Grants To Help With Down Payment In New Jersey

The New Jersey Housing And Mortgage Finance Agency (NJHMFA) offers a Smart Start Program that provides a grant that is available to participants in the Agency’s First-Time Homebuyer program who are purchasing their first home in a Smart Growth Area. The program helps these families by offering a second mortgage for downpayment and/or closing costs up to 4% of the first mortgage.

New Jersey First Time Home Buyer GrantThe NJHMFA will make Smart Start downpayment and/closing cost loans in the amount of up to 4% of the first mortgage to qualified Home Buyer Program borrowers who are purchasing a residence in Smart Growth areas as determined by the Agency’s Site Evaluator. For example, on a $400,000 mortgage, 4% would be would be an endowment of $16,000.00.

The interest rate on the Smart Start second mortgage is 0%, and there are no monthly payments. If the Borrower continuously resides in the property as his/her principal
residence for five (5) years from the date of the closing of the loan, the principal on the Note will have been deemed satisfied and the Lender will provide the Borrower with a cancellation of mortgage, thus the entire loan turns into a grant.

To get complete details on this New Jersey first time home buyer grant, visit the NJHMFA webpage, check out the fact sheet, and/or contact them directly:

call 1-800-NJ-HOUSE

New Jersey First Time Home Buyer Grants