Making Home Affordable Allows Modification of Second Mortgages
You Can NOT use the tax credit for down payment

The New Jersey Housing Mortgage Finance Agency (NJHMFA) offers below-market, interest rates

NJHMFA Decreases First-Time Home Buyer Interest Rates

The New Jersey Housing Mortgage Finance Agency (NJHMFA) offers below-market, fixed interest rates to first-time home buyers and urban area buyers. Effective May 5, 2009, the interest rates for a 30 year term first-time home buyer loan are as follows:

  • 5.500% - First Mortgage with no Smart Start assistance
  • 5.875% - First Mortgage with 2% Smart Start assistance
  • 6.000% - First Mortgage with 3% Smart Start assistance
  • 6.250% - First Mortgage with 4% Smart Start assistance

*The 40 year term requires an additional add-on of .125%

The NJHMFA is also offering 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 as part of their "Pre-fund" program.

The loan functions 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 2009. For more information on the NJHMFA's first-time home buyer programs, visit the NJHMFA website or call 1-800-NJ-HOUSE.

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