Sovereign Bank 30 year Fixed Mortgage currently 4.5 % YMMV NJ with possibilities in other states, not sure

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Currently Sovereign Bank is offering 30year fixed mortgages in NJ, (not sure about other states) at a rate of 4.5% for 30 years. I'm closing my mortgage next week at a rate of 4.375% on a 30yr Fixed with no points and no PMI. You are also only obligated to put down 5%. If I was able to find a property 2 weeks sooner, I could have been locked in at 3.9, but I canít complain!

There is a qualification process, here is what I had to do / have in order to get the mortgage

1. You must have a clean credit report with absolutely no lates reported with in the last 12 months

2. You must meet specific income levels. There is a Low / Middle / High rate based on your income. I fell into the middle category for the county I'm moving into. I believe the income max was 65k. If you made less then that for the last 2 years you fall into the -1% off their current mortgage rate of 5.5%.

3. After closing you can have no more then 50k left in your bank account

4. All mortgage payments have to be directly withdrawn from your Sovereign Bank account.

5. You must go to a 2 hour pre-approval process via NJ Citizens Action

I'll be honest; it was very difficult to finally get a commitment from them at that rate. They require proof upon proof of verifications / credit scores. You can not lock your interest rate until you find and have a property and have a contract on the home.

Overall, I'm amazed that this actually happened and went through.

You can fill out an application online and when a rep calls you they will ask you some questions to see if you fall into the program guidelines. If they don't offer it to you, ask them about the program.

This is for anyone, you don't have to be a first time buyer, you just need to be upfront and honest with them because they verify everything.

I think I posted everything, if you have any questions, let me know.


Sovereign Banks homepage is

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Your title should mention this offer is for those with income of $65K or less.

I almost got my mortgage through this bank. I fell into all of their qualifications.. BUT, I found out that the mortgage is not a true FIXED-rate product. Read the fine print, you actually have an adjustable rate mortgage. Your rate will rise to current market values in 3 years.

2 things.

1 my rate is fixed for 30 years. There is no fine print. It's fixed

2. The limit is not 65k that is the program I fell into, there are a bunch of other programs based on the county you are going to move to and the income you make.

For instance, if you are going to move to middlesex county, i think the middle income bracket is 72k and the high is 95k

there are MANY below market rate homeownership programs

The program OP listed is likely very specific to you, but there ARE many other similar programs with phenomenal rates, IF one falls into the criteria (usually first time homebuyer, low/middle income, takes homebuyer education classes, etc)

lists many reduced rate programs in CA.

These are very time consuming and difficult to get, when compared to a "normal" mortgage. You must specifically apply and qualify for these programs and use the related lender...just walking into /calling that lender will NOT get you the same rate.

Any similiar programs available for PA/Pittsburgh?

Lets turn this thread (or create anothe thread) for these types of mortgages. I'll post a link for Maryland a little later today.


holla said: [Q]Lets turn this thread (or create anothe thread) for these types of mortgages. I'll post a link for Maryland a little later today.


please add the Maryland links. Hopefully we can create a comprehensive state by state list here at FW.

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