Rockaway, NJ Mortgage Guide
Most Rockaway buyers are choosing between three loan types and don't realize how big the monthly difference can be. Here's the side-by-side.
The three loans most Rockaway buyers compare
Rockaway sits in a sweet spot price-wise — most homes qualify cleanly for any of the major loan programs. The right one depends on your down payment and credit, not the property.
Conventional 30-year fixed
- Down payment: 3% (first-time) to 20%
- Credit: 620+ generally, best pricing at 740+
- PMI: Yes if under 20% down, but drops off automatically at 78% LTV
- Best for: Buyers with stronger credit who want flexibility long-term
FHA
- Down payment: 3.5%
- Credit: 580+ (some lenders down to 500 with 10% down)
- MIP: Yes, and it stays for the life of the loan unless you put 10%+ down
- Best for: Lower credit, lower down payment, plan to refi when credit improves
VA
- Down payment: 0%
- Credit: 620+ typically
- PMI: None (one-time funding fee instead)
- Best for: Eligible veterans, active duty, surviving spouses — almost always the best deal if you qualify
Rockaway-specific tax note
One thing buyers miss: Rockaway Township and Rockaway Borough are two separate municipalities with different tax rates. A house on one side of the street can have a $1,500/year tax difference from one across the street. Always pull the actual tax record before assuming.
Real monthly payment scenarios
$475K Rockaway home, today's rates:
- Conventional, 5% down: ~$3,650/mo all-in (P&I + tax + ins + PMI)
- FHA, 3.5% down: ~$3,720/mo all-in (P&I + tax + ins + MIP)
- VA, 0% down: ~$3,580/mo all-in (P&I + tax + ins, no MI)