final approval and signing the necessary paperwork.
Q: Can I use an FHA loan to buy a fixer-upper?
A: Yes, FHA 203(k) loans allow borrowers to finance both the purchase price of a home and the cost of renovations or repairs into a single mortgage. This can be a good option for buyers looking to purchase a fixer-upper property and make it their own.
Q: Can I refinance my existing mortgage with an FHA loan?
A: Yes, FHA offers several refinancing options, including the FHA Streamline Refinance and the FHA Cash-Out Refinance. These programs allow borrowers to refinance their existing FHA or non-FHA loans to potentially lower their monthly payments or access equity in their homes
A Family

Advisors is a multi-state mortgage banker that believes in delivering a seamless, stress-free mortgage experience to all of our customers.

Apply Now