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.
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.