Down Payment Assistance Available

The primary obstacle of purchasing a home is coming up with the funds required for down payment, closing costs and pre paid expenses such as taxes and homeowners insurance. Some would be home buyers simply struggle to save the required amount, but realize that owning a home is still in their best interest, and something they desire. Other home buyers have saved the funds necessary, but are reluctant to tie up all of their assets into the home, and not have an emergency fund left over.

In either case, qualified first time home buyers may be eligible for a loan program which offers a second mortgage, up to 4% of the first mortgage, to be utilized toward down payment or closings. For example, someone is purchasing a home for $250,000, with a 5% down payment. The down payment required in this case is $12,500, resulting in a first mortgage amount of $237,500. Qualified borrowers can be eligible for a second lien of $9,500(4% of $237,500), which can be applied toward the down payment and closing costs.

Think of this second mortgage as a “silent loan”. No payment is due on this second mortgage, which carries an interest rate of 0%. As long as the home buyer lives in the home for the next 5 years, does not sell, refinance or rent the property out to someone, the entire second lien of $9,500 is deemed satisfied, and fully forgiven, with no payments having been made. The lender will send the homeowner a cancellation of mortgage, or release of lien, for this second mortgage.

This loan program is eligible to qualified first time home buyers only. While not available in every municipality in NJ, many towns and areas are indeed eligible. To see if you qualify for the program, and if your desired town is eligible as well, please feel free to reach out to Thomas E. Smith, American United Mortgage Corporation, 908-322-5623.

Thomas E. Smith is Vice President of Residential Lending for American Mortgage.  He is a First Time Homebuyer Specialist and can assist with both purchase and refinance loans.

Visit us at www.AmericanUnited.com

The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Scotch Plains/Fanwood

Why We Keep Kosher

Why We Keep Kosher

This week's parshah, Shemini, introduces the Torah's dietary laws. Animals must chew their cud and have split hooves to be kosher, fish need fins and scales, and a list of forbidden fowl is enumerated.

To those of us in Jewish education, it is a continuing source of disappointment that so many Jews still believe the kosher laws to be outdated.

Politics IS Government in Union County

April 21, 2018

Dear Editor:

After Bruce Patterson of Garwood was stopped from speaking at the Union County Freeholder meeting of March 22 regarding the politics behind refusing to give the party line to a sitting Freeholder, I thought this brazen suppression of free speech could not go unanswered.

At the April 19 meeting I answered with these comments.

After ten years of following government in Union ...

Helping Teenagers Deal with Prom Night Stress

April 18, 2018

Prom can be one of the most exciting times for your teenager but at the same time one of the most stressful. 

It can also be very stressful for parents as they prepare themselves to accept that their teenager is graduating and soon going away to school, while planning a weekend away after prom night. Going to the Shore for the weekend or somewhere overnight has become more of the ...

Reps. Watson Coleman, Pallone, Sires and Espaillat Lead Introduction of Commonsense Gun Violence Prevention Legislation

April 25, 2018

WASHINGTON, DC  — Today, Congresswoman Bonnie Watson Coleman (D-NJ) joined co-sponsors Congressmen Frank Pallone (D-NJ), Albio Sires (D-NJ) and Adriano Espaillat (D-NY) to announce The Handgun Licensing and Registration Act of 2018. This legislation would overturn an outdated 1986 law to build a framework of commonsense standards for handgun gun ownership in the U.S. by creating a ...