Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in New Jersey
NJHMFA Down Payment Assistance Program
The New Jersey Housing and Mortgage Finance Agency (NJHMFA), has a Down Payment Assistance Program that helps first-time homebuyers make the mortgage process more affordable. This program aims to help eligible applicants who has interests and able to afford the initial costs of a mortgage transaction.
The Down Payment Assistance Program is quite common in many states, but it is not one of the First-Time Homebuyer Assistance Programs in New Hampshire.
Available Assistance
Qualified borrowers may receive assistance funds up to $10,000 under the NJHMFA Down Payment Assistance Program. You can use these funds to pay closing costs or down payments. They come in the form of a second mortgage at zero interest and no monthly payments. The loan is forgiven after five years of residence in the home.
Eligibility requirements
All applicants must meet the requirements to be eligible for NJHMFA’s Down Payment Assistance Program. All applicants must be first-time buyers (or someone who hasn’t owned a house in the past three years), and have a NJHMFA primary mortgage originated by a participating lender. FICO scores of at least 620 are a requirement. Borrowers must not have sufficient liquid assets to pay a mortgage at less than 80% LTV. Income limits are dependent on the household size and location, as well as the funding source for the primary mortgage. However, it cannot exceed 140% of the area’s median income.
Property Guidelines
The NJHMFA Down Payment Assistance Program requires that any home purchased must be in New Jersey. It must also serve as the borrower’s primary residence. A property must be a single-family, condo, townhome, manufactured or mobile home that is permanently attached.
Borrower’s real property; two- to four-family dwellings are not eligible if you’re only using one unit as the primary residence. All properties must meet the NJHMFA’s first mortgage loan guidelines and fall within the state’s purchase price limits.
Are you interested in the First-Time Homebuyer Assistance Programs in New Mexico?
