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The New Jersey Housing and Mortgage Finance Agency provides a variety of programs to help prospective home buyers to purchase a home. For information about these programs, please select from the menu items on the right.
In addition, there are other items on the left, under Home Buyers, which may be of interest to you.
Tax Credit Loan Program - The "Prefund" Program
Now Available Up to $5000.00 Pre-Fund Stimulus Rebate!
The HMFA’s First-Time Home Buyers Tax Credit Loan Program (TCLP) or “Prefund” program provides a 0% loan to Agency First-Time and Urban Target Area Home Buyers to pay downpayment and/or closing costs. Home Buyers must meet all of the requirements of the Agency’s Home Buyer Program and be 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.
To participate in the Tax Credit Loan Program (TCLP) the Home Buyer must:
- be an approved Agency Home Buyer Program Applicant,
- have a household income that does not exceed the Agency’s TCLP maximum permitted income,
- buy a residence that is eligible under the Agency’s Home Buyer Program,
- apply for a TCLP loan on or after November 23, 2009,
- have signed a contract to purchase a home on or before April 30, 2010,
- must close on the home on or before June 30, 2010, and;
- must pledge to apply the refund received from the Federal First-Time Home Buyer Tax Credit toward the repayment of the TCLP loan.
Non-first-time home buyers who qualify for the tax credit will be eligible for the TCLP if purchasing a residence in an Urban Target Area. Military personnel who are eligible for the Home Buyer Tax Credit extension permitted by federal law may apply for TCLP during the term of the extension, which is currently through April 30, 2011. The TCLP loan will not exceed $5,000 ($4,000 in the case of married filing separately or $3,250 in the case of a non-first-time buyer purchasing in an Urban Target Area) and will be secured by a second mortgage. First Time Homebuyer Program
First Time Homebuyer Interest Rate - 5.750% with 0 points - 30 years!
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).
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