Community Reinvestment Act 3% Down Mortgage Program for First Time Home Buyers

Real Estate Agent with Weichert, Realtors; Hillsborough 7802605

3% Down Financing Available with no PMI... Census Tract Based Financing 


A CRA home loan is originated by a federally regulated bank or mortgage lender that is obligated to meet the requirements of the Community Reinvestment Act (CRA) of 1977. Some banks refer to these loan products as “portfolio loans.”   Typically the largest of the federally-regulated banks have created special CRA home loan programs that are designed to meet the needs of low and moderate income households in their service area.

To be eligible for a CRA home loan program the following are some examples of typical requirements across the various programs:

  • You must be low or moderate income (earning 80% or less than the area median) or that the property is located in a low to moderate income census tract.
  • You must own and occupy the home you are financing.
  • The borrower and co-borrower must complete home buyer education provided by a HUD certified housing counseling agency.

Meeting a CRA loan programs underwriting or credit standards is often easier than qualifying for other types of loans. Depending on the program, you may still qualify for an CRA home loan with a lower credit score and some lenders still allow you to build an alternate credit history if needed.

CRA home loan programs are not well marketed by the various lenders and they are not always available from all loan officers at a particular bank.  For this reason you may need seek specific CRA loan officer at the bank who you are inquiring with in order to access a CRA home loan product. Weichert Financial can help you with this loan so feel free to conaact me for the information. 

Program Highlights & Features Include:

  • As Little As 3% Down

  • 1-4 Family Properties

  • Condos & PUD’s must be Fannie Mae/Freddie Mac Warrantable

  • Free Mortgage Insurance (660 Fico plus)

  • 6% Sellers Concession

  • 30 Year Fixed Mortgage

  • Rates Better Than Conventional

  • Maximus Loan Amount $484,350—SFR / $620,200—2 Units

This includes, but is not limited to, many sections of:  Bloomfield, Clifton, Elizabeth, Dover, Bound Brook, Manville, Linden, Rahway, Roselle, Roselle Park, Newark, East Orange, West Orange, Plainfield, North Plainfield, New Brunswick, South River, and Union, NJ to name a few.

Private Mortgage Insurance (PMI) is an insurance premium required by lenders on nearly all Conventional home loans when a buyer places less than 20% down. This PMI premium is then added to the mortgage payment each month and can add hundreds to the buyers payment.

For FHA home loans, another popular low-down payment program, the monthly insurance premiums are mandatory and can be very expensive. The FHA loan also carries an upfront insurance premium.



Real Estate Market Recap of Hillsborough, NJ; August 2012                                             Real Estate Market Recap of Hillsborough, NJ; August 2012


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Comments (1)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Great information Carol to sahre with us here in the Rain, hope you blog a couple of times to get over 500,000

Apr 01, 2020 10:01 AM