Lakewood: Awesome Mortgage program for 1st time buyers

[Aben]

its not just in lakewood its all over NJ  and to get through  to them is nearly impssble

The income level changes depending where you are in NJ.

[Lamdan]

Whoever doesn't qualify should know that this will likely cause Lakewood housing prices to rise. You don't need to be an economist to understand why.

[Mikeoracle]

Whoever doesn't qualify should know that this will likely cause Lakewood housing prices to rise. You don't need to be an economist to understand why.

This program and similar programs have been around for years. I got a similar program over 5 years ago.

[Lamdan]

This program and similar programs have been around for years. I got a similar program over 5 years ago.

then i guess prices will only rise slightly due to the publicity of the LRRC.

[AsherO]

then i guess prices will only rise slightly due to the publicity of the LRRC.

You guys might both be right. While your theory is true, Lamdan, there's no way of proving how much these offers have affected the housing prices in 08701 (due to the myriads of other variables).

[Shua]

Does this work in NY?

[smurf]

Keep in mind that with all the criteria for being eligible, especially the income ceiling; this will limit who's eligible and how expensive a house you'll be able to  buy. So really it might not affect the general housing prices too much.

[Lamdan]

Keep in mind that with all the criteria for being eligible, especially the income ceiling; this will limit who's eligible and how expensive a house you'll be able to  buy. So really it might not affect the general housing prices too much.

good point.

[MLM]

I believe it means that if you were in a situation that the housing cost (mortgage+taxes+insurance) were higher than 33% of your monthly gross income then usually you wouldnt qualify. In a situation where the house you were interested in had an apartment with a rental income of lets say $800, you can subtract that (or 75%) from the monthly housing cost which can bring the ration down under 33%.
I could be mistaken and it may mean that your monthly gross income goes up to include the rent $ which will help the ratio as well (although not as much as an impact as the above calculation).
Either way they calculate it helps the ratio and can get a lot more people approved than without it.

I believe they count it as income. Allowing you to borrow 33% more of the annual income. So It would allow your monthly payments to be approx $333 per month more.

[Mikeoracle]

Keep in mind that with all the criteria for being eligible, especially the income ceiling; this will limit who's eligible and how expensive a house you'll be able to  buy. So really it might not affect the general housing prices too much.

+1

[farchez]

if anyone actually is buying a home for their first time in nj there is also a grant available for first time buyers. just ask someone from lakewood who was a first time buyer

[world2see]

is this only in nj or ny as well?

[sim]

no

[blue eyes]

Has anyone taken out a morgage to purchase property as an LLC Or corporation- Do you know anything about terms and stuff ? is there a need for ratio's profits etc etc?

[Name Changed]

Has anyone took advantage of this offer?

I am wondering - is there a minimum income requirement or just income has to be 67% higher than monthly payments?

[robi]

Has anyone took advantage of this offer?

I am wondering - is there a minimum income requirement or just income has to be 67% higher than monthly payments?

there's a seminar about it tonight in remax on main street. DO?

[Mikeoracle]

Has anyone took advantage of this offer?

I am wondering - is there a minimum income requirement or just income has to be 67% higher than monthly payments?

I am pretty sure it just has to be 67% higher than monthly payments (actual math would be 3x the monthly payment - since monthly payment can be a 3rd of gross income)

[MarkS]

To clarify a few things about this:
It's called the Right Step Program.
Rates are 1.5% below whatever the current Conventional 30 yr fixed rate is.
For example today that site says 3.375% so the current rate for this program is 1.875%.

They no longer count rental income as income - unless maybe if there is an existing home with a current tenant (ie not for new construction).

The way to initiate the process is by contacting LRRC.
There are (or were) other first time homebuyer programs out there meaning programs where you only need to put down 5% but they were FHA mortgages which had PMI for the first few years (several thousand dollars) plus their rates were in the upper 3's.

Although the press announcement above seems to say you can get this anywhere, I believe wherever you get this you need to go through a homebuying counseling program equivalent to LRRC where you need to take 4 hours of classes teaching responsible lending.

Try calling Roxanne Vivanco (from above link) to see if/how you can do this out of Lakewood.

[nutcase]

To clarify a few things about this:
It's called the Right Step Program.
Rates are 1.5% below whatever the current Conventional 30 yr fixed rate is.
For example today that site says 3.375% so the current rate for this program is 1.875%.

They no longer count rental income as income - unless maybe if there is an existing home with a current tenant (ie not for new construction).

The way to initiate the process is by contacting LRRC.
There are (or were) other first time homebuyer programs out there meaning programs where you only need to put down 5% but they were FHA mortgages which had PMI for the first few years (several thousand dollars) plus their rates were in the upper 3's.

Although the press announcement above seems to say you can get this anywhere, I believe wherever you get this you need to go through a homebuying counseling program equivalent to LRRC where you need to take 4 hours of classes teaching responsible lending.

Try calling Roxanne Vivanco (from above link) to see if/how you can do this out of Lakewood.

+1 NOT COUNTING 75% OF RENTAL FOR YOUR INCOME ANYMORE. after somerset walk they cancelled it also used to be only eligible for unattached house I believe now they  allow a duplex(possibly a townhouse) also keep in mind if you are self employed they want to see 3 years of income. can only be up to $77000 and only 33% of your reported income can go towards your mortgage payment.
if your income is exactly $77000 then your monthy payments including insurance property tax can not exceed $2117.. this is also if you do not have any installment payments i.e car lease,car financing,student loan,etc..

[MarkS]

I believe now they  allow a duplex(possibly a townhouse) .

It definitely works for townhouses. I have a few friends who bought townhouses with it.

Btw, I calculated on a $300K loan you save 100K in interest payments over 30 years compared to a 3.5 interest rate!!