NJ Downpayment Assistance Programs

The Tax Credit Loan Program provides a loan to pay downpayment and/or closing costs to first-time home buyers who meet all of the requirements of the Home Buyer Program and who are eligible for the credit as permitted by the federal law establishing the credit and the guidance provided by the IRS in the General Instructions that accompany IRS Form 5405 and who apply for a TCLP loan on or after April 8, 2009 and close on the home purchase between April 8, 2009 and before December 1, 2009.  The TCLP loan will not exceed $5,000 ($4,000 in the case of married filing separately) and will be secured by a second mortgage.  The borrower will pledge to apply the refunds received from the first-time home buyer tax credit toward the repayment of the TCLP loan.

General Eligibility Requirements:  Individuals only. Corporations are not permitted to act as borrowers.  Borrowers purchasing properties located in the Statewide Areas or in *Urban Target Areas must be first-time home buyers to be eligible for the TCLP loan. At the time of loan closing, no other residential properties may be owned.