First-time homebuyers in New Jersey have numerous options when deciding where to live. The state’s diverse landscape makes it an ideal place to live, whether you prefer a city or country environment.
Although many people put off purchasing a home because they worry about affording it, first-time buyers can rely upon state and federal assistance to realize their dreams of homeownership.
Federal mortgage programs
Various federal mortgage programs offer first-time buyers assistance through favorable loan terms. For example, Federal Housing Administration loans come with flexible down payment requirements reflecting buyers’ credit scores. Other federal incentives include the Federal Department of Agriculture’s down payment waiver to encourage suburban and rural homeownership among low-income purchasers. However, both organizations require mortgage insurance backing. Finally, veterans and their family members may qualify for Veteran’s Administration-backed loans without a credit score or downpayment requirement.
State mortgage programs
The New Jersey Housing and Mortgage Finance Agency offer various programs to help first-time buyers afford mortgage payments. The first step requires prospective home buyers to fill out a state application to find a mortgage lender participating in the state’s Housing Finance Agency program. HFA lenders provide 30-year, fixed-rate mortgages to borrowers who meet specific debt-to-income criteria and want to purchase qualifying homes in New Jersey. First-time borrowers may also receive an interest-free, five-year forgivable loan of $10,000 to apply toward a down payment and closing costs.
The state also assists New Jersey Police and Firemen’s Retirement System members through a separate mortgage program. Loan applicants must serve for at least one year and purchase a home below the state’s maximum limit to qualify for loans with a 30-year stable interest rate.
First-time homebuyers in New Jersey can rely upon various state and federal programs to bring them closer to closing on their dream homes.
