NJ REALTORS® say state programs make homeownership in NJ more affordable than ever
Programs help remove barriers for first-time buyers and others
(Edison, NJ) Record low mortgage rates and an abundance of housing choice have combined to make home buying extremely affordable across the nation. Programs offered by the New Jersey Housing and Mortgage Financing Agency (HMFA) can supercharge affordability and make owning a home in New Jersey easier than it has ever been, according to the New Jersey Association of REALTORS® (NJAR®).
"The HMFA's programs are designed to make housing more affordable for first-time home buyers anywhere in the Garden State and for any buyer of a home in a designated urban area," said Judy Appleby, 2010 president of NJAR®.
"The HMFA should be one of the first stops for a potential purchaser of a home. The Agency has designed its programs to help New Jersey families realize the dream of homeownership and has designed its programs to be consumer-friendly and to give New Jersey's families an advantage in the national real estate market," said Lori Grifa, Commissioner of the New Jersey Department of Community Affairs and chair of the HMFA.
"By reducing, or in some cases eliminating, the required cash down payment, the HMFA has removed a significant obstacle faced by first-time home buyers," Appleby said.
"The HMFA is an extraordinary partner for home buyers in New Jersey," Appleby added.
"Even though these programs have made purchasing a home more affordable, the home buying transaction still requires the assistance of a trained professional. Members of the New Jersey Association of REALTORS® have been working with the HMFA since its inception and stand ready to assist buyers, sellers and the Agency in making the home buying transaction come together smoothly," Appleby said.
The HMFA's programs include:
First-time Homebuyer Mortgage Programs
Becoming a first-time home buyer in New Jersey is made easier and more affordable when you use one of the HMFA's mortgage programs. Once you determine how much house you can afford to buy, the HMFA lenders can help you determine which program is the most advantageous for you.
Who qualifies:
- First-time home buyers who meet income eligibility requirements
- Home buyers who purchase a home in an identified urban area
How it works:
- Low-cost, fixed-rate mortgages are available through over 75 lenders. The list of approved lenders can be found at www.state.nj.us/dca/hmfa/consu/buyers/lender_list.pdf.
- Cash down payments may be as low as 3 percent.
- Special programs can reduce down payments to 0 percent.
- The HMFA offers assistance with down payment and/or closing costs.
- Area income and purchase price limitations apply.
Live Where You Work (LWYW)
LWYW provides low-interest mortgage loans to home buyers purchasing homes in towns where they work.
The goal of LWYW is to build stronger communities by promoting homeownership and encouraging people to live closer to their jobs. By living closer to home, we reduce the dependence on cars, and increase the use of alternate transportation such as walking, biking and public transit.
Who qualifies:
- First-time and urban area home buyers who want to purchase a home in the same town in which they are employed as long as that town is one of a growing list of participating municipalities.
- To see which municipalities are currently participating, visit www.state.nj.us/dca/hmfa/consu/buyers/close/live.html#2.
How it works:
LWYW is a program that provides 5 percent forgivable down payment and closing cost assistance coupled with low-interest fixed-rate mortgage loans.
- Properties must be located in a participating Live Where You Work municipality.
- Eligible properties include one-family units, including condominiums, (new and existing), and existing 2- to 4-family unit properties that are more than 5 years old.
Smart Start
Offers down payment and/or closing cost help in the form of a second mortgage for consumers purchasing in a designated Smart Growth Area in New Jersey.
Who qualifies:
- Home buyers who are participants in the HMFA's first mortgage home buyer program and who are purchasing in a Smart Growth area.
How it works:
- The program helps these families by offering a second mortgage for down payment and/or closing costs up to 4 percent of the first mortgage.
CHOICE
Home builders, Home buyers, and the HMFA work together to provide affordable homes and accessible mortgages to first-time home buyers and those seeking to purchase a home in a designated urban area.
How it works:
- The HMFA works directly with developers to provide them with low-interest construction loans for new construction or the rehabilitation of housing.
- The HMFA also provides favorable financing for eligible buyers of these units.
- CHOICE aims to promote both viable and affordable markets in urban and suburban municipalities; while also enabling homeownership opportunities for workforce and middle-income households.
The New Jersey Association of REALTORS® is a non-profit organization serving the professional needs of approximately 48,000 REALTOR® and REALTOR-ASSOCIATE® members in the state. REALTOR® is a registered collective membership mark which may be used only by real estate professionals who subscribe to the REALTOR® organization's strict Code of Ethics and are members of the national, state and local REALTOR® organizations. For more information, please visit www.njar.com.
The NJAR® Get the Real Story® program is a public education campaign that encourages consumers to take a closer look at local market conditions, state or regional economic factors, and their own personal circumstances when making a decision about buying or selling property in today's market. The campaign encourages consumers to Get the REAL Story® on real estate in New Jersey by visiting www.REALstoryNJ.com and working with a professional REALTOR®.
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