The New Jersey Housing and Mortgage Finance Agency (NJHMFA) announced on June 5, 2018 the launch of a state-wide, first-time home buyer down payment assistance program anticipated to help NJ residents meet their goal of home ownership.
Funded through the NJHMFA, qualified home buyers can now get $10,000 to make their home buying dreams a reality with the Down Payment Assistance Program (DPA).
PROGRAM DETAILS:
- Interest-free, five-year forgivable second loan with no monthly payment
- Funds can be used to assist the prospective home buyer with down payment and closing costs
- The assistance must be paired with an NJHMFA first mortgage loan
- The first mortgage loan is a competitive 30-year, fixed-rate government-insured loan, originated through a participating lender
- Certain restrictions such as maximum household income and purchase price limits apply.
For many first-time home buyers, the monthly mortgage payment on their first home may be comparable to their current rental payment, demonstrating that the income needed to purchase a home is not in many cases the barrier to home ownership.
The biggest challenge for these buyers is accumulating the funds needed to cover the down payment and closing costs.
The DPA program helps provide the resources needed to complete the purchase. The $10,000 helps to reduce the strain on the home buyers existing financial resources, translates into immediate equity and helps to ensure a stable footing on their entry into home ownership.
For more news and information on the Down Payment Assistance Program (DPA), read the entire press release here.
