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New Jersey VA Loans

What are VA Home Loans?
VA Loans provide military veterans and current service members a distinct advantage when it comes time to purchase or refinance a home. Today's VA Loans have the most favorable terms available for most veterans. VA Loans can be used to purchase a new home with no down payment with no mortgage insurance or refinance up to 90% of a homes current equity.

What are the eligibility requirements for a VA Loan in New Jersey?

DUE TO STATE LAW, ENG LENDING DOES NOT LEND IN NEW JERSEY AT THIS TIME.

Veterans Affairs loan guidelines use two methods of income qualification in New Jersey. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). Using this ratio, the veteran's total debt should not exceed 41% of the veteran's total income. Most lenders will require at least a 620 credit score for a VA Loan approval.

How much can I borrow?
The maximum VA Mortgage amount is determined by:

Maximum VA Loan in New Jersey: The largest loan allowed for VA mortgages with zero down is $417,000 in NJ.

Maximum Finance: For purchase transactions, the Maximum VA Loan will be 100% of the lower of the selling price or the appraised value.

What will the down payment and closing costs be?
New Jersey VA loans have zero money down up to $417,000 in most counties.

What property types are allowed for VA Loans in New Jersey?
VA Loans may be used to purchase or refinance single family residences and VA approved condo projects if the property is the veteran's primary residence.

Can I do a VA refinance in New Jersey?
Three kinds of VA Refinance programs are available for veterans in New Jersey.

. Rate/Term VA Refinance
The Rate/Term VA Refinance can be used to refinance a conventional, FHA or subprime mortgage into a stable, fixed rate VA Loan.

. VA Cash-Out Refinance
A Cash-Out VA Refinance is very beneficial for the veteran who wants to access the equity that they have built up in their home. VA Loans can be used to refinance up to 90% of a homes current value and take cash out for any reason.

. VA Interest Rate Reduction Loan (IRRRL) "Streamline Refinance"
A VA Streamline refinance loan can reduce the interest and monthly payment on current VA loans with no appraisal or income verification.

How much can I refinance in New Jersey?
The maximum amount for an NJ VA loan is determined by:

. Maximum VA Loan in New Jersey: The largest loan allowed for a VA Mortgage varies from county to county. The highest maximum VA Mortgage right now is $1,094,625. The lowest maximum VA Mortgage amount available in any county is $417,000. To see what the limit is in the county in which you're interested, visit the following page http://www.homeloans.va.gov/docs/2009_county_loan_limits.pdf. This site lists U.S. territories as well as states.

. Maximum Finance: In New Jersey, The maximum VA refinance loan amount will be 100% of the appraised value of the home for a rate/term refinance or 90% of the appraised value for a VA cash out refinance.

What factors determine if I am eligible for a VA Refinance Loan?
VA refinance loans use two methods for income qualification purposes in New Jersey. The residual income method is the primary method, where it is determined that the borrower has sufficient income to cover daily living costs once housing, taxes, insurance and all other liabilities like credit card and auto payments have been made. Additionally, VA loans use a debt to income ratio (DTI). Using this ratio, the veteran's total debt should not exceed 41% of the veteran's total income. Most lenders will require at least a 620 credit score for a VA Loan approval.

More information about VA Refinance.

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 Why choose a VA Mortgage?

  • New Jersey VA Mortgages require no down payment.
  • There are no prepayment penalties for VA Home Loans.
  • A New Jersey VA Mortgage Loan has no monthly mortgage insurance.
  • VA Mortgage Loans have no PMI premiums.
  • A VA Mortgage Loan is eligible for non-credit qualifying, Streamline Refinance or "IRRRL".
  • A VA Home Mortgage can be obtained in all areas or the United States, provided that the property meets the minimum VA Loan Requirements.
  • A VA Home Loan can be obtained to refinance or purchase a new or pre-existing home with zero down.
  • New Jersey VA Loans are offered at terms of 15 or 30 years.



. VA Refinance Questions & Answers

What are VA Refinance Requirements?
VA Loans can be used to refinance up to 90% of a homes current appraised value for cash out or interest rate reduction.

What are some of the advantages of a VA Home Loan?
VA refinance loans offer the most favorable terms available to veteran's when compared to other loan types in most cases. VA Loans can be used to purchase or refinance with no pre-payment penalty and no mortgage insurance at a great, low interest rate and fully amortized payment.

How much equity is required in my home to obtain a VA Refinance Loan?
At the present time, VA Refinance can be used to get cash out of 90% of a home's current equity. A refinance to lower the interest rate can also be done up to 90% of the home's appraised value, as determined by the VA.

Does it matter that the value of my home is now less than what I still owe?
Not to VA, but the current mortgage lender considering the refinance would have to be willing to accept a short payoff on the existing loan OR to hold a second mortgage to make up the difference needed to pay off the existing mortgage and the home’s value.

I have already obtained one VA loan. Can I get another one?
Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property.

Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don’t own the property anymore. Can I still obtain a VA guaranteed home loan?
Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.

Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. If you wish to make application for the home loan benefit as a surviving spouse, please contact us.


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