Lakewood: Awesome Mortgage program for 1st time buyers

[AI-TRAVEL]

Just spoke to Dennis from TD and he informed me that for Ocean County the rules just changed in order to be eligible for first time home owners.... as of this week the max you can earn per year was lowered from 77000 to 62000!! a drop of 15000 bucks!! not so sure I can make it work for myself now.... gotta figure it out.

Thats bad. If anybody knows with that number what the biggest mortgage you could get?

[smiley face]

Just spoke to Dennis from TD and he informed me that for Ocean County the rules just changed in order to be eligible for first time home owners.... as of this week the max you can earn per year was lowered from 77000 to 62000!! a drop of 15000 bucks!! not so sure I can make it work for myself now.... gotta figure it out.

Wow this is really bad!! I was hoping they would increase it... Meaning that I would be able to take out a bigger mortgage.
Wonder if this is going to change?

[churnbabychurn]

Thats bad. If anybody knows with that number what the biggest mortgage you could get?

according the wiki monthly home expense cannot exceed a third of the monthly income.
Basically a very small mortgage.

[MarkS]

62,000 /12 months  = $5,166 income per month.    $5,166/3 = $1,722 allowable monthly mortgage payment including property tax and insurance.

 Assuming (a made up) property tax amount of $5,000, and 850 Insurance,        $5,850/12 = $487 a month.
$1,722 - $487 = $1,235 allowed toward mortgage payment.

at a rate of 2.625, with a house costing you $315,000, you would put down $15K and borrow $3,000 with monthly payments of $1,204 for a total monthly payment of:
$1,204 Mortgage
$487 Insurance and property tax
Total:$1,691

This is only if your income is exactly at $62K. The less you make the less you can borrow...

[churnbabychurn]

62,000 /12 months  = $5,166 income per month.    $5,166/3 = $1,722 allowable monthly mortgage payment including property tax and insurance.

 Assuming (a made up) property tax amount of $5,000, and 850 Insurance,        $5,850/12 = $487 a month.
$1,722 - $487 = $1,235 allowed toward mortgage payment.

at a rate of 2.625, with a house costing you $315,000, you would put down $15K and borrow $3,000 with monthly payments of $1,204 for a total monthly payment of:
$1,204 Mortgage
$487 Insurance and property tax
Total:$1,691

This is only if your income is exactly at $62K. The less you make the less you can borrow...

Thanks for doing the math! Realistically taxes in lakewood on a 315k property are closer to 8500. total borrowing would be reduced to _____?

[MarkS]

Thanks for doing the math! Realistically taxes in lakewood on a 315k property are closer to 8500. total borrowing would be reduced to _____?

Do some math yourself!
Go to http://www.mortgagecalculator.org/ and put in a sample loan amount, interest rate, and put zero by PMI and property tax%.
A more realistic property tax is $6,500.

[churnbabychurn]

Do some math yourself!
Go to http://www.mortgagecalculator.org/ and put in a sample loan amount, interest rate, and put zero by PMI and property tax%.
A more realistic property tax is $6,500.

Ok, turns out the mak property value assuming 5% down would be 280,
loan amount 265, interest rate of 2.625 and tax rate of 2.634= Monthly payments of 1,678 +insurance of ~65 a month.

And taxes on 315*.02634= 8297 unless they assess value of property less? (ive heard that they only do 89% ?)

Bottom line very few houses qualify.

[MarkS]

Ok, turns out the mak property value assuming 5% down would be 280,
loan amount 265, interest rate of 2.625 and tax rate of 2.634= Monthly payments of 1,678 +insurance of ~65 a month.


Bottom line very few houses qualify.

The tax rate that the township says isn't an accurate measure.
Most houses in town are assessed at 80% or less of their value for property tax purposes.
Mine is 75%.

Ie if a house is worth $300K for example, the township will say $225K and apply 2.634 to that for a total of $5,926.

[churnbabychurn]

The tax rate that the township says isn't an accurate measure.
Most houses in town are assessed at 80% or less of their value for property tax purposes.
Mine is 75%.

Ie if a house is worth $300K for example, the township will say $225K and apply 2.634 to that for a total of $5,926.

I've heard that they have an official formula. (They should!) I seem to remember that they take 89% of their assessed market value and then apply the rate..
I have seen properties though assessed  by the twnshp at less than 89%.. Not sure how it works?

[MarkS]

I just called the tax office. The said they take 86% off the homes value before applying the tax rate.

 I somehow have another 10% off so I dont know where they grt their home value amount from

[churnbabychurn]

I just called the tax office. The said they take 86% off the homes value before applying the tax rate.

 I somehow have another 10% off so I dont know where they grt their home value amount from

I wouldnt complain! Some are assessed high but most houses are way undervalued even accounting for the 86%. I recently had an eisek with a coventry house that was purchased 4 months ago for 220, tax assessor said its worth 171 which is only 77% of the obvious FMV. The twnshp assessor is not the most competent.
 

[robi]

I just called the tax office. The said they take 86% off the homes value before applying the tax rate.

 I somehow have another 10% off so I dont know where they grt their home value amount from

officially, they aren't supposed to look at purchase price. Realistically they assess anywhere between 70%-100% of purchase price

[churnbabychurn]

officially, they aren't supposed to look at purchase price. Realistically they assess anywhere between 70%-100% of purchase price

make that 70-130% no?

[shnoz]

Did anyone ever inquire with santander as to what their first time home buyer options are? Is it a smaller down payment? A lower credit score required? No pmi? Or all or none of the above? I haven't had a chance to call them yet.

Santander is a quarter point lower than the going rate, and has a dti of up to 45% making it much easier to qualify, pretty sure 5% down

Do any of the banks that offer first time home buyers (td, sandtana....)offer to help cover the closing costs?

Investors gives you 2k

[churnbabychurn]

Santander is a quarter point lower than the going rate, and has a dti of up to 45% making it much easier to qualify, pretty sure 5% downInvestors gives you 2k

DTI=Debt to income? Does Debt=total monthly housing costs?

[shnoz]

DTI=Debt to income? Does Debt=total monthly housing costs?

Yes, total monthly housing costs + car lease, auto loans etc

[churnbabychurn]

Does santander or anyone currently recognize basement rental income in the DTI calculation?

[Rivky]

So does anyone know how they calculate income? Is their a specific way? Last yr tax return and current salary arent the same.

[churnbabychurn]

So does anyone know how they calculate income? Is their a specific way? Last yr tax return and current salary arent the same.

Its posted upthread that they look at paystubs also.

[bingit]

im looking to apply for a mortgage thru this program... has anyone out there gone thru this program that can help me out with a few questions I have regarding income req. if you can please PM me it would be a big help for me.... (LRRC is impossible to get thru to!!) Thanks!