Interested home buyers in Woodbridge can now cut their commuting costs and get help buying a home through a new program that encourages people who work in Woodbridge to live in the township.

"Live Where You Work Home Buyer" program, a partnership between town officials and the state Department of Community Affairs, is geared toward single people and young families who are looking to put down roots in Woodbridge as workers and residents.

"We are the perfect town for this happen," Mayor John McCormac said. "We're not afraid of families with children. We want people to grow up in Woodbridge."

The program, which kicked off yesterday in Woodbridge, is the third such effort in the state. The state Housing and Mortgage Finance Authority or HMFA, part of the DCA, started the initiative earlier this year in Jersey City and Trenton, where more than a dozen families have already applied, according to Marge Della Vecchia, executive director of the authority.

Several other towns plan to sign up, including Elizabeth and Rahway, she said.

"This is a great way to maintain a middle-class base," said Joseph Doria, DCA commissioner, who came up with the program with Gov. Jon Corzine. "And this is the kind of community you want to maintain," he said, pointing out that Woodbridge is the first suburban center included in the effort.

In the program, home buyers who work in the designated town can receive a low-interest, 30- or 40-year, fixed-rate mortgage from the HMFA, which will also offer assistance with down payments or closing costs in an amount equal to 5 percent of the mortgage loan.

"It's a really simple idea, but it makes so much sense," Della Vecchia said. "Home buyers can use those savings towards their mort gages."

Properties that are eligible include one-family homes, condominiums and multifamily units. They must also be under price limits set by the HMFA. For example, in Middlesex County, the maximum for an eligible one-family house would be $429,000.

Interested home buyers should also not exceed an income limit set for each particular county. In Woodbridge, the limit for a two- person household is $96,700. For three or more, it is $111,205.

At a press conference, officials had staged the event at a "typical" starter home, a split-level brown house on Wall Street in the Menlo Park Terrace section of the township. The house is currently on the market for $269,900 -- the perfect place for a new family or singles, said township spokesman John Hagerty.

Shirley Genty, a 29-year-old township resident who runs the Woodbridge Municipal Alliance, is seriously considering filling out an application for the program after she heard about it.

"I think it's great," she said yesterday. "It's a cost-effective way to get to the American dream sooner."