The State of New Jersey Housing and Mortgage Finance Agency (HMFA) has mortgage programs for home buyers who are looking to purchase a home in New Jersey. HMFA also has down payment and closing cost assistance programs to help those who want to buy a home, and who qualify, but need a little financial assistance to become a home owner.
Does New Jersey Have First Time Home Buyer Programs?
You can buy a home in New Jersey if you are a first time home buyer. A home buyer must be able to qualify for an FHA, VA, Rural Housing Service, and Fannie Mae or Freddie Mac Conventional Mortgage with a HMFA approved participating mortgage lender to use the HMFA First Time Home Buyer Program. Interest rates for this program are below market and are fixed for up to 40 years. The most common mortgage length is 30 years.
First Time Home Buyer And Urban Target Area Mortgage Program Highlights
- Home buyer must pay 1% of the loan amount up front to the lender at the time of their loan application. This money is applied to the home buyer’s closing costs or down payment requirements at closing.
- Eligible properties include: single family units, new and existing condos, 2 to 4 unit residential buildings which are older than 5 years in all non targeted areas. In targeted areas, allow for new units build less than 5 years ago and any new or existing 2 unit dwelling.
- You do not have to be a first time home buyer if you are purchasing a home in a Targeted area. However, at the time of closing the home buyer cannot own any other residential properties.
- Depending on your status as a home buyer – first time buyer or buying in a targeted area there may be home buyer education required. Make sure to check with your participating lender for details on home buyer education programs.
- Income and Purchase Price Limits do apply depending on the location of the property and whether the location is a Targeted Area or not.
- Home buyers who qualify may use the Smart Start Program to get help with down payment assistance and closing costs.
- Home buyer participants are subject to potential Federal Recapture Tax. Learn more about Recapture Tax
- Home buyers should check into their eligibility for a Federal Tax Credit under this program
Smart Start Program –Get Money For Down Payment And Closing Costs In New Jersey
If you are looking for help with your down payment and closing costs and you are buying a home in New Jersey to live in as your primary residence you may want to check into the Smart Start Program by HMFA. To utilize the Smart Start Program you will need to use one of HMFA’s first mortgage home buyer programs and be purchasing a home in a Smart Growth area.
The Smart Start Program is a loan program from HMFA to the home buyer given to the home buyer through a participating lender. A home buyer can get from 2%, 3%, or 4% of the first mortgage to be applied to their down payment and closing cost requirements. The Smart Start loan is at 0%, and if the home buyer remains in their home for at least 5 years the loan is satisfied. But if the home buyer transfers their ownership in their home to someone else, gets a cash-out refinance, or moves from their home the Smart Start loan will have to be repaid in some fashion.
Home buyers using this program for down payment and closing cost assistance will need to meet certain income guidelines and property purchase price restrictions depending on which Smart Growth area they decide to buy a home in.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
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