Home Start, Inc., A Member of The Affordable Homes Group


Opportunities for First Time Homebuyers First Time Homebuyer Tax Credit The $8,000 Firs Time Homebuyer Tax Credit is made available through the American Recovery and Reinvestment Act of 2009. It is available to qualifying households who signed contracts of sale by April 30th, 2010 and who close on the purchase of their homes by June 30th, 2010.* On Wednesday, June 16th the United States Senate passed a bill that would amend the existing tax credit bill to extend the closing date deadline to September 30th. This applies only to those who signed contracts by April 30th and does not create any new eligibility for the tax credit. The amendment must still pass the House of Representatives and be signed into law by the President before it becomes final. Helpful resources to explain the First Time Homebuyer Tax Credit are available through NeighborWorks America, the National Association of Home Builders, and the IRS websties. Affordable First Time Homebuyer Mortgage Loans* Under the Federal Community Reinvestment Act (CRA), banks are required to make loans each year to qualifying low and moderate income families. These loans are affordable, conventional loan options for first time buyers. Through most local lenders, the CRA loan requires just a 3% down payment. These loans also have very low interest rates, usually 0.5% to 1% lower than the rate offered to regular conventional borrowers. While most banks require private mortgage insurance (PMI) when a borrower puts down less than 20% of the purchase price, some of the CRA loan programs waive the requirement for qualifying first time buyers. The CRA loan is a conventional product, so applicants must qualify for a bank's conventional financing program to be eligible. Those customers with a weaker credit history may not be eligible, and instead qualify for a government-insured loan, like an FHA loan (see below). Federal Housing Administration (FHA) Insured Loans The Federal Housing Administration, a part of the U.S. Department of Housing and Urban Development offers a mortgage insurance program for borrowers who do not qualify for conventional lending, which may be a result of credit history, income, debt, etc. Through the FHA-insured loan programs, borrowers can obtain loan financing secured with affordable FHA mortgage insurance. Borrowers can apply for FHA-insured financing through their local bank or mortgage company. For more information on the FHA loan, please visit the Federal Housing Administration website at: http://www.hud.gov/offices/hsg/sfh/ins/sfh203b.cfm. Although not widely available with many lenders, the there is even an FHA buy-it-and-fix-it loan program. For more details, see here: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm. County Closing Cost Assistance Programs The Burlington County First Time Homebuyer Program will pay up to $4,000* for closing costs and give an additional $5,000** as added down payment money on behalf of a buyer if: Buyer is an existing resident of Burlington County. Buyer's household qualifies as low or moderate income (see income limits). Buyer has completed an approved homebuyer training program, such as through Home Start, Inc. Buyer is receiving a mortgage loan through a participating lender, which does not include unacceptable terms (such as balloon payments, excessive points or down payment requirements, or an interest rate that is more than 1% over the prevailing rate). Buyer contributes a minimum of 3% of the purchase price out of their own funds towards the transaction. Buyer must have no more than 20% of the purchase price available in liquid assets. Any assets in excess of 20% must be applied to the purchase price. Property being purchased is located in Burlington County (with the exception of four towns that do not participate: Beverly City, Medford Lakes, Palmyra Borough and Wrightstown Borough). Buyer must live in the property as a primary residence for six years. If the property is vacated or sold before six years, the loan is due and payable in full. The $4,000 towards closing costs is a six year forgivable loan with 0% interest. Buyer must remain an owner-occupant in the property for six years, after which the loan may be forgiven. If the buyer sells the home before the six year period is over, the loan is due and payable and full at closing. Note that the program will not pay Attorney's Fees, Points or Mortgage Insurance as closing costs. The $5,000 towards down payment is a 0% interest, deferred loan and is due and payable in full whenever the property is sold or no longer occupied by the borrower. Eligibility is determined by the Burlington County Community Development Office, and not Home Start, Inc. Interested applicants should contact the Burlington County Community Development Office at (609) 265-5072 to confirm household eligibility and available funding for the program. The program is funded by Federal HOME money allocated through the County and may not be available at all times during the year. Home Start cannot guarantee that an applicant is qualified to receive county funds, nor can we guarantee that you will qualify for the Community Development program funding. Similar down payment and closing cost assistance programs are offered in Camden* and Gloucester counties, but the guidelines and structure for each program is unique. For more information on these programs you should contact: Camden County Community Development Office (856) 374-2587 or bpugh@camdencounty.com Gloucester County Division of Housing & Community Development (856) 384-6868 or bcarey@co.gloucester.nj.us 4x Dollar Matching for Down Payment and Closing Costs The Federal Home Loan Bank of New York (FHLBNY) offers a savings program called the First Home Club, where borrowers receive four times their savings, up to $7,500, towards down payment and/or closing costs. A qualifying borrower who saves up to $1,875 may receive the matching grant of up to $7,500 upon the purchase of a home. Borrowers must participate in a dedicated savings plan for a minimum of 10 months or maximum of 24 months to qualify for the matching money. To begin the program, a savings plan is determined whereby a household systematically saves money for the stated period of time (minimum of ten months) until the savings goal is achieved. Savings must be completed on a steady, monthly basis - no lump sum payments. Once the savings plan is complete, the FHLBNY will match 4x the household's funds at closing. To determine if you are income eligible, first see that you do not exceed the regional income limits for a moderate income household. Next, read the information packet that Home Start has prepared for those interested in the program here. Purchase Price Subsidy From time to time, towns will offer grant money to subsidize the purchase of an existing home within the community. A deed restriction will be placed on the property, requiring it to remain affordable for a certain number of years, determined by the township. New opportunities will be announced as they become available. First Time Homebuyer Loan and Smart Start Closing Cost Funds from the State of New Jersey The Housing and Mortgage Finance Agency of New Jersey offers a special loan and grant program to first time homebuyers. The loan program, available to New Jersey residents making less than median income, is offered through participating banks and lenders throughout the state. Borrowers must first qualify in a conventional or FHA program, and the mortgage application and mortgage approval process continue within the same guidelines of the loan program.. The Smart Start grant is available to help pay closing costs. Low to moderate income households purchasing in designated Smart Growth areas may be eligible to receive up to 4% of the loan amount for closing costs. Borrowers must be obtaining their mortgage loan through the state program to apply for these funds. For details about the loan, or to search for a local lender who offers the state loan program, visit the NJ Housing & Mortgage Finance Agency website. USDA Rural Housing Services Loan The United States Department of Agriculture offers a variety of loan programs to income-qualifying households. One of the more sough-after loan programs is the Section 502 Direct loan, which offers 100% financing with subsidized interest rates to low and very low-income individuals and families buying homes in rural areas. The subsidized interest rates help reduce the monthly payment on a mortgage loan, thereby allowing families of smaller means to borrow enough money to purchase homes. More information about the Direct loan program, as well as the other USDA loan programs, is available on their website. **Please note that Home Start does not guarantee that any individual attending homebuyer education will qualify for grant or loan funding. All households must meet the eligibility requirements of the loan or grant programs at the time of application. Home buyers should always verify that they qualify for a loan or grant program directly with the source that offers the funding or financing.
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Opportunities for First Time Homebuyers

