NJ Housing Mortgage Finance Agency Offers Cash Advance for First-time Buyer Costs
Program offers up to $5,000 cash to qualified first-time home buyers
The New Jersey Housing Mortgage Finance Agency (NJHMFA) is offering cash payments of up to $5,000 for qualified first-time home buyers to help defray closing costs or satisfy down payment requirements and help new buyers to get into the housing market.
The loan, offered as part of NJHMFA’s “Prefund” program, would function like a cash advance against the $8,000 tax credit being offered to first-time buyers who purchase a home between April 8 and December 1 of this year. In its simplest terms, purchasers would be provided with the payment as a loan and would be required to repay the advance when they receive their federal tax credit.
“This is a powerful incentive that will allow potential first time home buyers to actually enter the market because this cash advance will help them meet down payment requirements or pay for closing costs that might otherwise be an obstacle to a first-time buyer,” said Jarrod C. Grasso, RCE, executive vice president of NJAR®.
The cash advance is available to first-time home buyers who:
1) Arrange their financing through the NJHMFA. (Obtain a list of participating lenders by calling (800) NJ HOUSE)
2) Are qualified for the tax credit offered as a part of the federal stimulus program
3) Pledge to apply the proceeds of their tax credit to repay the cash
View the full details of the NJHMFA’s First-Time Home Buyers Tax Credit Loan Program (TCLP).