FHA Loans in ParamusBuy with Just 3.5% Down Payment
Make homeownership possible in Bergen County with an FHA loan. Lower down payment requirements and flexible credit guidelines help first-time buyers enter the Paramus market.
Why Choose FHA for Your Paramus Home?
Low Down Payment
Buy a Paramus home with just 3.5% down. On a $600,000 condo near Garden State Plaza, that's only $21,000 down versus $120,000 for conventional 20% down.
Down Payment Comparison:
FHA: $21,000 (3.5%)
Conventional: $120,000 (20%)
Flexible Credit
FHA accepts credit scores as low as 580 with 3.5% down. Perfect for buyers recovering from financial setbacks or building credit history.
Credit Requirements:
580+ = 3.5% down
500-579 = 10% down
Gift Funds Allowed
Your entire down payment can come from family gifts. Many Paramus buyers use gift funds from parents or relatives to purchase their first home.
Acceptable Sources:
Family, employer, charity, grants
High Bergen Limits
Bergen County's FHA limit of $828,000 covers most Paramus homes. This high-cost area adjustment makes FHA viable for Bergen County's expensive market.
Coverage:
85% of Paramus homes under limit
FHA vs. Conventional Loans in Paramus
| Feature | FHA Loan | Conventional |
|---|---|---|
| Minimum Down Payment | 3.5% | 5-20% |
| Minimum Credit Score | 580 | 620+ |
| Mortgage Insurance | Life of Loan | Removable at 20% |
| Bergen County Limit | $828,000 | $766,550 |
| DTI Flexibility | Up to 57% | Up to 45% |
| Gift Funds | 100% Allowed | Restricted |
| Best For | First-Time Buyers | 20%+ Down |
When FHA Makes Sense for Paramus Buyers:
- You have less than 10% saved for down payment
- Your credit score is between 580-680
- You're buying a primary residence (not investment)
- The home price is under $828,000
- You need higher DTI flexibility (over 45%)
FHA Property Requirements in Paramus
FHA loans require properties to meet specific safety and habitability standards. Most well-maintained Paramus homes easily qualify, but understanding requirements helps avoid surprises during the appraisal.
Property Must Have:
- Safe drinking water and adequate sewage
- Functioning heating system
- Roof that prevents moisture entry
- Safe electrical system without exposed wiring
- Lead-based paint remediation (pre-1978)
Eligible Properties:
- Single-family homes in Paramus
- FHA-approved condos (many in Paramus)
- Townhomes and row houses
- 2-4 unit properties (owner-occupied)
- Manufactured homes (1976+)
Note: Some Paramus condo complexes require FHA approval. We maintain a current list of approved complexes near Garden State Plaza and Bergen Town Center. Contact us to verify your desired property qualifies.
Understanding FHA Mortgage Insurance
FHA loans require mortgage insurance premium (MIP) to protect the lender. While this adds to your monthly payment, it enables the low down payment that makes homeownership possible for many Paramus buyers.
Upfront MIP
- • 1.75% of loan amount
- • Can be rolled into loan
- • Paid at closing
Example:
$600K loan = $10,500 upfront MIP
Annual MIP
- • 0.55% annually (3.5% down)
- • Paid monthly with mortgage
- • Life of loan for <10% down
Example:
$600K loan = $275/month MIP
Total FHA Payment Example (Paramus):
Purchase Price: $650,000
Down Payment (3.5%): $22,750
Loan Amount: $627,250
Principal & Interest: $4,176
Monthly MIP: $287
Total Payment: $4,463
Your Path to FHA Approval in Paramus
Pre-Approval (Same Day)
Submit basic financial information for FHA pre-approval. We'll verify your eligibility and provide a pre-approval letter for Paramus home shopping.
Find Your Home (1-30 Days)
Shop for FHA-eligible properties in Paramus. We'll verify condo approval status and help identify properties that meet FHA standards.
FHA Appraisal (Day 5-10)
FHA-certified appraiser evaluates the property for value and condition. Any required repairs must be completed before closing.
Underwriting (Day 10-20)
FHA underwriter reviews your file for final approval. Additional documentation may be requested. Clear conditions promptly for faster closing.
Closing (Day 30)
Sign final documents at a local Paramus title company. Receive keys to your new home! FHA loans typically close in 30 days from contract.
Start Your FHA Journey in Paramus Today
Get pre-approved for your FHA loan and start shopping with confidence
NMLS #1577754 | FHA Approved Lender | Equal Housing Opportunity