With as little as 3.5% down first time homebuyers are buying in Edison, NJ?

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Mortgage and Lending with TD Bank 466521

With as little as 3.5% down first time homebuyers are buying in Edison, NJ?

When first-time home buyers are looking for 3.5% low-down payment conventional mortgage without PMI they offer have many options but aren’t sure where to look. A minimum of 20 percent down payment is not the standard anymore. New first-time homebuyer programs are available with as little as 3.5% down.  The cost of the mortgage insurance (MI) maybe paid by the bank depending on the borrower's credit score and location of the property there buying. Borrowers with lower credit scores may be better off with an FHA loan. The disadvantage with FHA loans is that the borrower cannot cancel the MI for an FHA loan. The only way to get out of it is by refinancing into a conventional loan.

Aside from the down payment, there are certain other factors that can contribute on your status as a strong borrower in the eyes of your lender. For example, having a decent credit score can help you get financing more quickly and this also increases your chances of getting a better interest rate.

Here are a few tips that can help you get eligible and help you shop for good low-down payment conventional mortgage without PMI:  

A Good Credit history -When applying for a home loan, the lender is looking for no bankruptcies, foreclosures, repossessions or late payments. 

Stable Employment - Lenders want to see two o years stable employment at the same job or the same type of job. If you are self-employed, banks will request a minimum of two years of professionally prepared tax statements.

Seasoned Savings - The lender will ask to see your seasoned savings when applying for a loan. Seasoned savings are important because they show the underwriter your ability to save money and your financial stability.

Low Debt to Income Ratios - Low credit card balances shows a responsible approach to paying your obligations. If you have high credit card balances and car payments, you might not qualify for a loan. The number of open credit accounts and high limits could go against you as well in qualifying for a home loan.

Rent Checks - If you are a renter, bankers will often request months of canceled rent checks to verify your "housing" payments. These checks will indicate how responsible you are paying your housing bills.

No Outstanding Lawsuits - This includes judgments and liens. Current law suits could kill your ability to receive a loan.

Dual Income Family - When purchasing a two-family income is an insurance policy to some degree that the mortgage payment will be paid in the event of job loss. Banks are looking for financial stability when approving home loans.

Broaden your Options:

Instead of looking at the big banks only, do adequate research and consider all the alternate options available. A neighborhood bank, for example, is a better choice than a reputed bank if you are low on down payment or are looking for more affordable rates. Ask your friends and family etc, for good recommendations and you can land a decent and affordable loan without much hassle!

With as little as 3.5% first time homebuyers are buying in Edson, NJ by Tony Busanich a loan officer with TD Bank, a portfolio lender from Maine to Florida. You can trust TD Bank to deliver a superior mortgage experience. Whether you’re purchasing or refinancing, we provide straightforward, easy-to-understand products and advice, allowing you to make smart borrowing decisions that meet your needs today and tomorrow. My web site at www.tdbank.com/tonybusanich Please contact me at 732-306-2231 or by email at anthony.busanich@td.com .

Comments (9)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Great post Tony, and so many first time buyers are lacking down payment, and need to keep their payments low too just to get into their first home.

Oct 14, 2021 11:20 AM
Tony Busanich
TD Bank - Freehold, NJ
1-4 FAMILY HOME LOAN SPECIALIST

Thank you Joan, yes i agree first time home buyer are looking to keep their payment low. 

Oct 17, 2021 08:15 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

The low down payments and the very low mortgage interest rates appeal to smart consumers. 

Have an outstanding week.

Oct 17, 2021 08:37 AM
Tony Busanich
TD Bank - Freehold, NJ
1-4 FAMILY HOME LOAN SPECIALIST

Thank you Roy for viewing my post, hope you have a great day. 

Oct 17, 2021 08:43 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

First-time homebuyers usually have lots of questions. Speaking to a mortgage specialist at the beginning of their journey is a smart idea.

Oct 17, 2021 12:08 PM
Tony Busanich
TD Bank - Freehold, NJ
1-4 FAMILY HOME LOAN SPECIALIST

Thanks Larry & Sheila for viewing my post, i agree you should have a specialist at the start of your journey. 

Oct 18, 2021 06:47 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

Great post with valuable information for home buyer's to read. Thanks for sharing. I hope you have a great weekend.

Oct 22, 2021 01:51 PM
Tony Busanich

Thank you Pat for stopping by, I really appreciate the feedback.

Oct 23, 2021 05:30 AM
Tony Busanich
TD Bank - Freehold, NJ
1-4 FAMILY HOME LOAN SPECIALIST

Thank you Pat for stopping by. Wish you all the best.

Oct 22, 2021 04:26 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Tony, so many buyers think they need 20%, and this program would be so helpful to many.

Oct 26, 2021 06:49 AM
Tony Busanich

Thank you Joan for stopping by, buyers don't realize that they can find a program with 3.50% down payment and not have to pay the PMI. 

Oct 26, 2021 11:21 AM