First Time Homebuyer Tax Credit

The $8,000 Firs Time Homebuyer Tax Credit is made available through the American Recovery and Reinvestment Act of 2009. It is available to qualifying households who signed contracts of sale by April 30th, 2010 and who close on the purchase of their homes by June 30th, 2010.*

*On Wednesday, June 16th the United States Senate passed a bill that would amend the existing tax credit bill to extend the closing date deadline to September 30th. This applies only to those who signed contracts by April 30th and does not create any new eligibility for the tax credit. The amendment must still pass the House of Representatives and be signed into law by the President before it becomes final.

Helpful resources to explain the First Time Homebuyer Tax Credit are available through NeighborWorks America, the National Association of Home Builders, and the IRS websties.

Affordable First Time Homebuyer Mortgage Loans

Under the Federal Community Reinvestment Act (CRA), banks are required to make loans each year to qualifying low and moderate income families. These loans are affordable, conventional loan options for first time buyers. Through most local lenders, the CRA loan requires just a 3% down payment. These loans also have very low interest rates, usually 0.5% to 1% lower than the rate offered to regular conventional borrowers. While most banks require private mortgage insurance (PMI) when a borrower puts down less than 20% of the purchase price, some of the CRA loan programs waive the requirement for qualifying first time buyers.

The CRA loan is a conventional product, so applicants must qualify for a bank's conventional financing program to be eligible. Those customers with a weaker credit history may not be eligible, and instead qualify for a government-insured loan, like an FHA loan (see below).

Federal Housing Administration (FHA) Insured Loans

The Federal Housing Administration, a part of the U.S. Department of Housing and Urban Development offers a mortgage insurance program for borrowers who do not qualify for conventional lending, which may be a result of credit history, income, debt, etc. Through the FHA-insured loan programs, borrowers can obtain loan financing secured with affordable FHA mortgage insurance. Borrowers can apply for FHA-insured financing through their local bank or mortgage company. For more information on the FHA loan, please visit the Federal Housing Administration website at: http://www.hud.gov/offices/hsg/sfh/ins/sfh203b.cfm.

Although not widely available with many lenders, the there is even an FHA buy-it-and-fix-it loan program. For more details, see here: http://www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm.

