The New Jersey Down Payment Assistance Program

Recently Shannon sat down with her favorite mortgage expert, Jon Lamkin, with Guaranteed Rate. He is the cream of the crop in the mortgage industry. Jon and Shannon talked about the exciting new New Jersey Mortgage program, the New Jersey Down Payment Assistance Program. Additional funding from Hurricane Sandy left New Jersey with some extra monies. The state has allocated the $3 million dollars left to be used to assist first-time homebuyers with up to $16,000 towards their down payment and/or closing costs. The program is designed for 6 counties in New Jersey. Essex, Union, and Passaic counties are the areas that Shannon and Jon service that qualify for the program. The program is specifically for first-time homebuyers, and there are income restrictions. Families earning $131,000 or less would qualify for the program. A minimum 620 credit score is also required which is feasible as it is not an incredibly high score. Conventional, FHA, and VA mortgages are all allowed with this program. It can be used for the purchase of a single family home, multi family home, or condos.

Milleniums have really started to take advantage of this program. The program is great for people who have possibly been paying $3,000 or more a month in rent who just haven’t been able to save enough for a down payment. Even if someone does have enough to cover the down payment, sometimes they can forget about the closing costs which can be an additional 2.5 – 3%.

As an example, to purchase a $350,000 house, 20% down would be $70,000. That might not be realistic. So, suppose someone only has $35,000 to put down. That’s 10% down. But then maybe they don’t have money for closing costs. You can then take that $16,000 and put it towards some of the down payment or closing costs. Now, they have $51,000 vs. the original $35,000.

Next Shannon and Jon talked about purchasing a home with even less down, perhaps through an FHA loan. With an FHA loan, you can purchase a home with as little as 3.5% down. So, for example, if you purchase a $300,000 home, you only need $10,500 for the down payment. Perhaps the closing costs are another $10,000. That’s a total of a little of $20,500 needed. With this program, someone could purchase a home with $4,500 of their own savings and use the $16,000 to make up the rest of the costs. The pros of an FHA loan are: Interest rates are typically lower; The loan is not credit-sensitive. Cons of the FHA loan include: You do need to pay the upfront Mortgage Protection premium, with is 1.75% being added into the loan which gets financed over 30 years.

If someone uses the $16,000 New Jersey Down Payment Assistance Program, that money does not need to be paid back with interest. The $16,000 acts as a lien on the property; However, if the homeowners own their home for at least 5 years, the $16,000 loan is forgiven. Jon mentioned some people buy their first home and live it in for 3 or 4 years and then decide to move again. He said if they rent out the home, but still own it, that $16,000 would still be forgiven after 5 years. Shannon talked about the benefits of real estate investments. She said if you can get into your first property with a very small amount of money down, and then start saving money for the down payment of your second home, then, when it’s time to move out, keep that first property as rental income, even if it’s just a break-even, and let someone else pay down your mortgage for 15, 18 or 20 years, that rental income could now potentially fund a college education. With an FHA loan, however, you do have to notify the lender if you move out.

They ended their conversation with a discussion regarding current rates. Rates right now are approx. 3.75% on a 30-year fixed mortgage. Jon says it is only a matter of time before long-term interest rates are going to go up. With rates being as low as they are now, and home owner affordability being high, there are a lot of buyers out there right now.

If you are thinking of buying a home, be sure to contact the Shannon Aronson team. We’d be happy to arrange a showing for you. Curious about the area? Contact us for a FREE copy of our town snapshots. You can reach us by phone at 973.637.0004 or via email at Shannon@ShannonAronson.com. For more great real estate information, please be sure to visit my website at www.NJRealEstateDirect.com.

Buying Manhattan Real Estate – A Special Presentation from Shannon Aronson

Are you or someone you know THINKING OF MOVING TO MANHATTAN?


SHANNON ARONSON hosts a special presentation on

BUYING MANHATTAN REAL ESTATE

Purchasing a Home in New York City

with special guest presenter, top NYC agent, Julia Hoagland

February 7 from 7:30pm to 9pm at Common Lot

Join Shannon and Julia for a delightful and informative evening at Millburn’s in-demand new restaurant, Common Lot.

The prospect of moving to New York City is exciting but the process of buying a home there is complex. Make yourself an expert before you get started in your search.  Julia Hoagland is one of the Top Real Estate Agents in NYC.  Join us to learn about the buying process, the values of different neighborhoods, nuances of condos, co-ops and how to get started.

Complimentary appetizers and drinks will be served.

Seating is Limited. RSVP a MUST. Follow this link:

https://www.eventbrite.com/e/buying-manhattan-real-estate-purchasing-a-home-in-new-york-city-tickets-31683080948

 


NYC Neighborhoods

Am I Realistic About My Home Search

 

Are you asking yourself, “Am I realistic about my home search”? If so, today I’d like to talk about what to do when you’re so frustrated with house hunting that you’d like to give up.  Typically, there’s one problem going on when people are very frustrated with house hunting and it’s understanding if their expectations are realistic.  The first thing I would suggest you do if you find yourself in this situation is look back at the houses that sold in your price range during the last 12 months.  There should be about 25-35% of those houses that you think you would buy if they were on the market today.  Otherwise, that might signal that you’re not really being realistic about how much house you can get for your money.

The second thing I would suggest you do if you are questioning, “Am I realistic about my home search”, and this is very important, is understand the average list price to sell price ratio in your area.  That means you need to take a look back at the last year and understand what percentage of their listing price most sellers were getting for their home. I can tell you along the Midtown Direct train line, where I help most people buy and sell homes, that number is pretty tight, usually between 97-99% of the listing price.  So, it doesn’t often help to think you’re going to find something for 80% of the listing price.

