The state agency created by the legislature in New Jersey to offer first time home buyer programs is the New Jersey Housing and Mortgage Finance Agency. Here is a summary of the current first time home buyer programs that are offered:
First Time and Urban Target Area
A below-market, fixed interest rate 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. Loans are 30-year fixed rate. 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). Please see the latest income and purchase price limits. Further detail is available by calling 1-800-NJ-HOUSE.
A below-market, fixed interest rate 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. Loans are 30-year fixed rate. 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). Please see the latest income and purchase price limits. Further detail is available by calling 1-800-NJ-HOUSE.
Smart Start Visit Bob Rose www.bridgewaternjhomes.com
Accumulating the funds for down payment and closing costs is a common barrier to potential homeowners. The Smart Start Program helps families purchasing homes in Smart Growth areas by offering a second mortgage for down payment and/or closing costs. Borrowers earning less than 80% of HMFA's Home Buyer county income limits are eligible to receive 4% of the first mortgage amount. For more details, contact HMFA at 1-800-NJ-HOUSE.
Accumulating the funds for down payment and closing costs is a common barrier to potential homeowners. The Smart Start Program helps families purchasing homes in Smart Growth areas by offering a second mortgage for down payment and/or closing costs. Borrowers earning less than 80% of HMFA's Home Buyer county income limits are eligible to receive 4% of the first mortgage amount. For more details, contact HMFA at 1-800-NJ-HOUSE.
Police and Fire Mortgage
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 $ 359,650. Interest rate is 30 year fixed. Program rates are set semi-annually in February and August. Further detail is available by calling 1-800-NJ-HOUSE.
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 $ 359,650. Interest rate is 30 year fixed. Program rates are set semi-annually in February and August. Further detail is available by calling 1-800-NJ-HOUSE.
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. Further detail is available by calling 1-800-NJ-HOUSE.
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. Further detail is available by calling 1-800-NJ-HOUSE.
HOPE Program
HOPE is an employer guaranteed loan program that offers no down payment, 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. Further detail is available by calling 1-800-NJ-HOUSE.
HOPE is an employer guaranteed loan program that offers no down payment, 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. Further detail is available by calling 1-800-NJ-HOUSE.
100% Financing
Provides no down payment, no mortgage insurance, mortgage loans at pre-approved new or rehabilitated single-family housing developments and for certain newly constructed units. Down payment 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 HMFA's prevailing interest rate. The program is subject to funding and housing availability.
Provides no down payment, no mortgage insurance, mortgage loans at pre-approved new or rehabilitated single-family housing developments and for certain newly constructed units. Down payment 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 HMFA's prevailing interest rate. The program is subject to funding and housing availability.
For complete details on these first time home buyer programs available to New Jersey residents, visit the New Jersey Housing and Mortgage Finance Agency website.
It is highly recommend that you also visit the First Time Home Buyer Grants page for free assistance with the down payment.
It is highly recommend that you also visit the First Time Home Buyer Grants page for free assistance with the down payment.
Best Lender For First Time Home Buyer Loans
Unfortunately, some lenders do not like to work with first time home buyers (due to not having a track record), and prefer instead to only provide mortgages to people who have previously owned a home. If you do not need help with the down payment and are not in need of any state program, search for a lender that has great rates, an easy online application, and welcome first time home buyers. Additionally find one that has not been as severely hurt by the subprime mortgage crisis and are still approving the majority of applications.
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