MSN Real Estate has named New Jersey as one of the 10 Best States for First Time Homebuyer help. Currently there are 5 programs available to help you purchase your new home.
- Live where you work: LWYW provides homebuyers who live and work in an NJ Smart Growth area a low-interest 30-year fixed-rate first mortgage from the New Jersey Housing and Mortgage Finance Agency combined with Smart Start downpayment assistance and/or closing costs in an amount up to 4% of the first mortgage loan.Eligible properties include one-family units, including condominiums, (new and existing), and existing 2- to 4-family unit properties that are more than 5 years old. This program is for individuals only and at least one of the borrowers must verify that their place of employment is located in the participating municipality. Borrowers buying properties located in “Statewide Areas” must be first-time homebuyers. Borrowers buying properties located in Urban Target Areas such as Bridgeton, Haddon Township, Hamilton Township (Atlantic County), Robbinsville and Voorhees do not have to be first-time homebuyers. LWYW program.
- First-Time Homebuyer Program: NJHMFA’s First-Time Homebuyer Interest Rate is 5.25% with 0 points on a 30 year mortgage. These below market rates are offered to First-Time Homebuyers and Urban Target Area buyers. Individuals only, no corporations allowed. They require a downpayment of as little as 3.5% and the money 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). FTHB Fact Sheet
- Smart Start Program: The Smart Start Program is available to participants in the First-Time Homebuyer program who are buying their 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. Smart Start Fact Sheet
- Purchase and Rehab Mortgage Program: Qualified First-Time Homebuyers 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. Purchase/Rehab and Refi/Rehab Mortgage Program Fact Sheet
- Home Plus Program: This program offers fixed interest rate home mortgages to qualified First-Time and Urban Target Area homebuyers with immediate home improvement or repair needs. Homeowners can finance up to $15,000 toward home repairs and improvements as part of the first mortgage.Improvements include replacing a roof, painting, installing improved heating or air conditioning systems, renovating a kitchen or bath, renovating plumbing or electrical systems or enlarging rooms. Energy conservation and solar energy improvements are also eligible as well as Handicap accessibility improvements. Home Plus Program Fact Sheet
If you’re interested in buying a home in New Jersey and would like to know more about these programs, give me Tom Healy a call at 1.856.906.7313.
