New Jersey Administrative Code
Title 3 - BANKING
Chapter 10 - MORTGAGES
Subchapter 8 - APPRAISAL VALUE RELAXED FOR CERTAIN LOANS
Section 3:10-8.1 - Appraisal ratio relaxed for certain loans
Universal Citation: NJ Admin Code 3:10-8.1
Current through Register Vol. 56, No. 6, March 18, 2024
(a) A bank or savings bank may originate or acquire mortgage loans up to 100 percent of the appraised value of the property, provided that:
1. The applicant has insufficient resources to make a downpayment of 10 percent or more;
2. The loan does not exceed the lending limits for FHA loans by county (published at http://www.fha.com);
3. The aggregate amount of loans originated or acquired pursuant to this section shall not exceed five percent of the capital funds of the bank or savings bank as defined in 17:9A-60 without prior approval of the Commissioner; and
4. One or more of the following conditions are met:
i. The mortgage loan is made to an individual or family of low or moderate income, as defined by 12 U.S.C. §
2901, who will occupy the property as a primary residence;
ii. The mortgage loan is made to a first-time homebuyer who will occupy the property as a primary residence;
iii. The mortgage loan is made to an individual or family who currently resides, or who will reside, in a low or moderate income census tract as defined by 12 U.S.C. §
2901, and who will occupy the property to be mortgaged as a primary residence; or
iv. The mortgage loan is made to an individual or family who is seeking a loan in connection with any State or Federal agency affordable housing construction, purchase or refinancing program.
Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
