Provides no downpayment, no mortgage insurance, mortgage loans at pre-approved new or rehabilitated single-family housing developments and for certain newly constructed units. Downpayment 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. Please refer to the One Hundred Percent Project List for available projects in your area.
One Hundred Percent financing is available only when purchasing homes pre-approved by the Agency and listed on the One Hundred Percent Project List. Not-for-profit and for-profit developers can apply for project approval. Please see the latest income and purchase price limits. Further detail is available on our Fact Sheet or call 1-800-NJ-HOUSE.
Fact Sheet
- INTEREST RATE: Rates are set periodically. Call 1-800-NJ HOUSE (1-800-654-6873) for current rates.
- MORTGAGE LOAN MATURITY: 30 year maximum term.
- DOWNPAYMENT REQUIREMENT: Borrower will be able to finance the full sales price provided the Loan-to-Value (LTV) does not exceed:
- 100% of the appraised market value in targeted areas.
- 70% of the appraised market value in statewide areas.
Loan-to-value percentage is the unpaid balance of the mortgage principal to the appraised value or sale price (whichever is lower) of the property.
- CLOSING COSTS: Borrower may finance closing costs provided the LTV does not exceed the specified appraised market value. Borrower must have funds to cover escrows required at closing.
- ELIGIBLE PROPERTIES: Subsidized housing units in Agency approved projects (list of projects attached). Units can be existing or newly constructed properties. All properties must be owner-occupied within 60 days of closing.
- ELIGIBLE BORROWERS: Individuals only. Corporations are not permitted to act as borrowers. Borrowers purchasing properties located in the statewide areas must be first time home buyers. Borrowers purchasing properties located in the targeted areas do not have to be first time home buyers, however, at the time of loan closing no other residential properties may be owned. Targeted areas are located within the 54 municipalities listed on the income/price limits sheet.
- INCOME GUIDELINES: Borrowers must meet the income guidelines as listed on the attached income limit/purchase price sheet. Your income may not exceed the income limit set for the area in which you are purchasing. Income is determined by family size as well as area of purchase.
- CHARGES TO THE BORROWER: Borrowers will be charged an application fee when the application is taken. This fee will cover the cost of the credit report(s), appraisal, flood certification or other third-party expenses and administrative costs incurred during processing.
- PURCHASE PRICE LIMITS: Purchase price limits exist for both statewide and targeted areas. (Please see attached income limit/purchase price sheet.)
- HOME BUYER EDUCATION: Borrowers must participate in home ownership and personal finance counseling/education sessions sponsored by the Agency. Borrowers must be issued a Completion Certificate after the counseling is completed.
- HMFA Approved Lender List
