Rising mortgage rates have recently affected housing affordability and buyer’s purchasing power. Whether you’re a first-time or repeat homebuyer, programs are available to assist you on your path to homeownership in New Jersey. 

Secure a Lower Interest Rate with the YOUR Home Program 

The YOUR Home program offers qualifying borrowers a variety of benefits, including a below market rate. Eligibility is based on census tract of the purchase property and county median income limits. 

YOUR Home offers the following benefits to borrowers: 

• Discounted rate 
• No first-time buyer requirement 
• As little as 5% down
• Expanded eligibility for no PMI payments 
• 100% gift funds for down payment allowed; borrower must bring 1% of sales price for single-unit properties and 3% for two-unit properties 

YOUR Home program eligibility depends on income and location. Eligible areas include Bergen, Essex, Hudson, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, and Union Counties in New Jersey, as well as Orange County in New York. 

NJHMFA Offers Down Payment Assistance to Qualifying Borrowers

Through the New Jersey Housing & Mortgage Finance Agency (NJHMFA), borrowers in New Jersey can secure competitive terms on a 30-year, fixed rate mortgage, which is able to be combined with the down payment assistance offered by the agency. 

Borrowers must meet certain eligibility requirements to qualify for down payment assistance with NJHMFA: 

• The home will be a primary residence and is located in New Jersey
• Meet NJHMFA income and purchase price limits*
• Must be a first-time homebuyer** or haven’t owned a home in the past three years
• Meet credit and debt-to-income ratio requirements

* NJHMFA sets income and purchase price limits based on the number of individuals in a household and the location of the home. Price limits are higher for homes in certain urban communities that the agency has designated as “target areas”.

** If the home is in a “target area”, borrowers may be eligible for the program without being a first-time homebuyer, but cannot be the current owner of another primary residence. 

Down Payment Assistance Increased to $15,000 in Designated Counties 

NJHMFA recently increased the Smart Start Down Payment Assistance Program from $10,000 to $15,000 for the following counties in New Jersey: Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, and Union. 

All other counties will remain at $10,000 for the down payment assistance program. 

The increase went into effect on November 1, 2022 and only applies to new loan reservations in the listed counties. 

To participate in this program, down payment assistance must be paired with an NJHMFA first mortgage loan, a competitive 30-year, fixed-rate, government-insured loan (FHA/VA/USDA) or a conventional mortgage originated through an NJHMFA participating lender. Restrictions such as maximum household income and purchase price limits apply. 

Learn if You Qualify for YOUR Home or Down Payment Assistance Today

Finding the right mortgage depends on receiving the right advice from a seasoned mortgage professional. Working with an experienced and trusted loan officer will help determine your eligibility for either program, as well as help you to feel more confident and empowered on your path to homeownership. Give us a call or visit us online to find the best program for your unique financial circumstances today.