Is there an alternative to FHA loan with 3.5% down-payment in Toms River, New Jersey?

Mortgage and Lending with TD Bank 466521

Is there an alternative to FHA loan with 3.5% down-payment in Toms River, New Jersey?

Is there a better option for a low-down payment then an FHA loan? The answer maybe yes! First-time homebuyers as well as repeat buyers longed-for a home mortgage with a low-down payment of 3.5%. At this time FHA loan remains the best choice not for long. Lenders are moving to CRA Community Reinvestment Act loans. This option may be better for some homebuyers and people looking to refinance a traditional FHA loan. One Out of every five buyers, chooses a FHA loan, with more options being availability this may shortly change. FHA loan are popular because it requires just 3.5 % down payment. Moreover, FHA mortgage rates are lower as compared with others. It also has flexible underwriting standards. This is really attractive especially when you have high mortgage rates in the competitive real estate market like today. While CRA offer the same, the added value to CRA is that lenders are offering NO MIP programs with their loans.

The loans choices for home buyers:  

Home buyers now have a diverse range of loans available. Fannie Mae and Freddie Mac provide conventional loans, USDA and Department of Veterans Affairs provides 100% loans, and CRA Community Reinvestment Act. The top choice with buyers remains the FHA loan but not for long with new options from lenders. CRA offer low mortgage rates, lesser down payment and easy lending guidelines it maybe the new choice of home buyers.

Let’s look at some of the benefits of a CRA loan.

Mortgage Insurance Premium (MIP) Program:

MIP is an important part of the CRA mortgage. That’s the reason most people choose to seek CRA loans instead of FHA. The cost of the mortgage insurance (MI) maybe paid by the bank depending on the borrower's credit score and location of the property where there buying or refinancing a home. 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. 

Down payment as low as 3.5 % with CRA loan:

When first-time home buyers are looking for 3.5% low-down payment conventional mortgage without PMI they now 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. With lender that offer CRA programs.  This is a huge help for those people who don’t have enough savings to make heavy down payments (20%).

Most property types are insured:

With CRA loan you can buy any type of home in any locality in the US. It doesn’t matter if you are looking for a neighborhood in any states. CRA offers insurance on 4-unit homes, 3-unit homes, 2-unit homes, single family detached homes, and condominiums.

CRA loans lower credit scores!

Lender are now accepting FICOs as low as 620 but these agencies are just the creator of guidelines on the basis of which mortgages are issued by lenders. It is recommended that you maintain your credit score at a high position.

Get an CRA loan if you want to be a landlord.

CRA offers you to buy multi-unit property up to 4 units by making 10 % down payment. Your selected property should be multi-unit, it should be a duplex, triplex or fourplex. You should make one unit as your residence putting the other units on rent. The rent taken from the other units will compensate partially or fully the mortgage payment. This arrangement can make you a landlord with lower risk while providing you potential benefits.

Broaden your Options: 

Instead of looking at only FHA Programs, do adequate research and consider all the alternate options available. A neighborhood bank, for example, maybe better choice than a reputed bank if you are low on down payment or are looking for more affordable rates. The first thing that you will need to look out for when buying a home is getting qualified for a mortgage loan. Getting a mortgage loan approved 

We Will Help You Qualify for An CRA Loan- Click here to Get Prequalify.

Is there an alternative to FHA loan with a 3.5% down-payment in Toms River, New Jersey? 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 Please contact me at 732-306-2231 or by email at . 

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

Tony, you have provided valuable information for buyers looking to buy this year, and buyers need to give you a call.

Jan 20, 2022 04:43 PM
Tony Busanich
TD Bank - Freehold, NJ

Thank you Joan for reviewing the post, once people see all the options with a low down payment loan they are better informed and can benefit from the program. 

Jan 21, 2022 06:35 AM
Roy Kelley
Retired - Gaithersburg, MD

This is very good information to share with prospective home buyers.

Jan 21, 2022 07:52 AM
Tony Busanich
TD Bank - Freehold, NJ

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

Jan 21, 2022 07:57 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Tony and thank you for the great information on this subject.  Make it a great weekend!

Jan 21, 2022 08:39 AM
Tony Busanich
TD Bank - Freehold, NJ

Thank you Will, people need options when searching for a loan that can benefit then financially. Wish you all the best. 

Jan 21, 2022 08:54 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

Homebuyers should not make these decisions alone. They need an expert like you Tony to help them with this important information!

Jan 21, 2022 11:09 AM
Tony Busanich
TD Bank - Freehold, NJ

Thank you Larry & Sheila for the nice comments. We try to help and show buyers all the options that would benefit then when it comes to financing their next home.  

Jan 22, 2022 06:50 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and have a wonderful day!

Jan 27, 2022 07:22 AM