Q1: What is the Police & Firemen’s Retirement System Mortgage Program by Advisors Mortgage?
A1: The Police & Firemen’s Retirement System Mortgage Program is designed to assist active police officers and firefighters who are facing financial challenges. It offers a unique mortgage solution tailored to the needs of those enrolled in the Police and Firemen’s Retirement System.
Q2: Who is eligible for this program?
A2: Currently employed police officers and firefighters who are members of the Police and Firemen’s Retirement System and have at least 1 year of creditable service can qualify for this mortgage program. It’s specifically for home purchases, and retired members unfortunately do not qualify.
Q3: What are the key features of this program?
A3: The program provides a 6-month rate lock based on the Treasury bill plus 1%, with rate updates on February 15th and August 15th each year. This means your rate won’t change for the term of the mortgage after closing. Both 15- and 30-year loan terms have the same rate.
Q4: Are there property requirements?
A4: Yes, eligible properties must be one- or two-family residences or condominiums located in New Jersey. You need to move into the residence within 120 days of closing and live there throughout the loan’s life.
Q5: What’s the maximum mortgage amount I can borrow?
A5: The maximum mortgage amount, determined by Fannie Mae, is currently $766,550. This limit enables you to buy a high-priced home, as long as your loan amount is $766,550 or less.
Q6: What fees are associated with this mortgage program?
A6: There is an origination fee set at $1,825, regulated by the NJ Housing and Mortgage Finance Agency. Additionally, there’s a monthly servicing fee of $30.00 for the initial 36 months, which decreases to $18.00 per month afterward.
Q7: What’s the current interest rate for the Police & Fire Mortgage?
A7: The current interest rate stands at 5.04%, with an APR of 5.19%*. It’s important to note that not all applicants will qualify for this rate, and terms and conditions apply.
Q8: Are there any tax implications I should be aware of?
A8: According to the NJ Housing & Finance Agency, the mortgages issued under this program are considered not to be taxable distributions. However, it’s wise to consult your tax advisor before proceeding.
Q9: Are there any additional requirements during the mortgage process?
A9: Yes, a few additional guidelines include a termite inspection for the home, a property survey, and, if the lot is over 1 acre, a letter from the town stating the land can’t be subdivided without a variance. Also, a printout of your member benefit statement from MBOS (State of NJ Pension Benefits) is needed.
Q10: Why should I consider the Police & Fire Mortgage Program?
A10: This program offers a long-term rate lock that can be advantageous in a changing market. It often results in lower monthly payments compared to other programs. Our mortgage specialists are here to guide you and answer any questions you have throughout the process. Your financial well-being is our priority.