Lastly, I would tell you, give your Realtor permission to answer this question, “Am I being realistic about my home search and how much house I can get for my money?”  Now, if after doing that, you find that maybe you’re not so realistic about how much house you can get for your money, then I would suggest you just take a good hard look at your finances, perhaps consult a financial professional or a mortgage representative, and understand if there’s any flexibility you have in potentially raising your price range a little bit.

Myself, and anyone on my team, would be happy to help you find a home.  Please feel free to contact us. We can be reached by phone at 973-637-0004 or by email at Shannon@ShannonAronson.com. For great real estate information, please don’t forget to visit my website at www.NJRealEstateDirect.com.

Charming Colonial in Short Hills


$1,390,000, 8Bd/3.5Ba Single Family House, 3248 sqft.


Shannon Aronson | Keller Williams Premier Properties | 973-214-0691shannon@shannonaronson.com |
30 Jefferson Ave, Short Hills, NJ 07078
Diamond in the rough.
8Bd/3.5Ba Single Family House
$1,390,000
Year Built 1900
Sq Footage 3248 sqft.
Bedrooms 8 Beds
Bathrooms 3.5 Baths
Lot Size 0.61 Acres

DESCRIPTION

A diamond in the rough Colonial on one of Short Hills' most desired streets.
Short Hills
see additional photos below
Unit Features

- Living room - Dining room - Master bath
- Family room - Basement - Range / Oven
- Refrigerator - Yard - Fireplace

ADDITIONAL PHOTOS

Contact info:
Shannon Aronson
Keller Williams Premier Properties
973-214-0691
shannon@shannonaronson.com
For sale by Agent/Broker

Posted: Nov 25, 2015, 9:53am EST

Millburn, Robert DeNiro and the Paper Mill Playhouse

As we approach the upcoming holiday season, many of us focus on the wonderful things for which we are grateful. As a resident of Millburn/Short Hills, NJ,I can tell you there are many wonderful things I love and cherish about living in this area. In addition to our top-tier school system, short NYC commutes, and wonderful restaurants, we also have world-class theater productions at the local Paper Mill Playhouse.

The Paper Mill Playhouse in Millburn is one of the country’s premier not-for-profit theaters. The quality of the productions at the Paper Mill Playhouse will delight even the most discerning theater buffs. The 2015-2016 schedule is full of some absolute gems including a Robert DeNiro directed production of “A Bronx Tale.”

Please check out this interesting article and the 2015-2016 schedule of shows.

http://www.nj.com/entertainment/index.ssf/2015/02/paper_mill_playhouse_announces_2015-16_season_–_w.html

I look forward to connecting and have a wonderful Holiday Season.

Warm regards,

Shannon

Today’s Low Mortgage Interest Rates Won’t Last Forever!

Today's low interest ratesDid you realize that a 1% increase in interest rates would mean an extra 10% increase in your monthly mortgage payment? Take advantage of today’s low mortgage interest rates before they increase!

If you or anyone you know would like to take advantage of today’s low mortgage interest rates to buy, invest, or trade up, please contact me. You can reach me by phone at 973-214-0691 or via email at Shannon@ShannonAronson.com. Click here to search homes for sale and take advantage of today’s low mortgage interest rates! Have real estate questions? Please visit my website for additional real estate information!

5 Highland Blvd. West Orange NJ

Calling all investors and builders! The Shannon Aronson Team is happy to share with you our newest listing . . . the perfect opportunity for you . . . 5 Highland Blvd. West Orange NJ. This property is being sold “as is”, and is offered for sale at $250,000.

5 Highland Blvd. West Orange NJ is a Fabulous Opportunity!

This single family home offers 3 bedrooms, 1 full, and 1 half bath. It is situated on a flat .26 acre lot, and is located in a wonderful Saint Cloud neighborhood, within walking distance to school!

I would love the opportunity to show you 5 Highland Blvd. West Orange NJ or any of the fabulous properties for sale in West Orange, NJ. Please contact me to arrange a showing. You can reach me by phone at 973-214-0691 or via email at Shannon@ShannonAronson.com. For additional real estate information, please remember to visit my website at www.NJRealEstateDirect.com.

20 Walnut Street Summit NJ New Investment Property

Front

Front view of 20 Walnut St Summit NJ

The Shannon Aronson Real Estate Team just listed a great new investment property located at 20 Walnut Street Summit NJ. This is a great Summit NJ rental property with excellent income. The property is close to downtown Summit, NYC trains, and is a side by side Duplex.

For more information on this investment property contact the Shannon Aronson Real Estate Team at 973-214-0691 or visit our website www.NJRealEstateDirect.com

31-33 Morris Ave Summit NJ New Investment Property for sale

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Front view of the investment property for sale located at 31-33 Morris Ave Summit NJ

The Shannon Aronson Real Estate Team just listed 31-33 Morris Ave Summit NJ. This is a great investment property to own in Summit. This large two family duplex was recently renovated, is move in condition, with large rooms, and a finished basement. This investment property is close to downtown Summit, NYC trains, and major highways. You don’t want to miss this opportunity for this investment property!

For more information on this investment property or others alike, contact the Shannon Aronson Real Estate Team at 973-214-0691 or visit our website www.NJRealEstateDirect.com

44-46 Kent Place Blvd Summit NJ Investment Property

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Front view of the investment property located at 44-46 Kent Place Blvd Summit NJ

The Shannon Aronson Real Estate Team just listed a new investment property located at 44-46 Kent Place Blvd Summit NJ. This great rental income Summit property is in prime location to downtown Summit, New York City trains, great schools, and major highways. This Summit investment property has two spacious units with a walk up attic.

If you are interested in more information regarding investment properties in Summit or the surrounding areas, contact the Shannon Aronson Real Estate Team at 973-214-0691 or visit our website www.NJRealEstateDirect.com