County Closing Cost Assistance Programs

The Burlington County First Time Homebuyer Program will pay up to $4,000* for closing costs and give an additional $5,000** as added down payment money on behalf of a buyer if:

Buyer is an existing resident of Burlington County.
Buyer's household qualifies as low or moderate income (see income limits).
Buyer has completed an approved homebuyer training program, such as through Home Start, Inc.
Buyer is receiving a mortgage loan through a participating lender, which does not include unacceptable terms (such as balloon payments, excessive points or down payment requirements, or an interest rate that is more than 1% over the prevailing rate).
Buyer contributes a minimum of 3% of the purchase price out of their own funds towards the transaction.
Buyer must have no more than 20% of the purchase price available in liquid assets. Any assets in excess of 20% must be applied to the purchase price.
Property being purchased is located in Burlington County (with the exception of four towns that do not participate: Beverly City, Medford Lakes, Palmyra Borough and Wrightstown Borough).
Buyer must live in the property as a primary residence for six years. If the property is vacated or sold before six years, the loan is due and payable in full.

*The $4,000 towards closing costs is a six year forgivable loan with 0% interest. Buyer must remain an owner-occupant in the property for six years, after which the loan may be forgiven. If the buyer sells the home before the six year period is over, the loan is due and payable and full at closing. Note that the program will not pay Attorney's Fees, Points or Mortgage Insurance as closing costs.

**The $5,000 towards down payment is a 0% interest, deferred loan and is due and payable in full whenever the property is sold or no longer occupied by the borrower.

Eligibility is determined by the Burlington County Community Development Office, and not Home Start, Inc. Interested applicants should contact the Burlington County Community Development Office at (609) 265-5072 to confirm household eligibility and available funding for the program. The program is funded by Federal HOME money allocated through the County and may not be available at all times during the year. Home Start cannot guarantee that an applicant is qualified to receive county funds, nor can we guarantee that you will qualify for the Community Development program funding.

Similar down payment and closing cost assistance programs are offered in Camden and Gloucester counties, but the guidelines and structure for each program is unique. For more information on these programs you should contact:

Camden County Community Development Office (856) 374-2587 or bpugh@camdencounty.com

Gloucester County Division of Housing & Community Development (856) 384-6868 or bcarey@co.gloucester.nj.us

4x Dollar Matching for Down Payment and Closing Costs

The Federal Home Loan Bank of New York (FHLBNY) offers a savings program called the First Home Club, where borrowers receive four times their savings, up to $7,500, towards down payment and/or closing costs. A qualifying borrower who saves up to $1,875 may receive the matching grant of up to $7,500 upon the purchase of a home. Borrowers must participate in a dedicated savings plan for a minimum of 10 months or maximum of 24 months to qualify for the matching money.

To begin the program, a savings plan is determined whereby a household systematically saves money for the stated period of time (minimum of ten months) until the savings goal is achieved. Savings must be completed on a steady, monthly basis - no lump sum payments. Once the savings plan is complete, the FHLBNY will match 4x the household's funds at closing.

To determine if you are income eligible, first see that you do not exceed the regional income limits for a moderate income household. Next, read the information packet that Home Start has prepared for those interested in the program here.

Purchase Price Subsidy

From time to time, towns will offer grant money to subsidize the purchase of an existing home within the community. A deed restriction will be placed on the property, requiring it to remain affordable for a certain number of years, determined by the township. New opportunities will be announced as they become available.

First Time Homebuyer Loan and Smart Start Closing Cost Funds from the State of New Jersey

The Housing and Mortgage Finance Agency of New Jersey offers a special loan and grant program to first time homebuyers. The loan program, available to New Jersey residents making less than median income, is offered through participating banks and lenders throughout the state. Borrowers must first qualify in a conventional or FHA program, and the mortgage application and mortgage approval process continue within the same guidelines of the loan program..

The Smart Start grant is available to help pay closing costs. Low to moderate income households purchasing in designated Smart Growth areas may be eligible to receive up to 4% of the loan amount for closing costs. Borrowers must be obtaining their mortgage loan through the state program to apply for these funds.

For details about the loan, or to search for a local lender who offers the state loan program, visit the NJ Housing & Mortgage Finance Agency website.

USDA Rural Housing Services Loan

The United States Department of Agriculture offers a variety of loan programs to income-qualifying households. One of the more sough-after loan programs is the Section 502 Direct loan, which offers 100% financing with subsidized interest rates to low and very low-income individuals and families buying homes in rural areas. The subsidized interest rates help reduce the monthly payment on a mortgage loan, thereby allowing families of smaller means to borrow enough money to purchase homes. More information about the Direct loan program, as well as the other USDA loan programs, is available on their website.

**Please note that Home Start does not guarantee that any individual attending homebuyer education will qualify for grant or loan funding. All households must meet the eligibility requirements of the loan or grant programs at the time of application. Home buyers should always verify that they qualify for a loan or grant program directly with the source that offers the funding or financing.

Back to Home Start, Inc.

Delta Real Estate Homes of Hope People First

The Salt & Light Co., Inc. Contact Us