NJ First-Time Home Buyers


Q. Is Now a Good Time to Buy a Home?

Time to Buy?You have probably heard every side of the story ... Are we at the bottom of the market? Is it a good time to purchase? And countless others. If you have created a relationship with a real estate professional, one that keeps you updated on the market and relates it to your personal goals, then you may well know the right information that you need.  (If not, consider reading this recent article about the benefits of having professional relationships.) 

Here is a short list to help those on the fence to better know which side to fall on.

  1. If you are a first-time buyer it is truly a no-brainer.  Mortgage rates are awesome, the government is giving $7500 tax credits for buying your first home (or if you haven't owned in 3+ years), and housing prices are the lowest in years.  As far as financing programs go, don't believe the fear the media protrudes.  There is 100% financing in many areas, and 97% financing in almost every single area, save the very high-end.  If need be, there are county and state grant programs in place to help with the down payment and closing cost requirements.  You may get in a home, literally, with $0.
  2. If you are selling and purchasing the picture may be much better than you think.  Maybe you have heard it before; Real estate is relative. The fear of the recent depreciation of your current home, and having to sell it for less than you could a couple of years ago, can be replaced with the knowledge that the home you are moving up into is going to cost you that much less to purchase.  (Check out this great article about Selling Your Home in a Buyer's Market).
  3. FHA down-payment requirements are going up on Jan 1st, 2009.  If you are truly on the fence right now, maybe the extra .5% will help you.  FHA down-payment requirements are going from 3% to 3.5%.  For some this is insignificant.  But for others, it is the difference between a new home and a new rental lease. 

Find a professional to give you straight, accurate advice. It shouldn't be your job to decipher what the real estate and mortgage market is truly doing. There are professionals to do that for you. You have your own career to deal with.

Mortgage Interest Rates*

Rates as of Monday, 8th December, 2008:
  Conforming APR Payment per
Jumbo APR Payment per
30-Yr Fixed 5.25% 5.509% $5.52 5.875% 5.967% $5.92
NJ First-Time Buyer 7% 7.148% $6.65 7% 7.099% $6.65
100% Financing 5.5% 5.635% $5.68 5.5% 5.590% $5.68
15-Yr Fixed 5.125% 5.604% $7.97 5.75% 5.905% $8.30
*Rates are subject to change due to market fluctuations and borrower's eligibility.
Interest rates above are based on 30-day locks with one point. The conforming loan amount used for this ratesheet is $200,000 with a $250,000 purchase price. Non-conforming l/a of $500,000 based on $650,000 purchase price. Credit challenged, recent bankruptcy, first-time buyers, 100% financing, investment properties, and commercial financing available. Treasury Mortgage/Aurora Financial Group is licensed by the NJ Dept of Banking and Insurance.

Comment balloon 5 commentsStephen Kappre • December 08 2008 10:40PM


Great post!  Thanks for putting it all in one place!  With links to other great posts!


Posted by Gail Szeluga & JoAnna Siminerio, Fostering Community Spirit Through Real Estate (Weichert Realtors - Manalapan - Marlboro) over 10 years ago


Great post Steve.  Do you know when the NJ First Time Buyer program rate is due to be revised?  It is lagging right now.


Paul Howard

Posted by Paul Howard, Paul Howard Realty, 856-488-8444 (Paul Howard, Broker, Paul Howard Realty 856-488-8444) over 10 years ago

JoAnna Siminerio - thanks for the kind words.

Paul - I think it is currently lagging behind because of the influx of such loans when the market changed - they ended up getting too much business. Sort of like the NJ police and Fire program only being for first time buyers now. It used to be an excellent rate on the program - now you have to pay much extra for the state grant money.


Posted by Stephen Kappre, Helping You Home (KW Hometown) over 10 years ago

Steve - all good points, and when you add the homesteps program to the list, it makes it even better right now.

Posted by Mike Saunders (Lanier Partners) over 10 years ago

Steve - well instructed piece. The importance of developing relationships with professionals cannot be minimized.

Posted by Fred Chamberlin, Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant (Guild Mortgage Co - Oak Harbor WA) over 10 years ago

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