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Top 10 NJ Home Buyer Programs
1. First Time Home Buyer
Term: 30-yr fixed
Rate: 5.750% with 0 pts
A below-market, fixed interest rate loan is offered to first-time home buyers and urban area buyers. Down payments of as little as three percent are required and must come from the borrower's own assets. Certain closing costs can be gifted by family members, non-profit organizations or government agencies. Debt to income ratios are as high as 33 percent (housing debt, i.e., mortgage, taxes, insurance) and up to 38 percent (total monthly debt load).
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2. Tax Credit - Prefund
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.
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3. Smart Start
Accumulating the funds for downpayment and closing costs is a common barrier to potential homeowners. The Smart Start Program is available to participants in the first mortgage homebuyer’s program who are purchasing homes in Smart Growth areas. The program helps these families by offering a second mortgage for downpayment and/or closing costs up to 4% of the first mortgage.
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4. Live Where You Work
The LWYW program is a home mortgage incentive program that provides low-interest mortgage loans to homebuyers purchasing homes in towns where they are employed. The goal of LWYW is to build stronger communities by promoting homeownership and encouraging people to live closer to their jobs. This, in turn, will reduce the need for cars and increase the use of alternative transportation such as walking, biking and public transit.
If you would like to buy a house in the town where you currently work, then LWYW might be right for you. Employees benefit from attractive mortgage rates, more flexible loan application review and underwriting criteria, and reduced commuting times to work. Municipalities benefit from having a committed workforce living nearby, and the activity and economic vibrancy that comes with people living near where they work.
Eligible Properties: Properties must be located in a participating Live Where You Work municipality. Eligible properties include one-family units, including condominiums, (new and existing), and existing 2-4 family unit properties that are more than 5 years old. Some Live Where You Work municipalities include *Urban Target Areas (UTA). In Urban Target Areas eligible properties can also include new 2-unit residential dwellings. Properties must be located in State designated Smart Growth locations.
Click here to see if your municipality is eligible.
Enter email address and municipality.
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5. NJ Police & Firemen's Retirement System
Active members of the New Jersey Police and Firemen's Retirement System (PFRS) with one year of creditable service are eligible for this program. Members may buy a home (first-time or trade-up) or refinance an existing home. Maximum mortgage amount is $417,000. Interest rate is 30 year fixed. Program rates are set semi-annually in February and August.
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6. 100% Financing
Provides no downpayment, no mortgage insurance, mortgage loans in pre-approved new or rehabilitated single-family housing developments and for certain newly constructed units. Downpayment and closing cost assistance may be available under this program. First-time and urban area buyers are eligible for 30-year fixed rate financing at the prevailing interest rate. The program is subject to funding and housing availability. Please refer to the One Hundred Percent Project List for available projects in your area.
One Hundred Percent financing is available only when purchasing homes listed on the One Hundred Percent Project List. Not-for-profit and for-profit developers can apply for project approval. Please see the latest income and purchase price limits.
Click here for Email copy of 100% Project List
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7. Purchase/Refi Rehab
Qualified first-time home buyers and urban target area buyers can receive below-market interest rate financing for the purchase and rehabilitation of a home, or the rehabilitation of a presently owned home. Seventy-five percent of the home's existing external walls and interior structural framework must remain in place as part of the rehabilitation. Must meet FHA 203(K) requirements. Please see the latest income and purchase price limits.
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8. Home Plus
A fixed interest rate home mortgage to qualified first-time and urban area home buyers with immediate home improvement needs. Homeowners are allowed to finance up to $15,000 toward home repairs and improvements as part of the first mortgage. Improvements allowed include replacing a roof, painting, installing improved heating or air conditioning systems, renovating a kitchen or bath, renovating plumbing or electrical systems and enlarging rooms. Energy conservation and solar energy improvements are also eligible. Handicap accessibility improvements are also eligible repairs. Please see the latest income and purchase price limits.
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9. At Home Downtown
The At Home Downtown program aims to revive the mixed-use vitality of New Jersey's downtowns and neighborhood commercial districts. By taking advantage of reduced-rate loans, business owners, non-profit organizations and investors can construct or acquire, refinance, and renovate buildings that offer ground floor storefront commercial opportunities with up to four units of rental housing overhead. First mortgage loans are at fixed, below market interest rates. Second mortgages will also be provided, when necessary.
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10. Home Ownership for Performing Employees
HOPE is an employer guaranteed loan program that offers no downpayment, below-market, fixed rate mortgages to eligible employees without private mortgage insurance. Employers must be approved by the HMFA. The program adheres to the same mortgage program requirements as the Home Buyer Program. Any size company can participate. The employer can establish qualifications in addition to HMFA program restrictions. Please see the latest income and purchase price limits.
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