New Jersey Housing and Mortgage Finance Agency Down Payment Aid
The New Jersey Housing and Mortgage Finance Agency (NJHMFA) takes the leap towards affordable homeownership with its Down Payment Assistance Program, a statewide initiative tailored to first-time homebuyers. Designed to ease the financial burden of upfront mortgage costs, this program offers a helping hand to those ready to embark on their homeownership journey.
Accessible Aid: With NJHMFA’s Down Payment Assistance Program, eligible borrowers can access financial support of up to $10,000. These funds can be strategically allocated toward closing costs or the down payment, presenting a zero-interest, second mortgage solution with no monthly payments. What makes it even more appealing is that this loan is forgivable over five years, meaning that if the borrower maintains a residence in the home for this period, the loan is entirely forgiven, relieving them of any repayment obligation.
Eligibility Empowerment: To unlock the benefits of NJHMFA’s Down Payment Assistance Program, applicants must meet specific criteria. Firstly, they should qualify as first-time homebuyers, which is defined as individuals who haven’t owned a home within the past three years. Financing through an NJHMFA primary mortgage from a participating lender is mandatory. Additionally, applicants must hold a minimum FICO score of 620 and have insufficient liquid assets to secure a mortgage at an 80% Loan-to-Value ratio (LTV) or less. Income limits vary based on household size, home location, and the funding source of the primary mortgage but should not exceed 140% of the area median income.
Property Prowess: Prospective homes acquired through the NJHMFA Down Payment Assistance Program must be situated within the borders of New Jersey and serve as the primary residence for the borrower. The program accommodates various property types, including single-family homes, condominiums, townhomes, manufactured homes, and mobile homes permanently affixed to owned real property. In special cases, two-to-four-family dwellings are eligible, provided that one unit remains the borrower’s primary residence. All properties must conform to statewide purchase price limits, contingent on family size and location, as well as other guidelines established by NJHMFA’s first mortgage loan program.
NJHMFA’s Down Payment Assistance Program is a beacon of hope for those eager to embrace homeownership in New Jersey, offering not just financial aid, but the promise of a brighter future within the comforts of their very own home.