Refinancing Rehabilitation: A Unique Solution for New Jersey

By AJ Fanter
Local Lender Columnist
Oct 9, 2006
The New Jersey Housing and Mortgage Finance Agency (NJHMFA) offers a unique assistance program for homeowners. If you qualify, they will assist with the refinancing of a home as long as a portion of the refinancing is used for the "rehabilitation" of your New Jersey home.

Known as the Refinance Rehabilitation Program, this New Jersey refinancing program offers fixed-interest, 30-year mortgage refinancing loans that are insured under FHA 203(k) guidelines. While the loans are available to both new and existing homeowners, you must meet specific location and income guidelines in order to participate in the program. The main qualification is that a portion of the loan fees must be used to rehabilitate the property you live in.

Rehab Refinancing Costs

Along with the actual loan payments and standard closing costs, there are some additional fees associated with the Refinance Rehabilitation Program. In addition to paying a 1 ½ percent portion of the mortgage towards rehabilitation (at least $350), you must pay for four $50 inspections and put down at least 1 percent of the loan at the time of closing. Along with these costs, you must also plan to move into your New Jersey property no later than 60 days after completion of the rehab work, and live in that home during the life of the loan.

Refinancing Your New Jersey Mortgage

If you're looking to refinance your New Jersey mortgage and wouldn't mind some substantive home improvement projects, then the NJHMFA Refinance Rehabilitation Program could be an excellent opportunity to fix up your home, while potentially reducing your house payment.

Source:
New Jersey Housing and Mortgage Finance Agency

About the Author
AJ Fanter is a freelance writer based in Reno, NV.