NJHMFA now allows Renegotiation and Extension (R&E) for eligible NJHMFA products. Below outlines the R&E Request Process:
The R&E Rules of Engagement:
- R&E must be requested by the borrower, and may not be solicited by the Lender.
- R&E may only be requested no more than 40 days and no less than five days prior to closing.
The R&E Request Form:
Renegotiation and Extension Terms:
- R&E will be applied at the current market interest rate for the applicable product, plus 0.125%. For example, if the loan locked at 6% and market is 5.5%, the R&E will bring the rate to 5.625%.
- R&E application will result in a decrease of 0.25 to the Lender’s loan price. For example, if the loan price had been 102.375, the new loan price will be 102.125.
- R&E application will result in an extension of the lock expiration date by three business days to allow time for proper re-disclosures to be completed.
- Any applied adjustments to the rate sheet price remain applicable to the loan, including extensions applied prior to the R&E or after the R&E.
- Eligible products are limited to these specific programs: Homeward Bound and First Time Home Buyer programs. All other programs are ineligible for the R&E process.