N.J. Admin. Code § 3:10-8.1

Current through Register Vol. 57, No. 1, January 6, 2025

Section 3:10-8.1 - Appraisal ratio relaxed for certain loans

(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 N.J.S.A. 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.

N.J. Admin. Code § 3:10-8.1