New Jersey Housing First-Time Home Buyer Tax Credit Loan Program

New Jersey, like so many other states have initiated a temporary loan program for first time home buyers called the First-Time Home Buyers Tax Credit Loan Program - TCLP. The New Jersey Housing & Mortgage Finance Agency call this program the "Prefund" tax credit program.

The NJ Tax Credit Loan Program provides first time home buyers in New Jersey with a short term loan to be used for closing costs or the downpayment in advance of the home buyer receiving the Federal Housing Tax Credit.

New Jersey Home Buyer Tax Credit Loan Program Highlights

• To take advantage of this great home buying assistance program, New Jersey first time home buyers should know the particulars to make sure they can qualify.


• The TCLP can only be used in conjunction with buying a primary residence. To qualify for the TCLP you must sign a occupancy affidavit that stipulates that you will occupy the home for as long as their is an outstanding balance on the TCLP. If you move from your residence, but keep possession of your home, expect to have to pay back your tax credit short term loan.


• First time home buyers looking to qualify for the TCLP must also qualify for the Home Buyer Program as stipulated by the New Jersey Housing & Mortgage Finance Agency. The TCLP must be used in conjunction with this program. See specific information on New Jersey Home Buyer Programs.


• The TCLP only applies for homes that are bought between April 8, 2009 and December 1, 2009 which matches exactly to the federal tax credit program timeframe.


• The maximum loan amount is limited to $5000 or 15% of the purchase price of the home whichever is less, where as the Federal tax credit is $8000. Additional loan amount guidelines apply for married couples as well as needing the TCLP to exceed the $5000 limit. More information these guidelines can be found by contacting New Jersey Housing direct.


• The program is only available to first time home buyers buying a home in New Jersey.


• The TCLP has a 0% interest rate through July 2010. If the TCLP is not paid in full at that time, the interest rate of the loan adjusts to match the interest rate of the first mortgage and is payable over the remaining life of the first mortgage.


• Because the TCLP is relative to the Federal housing tax credit program there are income provisions per Federal guidelines and because the TCLP is used in conjunction with New Jersey housing Home Buyer Programs other income parameters apply. Make sure you can qualify for both if you are expecting to use this program in advance of getting your $8000 Tax Credit.

Additional information about the New Jersey Home Buyer Tax Credit Loan Program can be found on the New Jersey Housing & Mortgage Finance Agency website.