Buying a home in New Jersey for no money down — and you thought it was impossible!

No down payment home purchase in New Jersey

Buy a home for no down payment

A first-time home buyer asked me last week how much she’d need to save up for a down payment before she can buy a home. I told her that she might not need to save any money for a downpayment; she can buy a home for no money down in many parts of New Jersey. I’ve also spoken to many, many Realtors that have no idea you can still finance 100% of your home purchase in many cases. In fact, you may even be able to buy a home with less money upfront than you’d need to move into a rental property.

New Jersey Homes for sale with no down payment

The USDA (United States Department of Agriculture) has a no-money down home loan program (starting to sound a little crazy already, huh?) to encourage or facilitate buying a home in ‘rural’ areas. Yeah, I know what you are thinking, “Jim, this is New Jersey, I’m not a farmer and I’m not looking to buy a home in a rural area.” I know. But ‘rural’ is defined fairly loosely in this instance. For example, many parts of New Jersey, including much of Mercer County, some of Middlesex County, and almost all of South Jersey, Hunterdon County and Warren County, to name a few areas, are eligible for this zero  down payment home mortgage. Unfortunately, this program is not available in our cities and more densely populated areas (Trenton, Princeton, North Brunswick, New Brunswick, Edison are all excluded).  But if you are looking for a home in East Windsor, most of South Brunswick, Hopewell, Plainsboro, West Windsor,  parts of Lawrenceville, Cranbury or Monroe you are in luck and might be able to move in with no down payment at all!

It even gets better, unlike conventional loans (which now require 10 to 20% down payments) and FHA loans (3.5% down payment minimum) the USDA Rural Home Loan doesn’t even require expensive private mortgage insurance (PMI) or a mortgage insurance premium.

  • Offers better terms than an FHA or conventional loans
  • Lower Rates and $0 Down Financing
  • No Private Mortgage Insurance
  • Lower income families and those with blemished credit can qualify

There are some restrictions however. As I stated before there are geographic limitations. There is also an income limit. In NJ you can earn up to $122,000/year (depending on the area and the size of your family). This also has to be your primary residence, not an investment or vacation property. Other than that, there aren’t too many other restrictions.

If you thought you couldn’t buy yet or if you thought you’d need to find a home to rent until you can save up a down payment, give me a call and we’ll see if this option is right for you. And if you are considering selling your home, wouldn’t you rather talk to an agent that has a few extra ways of financing a home and getting more buyers interested in your home? Call me at 609-529-0822 or fill in the contact form below and let’s get to work!

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