Is there an alternative to FHA loan in Elizabeth New Jersey

Mortgage and Lending with TD Bank 466521

Is there an alternative to FHA loan in Elizabeth 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%. 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.

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

CRA Programs offers you to buy multi-unit property up to 2 units by making 5 % down payment or 3-4 unit with 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 from the other units will compensate partially or fully the mortgage payment.


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Advantages of Choosing a More Affordable Home.

If your mortgage payments are lower, you can also pay up your loan faster which saves you thousands of dollars’ worth of interest. Furthermore, you can also use the extra cash to add up on amenities and upgrades to remodel your home! 

Choosing a more affordable home also provides you with peace of mind and financial stability later on, especially if the rates increase in the future or any other unfortunate circumstances arise. This way, you will be able to keep up with the payments in case of any financial upheaval and the risk of losing your home altogether decreases substantially. A little planning today goes a long way in securing your finances and your home in the future! Therefore, the next time you start thinking whether or not you can afford buying a particular house, make sure you consider all these factors before making a final decision. Good luck and happy house hunting! 

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.

Fun Facts about New Jersey!

New Jersey has the most diners in the world.

Atlantic City New Jersey the longest boardwalk in the world.

Newark Liberty International airport is the nations busiest airport.

The Pulaski Skyway was the first skyway ever built.

The first baseball game was played in Hoboken, New Jersey.

The Statue of Liberty and Ellis Island are actually in New Jersey.

There are more Cubans in Union City, New Jersey than Havana, Cuba.

The first medical center was opened in Jersey City, New Jersey.

Is there an alternative to FHA loan in Woodbridge 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 (4)

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

Tony, great information for buyers looking for information for a loan to buy a home in NJ.

Mar 04, 2022 03:16 PM
Tony Busanich
TD Bank - Freehold, NJ

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

Mar 05, 2022 09:04 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Hi Tony, haven't seen you for a while, thought I would stop by and say - have a great weekend!

Apr 15, 2022 12:16 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ok, Tony, it has been a year since you posted, time for another blog please!  Miss you!

Mar 26, 2023 10:16 AM