FAQ
Mortgage answers, plain English.
Straight answers for New Jersey buyers and homeowners, from the JahnLends team in Woodbridge.
Buying a home in New Jersey
How much house can I afford?
A common rule is housing costs of 28% or less of gross income and total debt of 36% or less (the 28/36 rule). We'll run an exact number on a 10-minute call, or you can try the payment calculator first.
What's the lowest down payment available?
0% with VA or USDA, 3% with first-time conventional, 3.5% with FHA. Down payment assistance can reduce what you bring to closing further.
Do you work with first-time buyers?
Yes, it's a specialty. We pair FHA, conventional 3%, and down payment assistance to get you in with as little out of pocket as possible.
Is there down payment assistance in New Jersey?
Yes. NJHMFA's Smart Start program provides $15,000 in Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, and Union counties and $10,000 in the other counties. Smart Start Plus First-Generation provides $22,000 or $17,000 by the same county split. It is a 0% second loan with no monthly payment that is forgiven after five years if you keep living in the home. Income and purchase price limits apply.
Can I combine NJHMFA assistance with an FHA loan?
Yes. The assistance is paired with an NJHMFA first mortgage, a 30-year fixed FHA, VA, or USDA loan offered through the agency, and closed through a participating lender or broker.
What if the condo I want is not FHA approved?
You may still have options, such as conventional financing or a different loan program, depending on the building. Our guide explains how to check a condo's status and what to do next.
Credit and qualifying
What credit score do I need to buy a home?
620 for most conventional loans, 580 for FHA with 3.5% down, and 500 for FHA with 10% down. We have programs for nearly every situation.
Can self-employed buyers get a mortgage?
Absolutely. Bank statement loans use 12 to 24 months of deposits instead of tax returns.
What if I've been denied by another lender?
We see denied loans every week. Our wholesale lender network gives us options banks don't have.
What docs do I need?
Pay stubs (last 30 days), W-2s or tax returns (2 years), bank statements (2 months), and ID. We send a checklist.
Loan types and costs
What's PMI and how do I avoid it?
Private Mortgage Insurance applies when you put less than 20% down on a conventional loan. It drops off automatically at 22% equity.
What is a jumbo loan?
A jumbo loan is a mortgage above the conforming loan limits that Fannie Mae and Freddie Mac will buy. Jumbo programs have their own credit, reserve, and down payment requirements.
What's a HELOC vs cash-out refinance?
A HELOC adds a separate second loan against your equity. A cash-out refinance replaces your whole mortgage with a new, larger one and pays you the difference.
Should I refinance?
If you can drop your rate by 0.5 to 0.75 percentage points and stay in the home long enough to recoup closing costs, refinancing usually pays off.
Are closing costs negotiable?
Some line items are. We also offer no-closing-cost programs that roll costs into the rate.
The process
What's the difference between pre-qualification and pre-approval?
Pre-qualification is a quick, soft-pull estimate. Pre-approval is a full application with a credit pull and underwriting review, and sellers take it more seriously.
How long does closing take?
Most purchase loans close in 21 to 30 days. Refinances take 30 to 45 days on average.
Can I lock my rate?
Yes, typically 30, 45, or 60 days at no cost, with extended locks available for new construction.
About JahnLends
What is JahnLends?
JahnLends is the residential mortgage team of Jahn Beckler, who runs, operates, and manages the Woodbridge, NJ branch of AMS Mortgage Services (NMLS #145742). We help New Jersey buyers and homeowners with purchase, refinance, FHA, VA, jumbo, and alternative-documentation loans.
Is JahnLends legit?
JahnLends operates under AMS Mortgage Services, NMLS #145742, a licensed mortgage company. You can verify the license at nmlsconsumeraccess.org and read what clients say on our reviews page.
Is a mortgage broker better than a bank?
It depends on your file. With strong credit, W-2 income, and a large down payment, a bank may work well. With anything unusual, a broker compares many wholesale lenders and gives you more options.
Do you serve outside NJ?
Yes. AMS Mortgage is licensed in 9 states: NJ, NY, PA, CT, FL, GA, NC, TX, and CA.
Don't see your question? Ask the team or start a pre-qualification.