Buying a house in New Jersey can take a lot of patience, savings, and just plain hard work. Housing prices in the state have gone up in the last decade, making it harder than ever for some buyers to purchase here. However, there are programs that have been specially designed to provide assistance for home buyers in New Jersey who have never bought a home before. If you are a first time home buyer New Jersey, you may be pleasantly delighted to learn that you can qualify for many kinds of useful incentives, programs, and grants as you start the process of buying your first home. This can help make buying a house in the state far more affordable than you might have imagined. Working closely with private lenders, state agencies and the federal government can help you learn what you need to do to get good credit, qualify for the best possible mortgage rate, and move into the house of your dreams.
Where to Get Credit Counseling?Â
Before you start to think about the possibility of buying a house in New Jersey, you should do a credit check. Your spouse should also have one done if you are going to use their income as well to apply for a mortgage. Credit checks help you determine how much of a mortgage you can afford. A credit check also helps you figure out what kind of mortgage rate you are likely to be offered once you start to look for a house. The U.S, Department of Housing and Urban Development offers New Jersey residents access to assistance from housing counseling agencies for a small fee or even free. Working with a counselor can help you decide what kind of mortgage makes sense for your personal situation. A credit counselor can also help you figure out how you can repair any existing credit problems on your current credit record.
Where to Look for Mortgages?Â
Once you have done a credit check, many people start to look at mortgage rates. Mortgage rates can vary depending on multiple factors including your own credit history and the state of the economy. First time home buyers in New Jersey qualify for a program sponsored by Department of Community Affairs (DCA) in New Jersey and a locally based agency known as the New Jersey Housing and Mortgage Finance Agency. This program provides first time buyers access to a fixed rate, thirty year mortgage at 3.75% without any points. The first time buyer can qualify for this low rate even if they have less than ideal credit.  A lower mortgage rate means the  first time home buyer New Jersey can purchase a bigger home in a better neighborhood.
How to Save for a Down Payment?Â
Many first time buyers are low income buyers. Even if you have a lower than average income, you may be surprised that you can still save up for a down payment and become a home owner.  Better yet, you can even get help from the government to save even more money. New Jersey, like many states, has a program called the Individual Development Account. The Individual Development Account is designed to help people save money for a specific purpose such as buying a house or starting a small business. Participants can qualify for matching funds from the state. So if you save a dollar, the state will contribute a dollar to your account. Residents of New Jersey can qualify for this program if they meet certain criteria. Your income should not exceed 200% of the federal poverty guidelines. You must be employed at least twenty hours a week. In turn, the state will match your savings up to $1,500 in any year and up to $4,500 over the course of three years.
Is There Another Way to a Down Payment?Â
First time home buyers in New Jersey often face daunting obstacles just saving up for a down payment. A standard down payment is typically ten to twenty percent of the entire purchase price. With average home prices in New Jersey at roughly a quarter of a million dollars, this you need to save up thousands of dollars just to put a down payment on a given house. This can take years. In the meantime, housing prices can increase even further, making it even harder for you to save up. State government officials in New Jersey recognize this problem. To that end, they have special programs just for first time home buyers in the state that can help decrease the amount of money necessary for a down payment. A buyer can purchase a home with as little as a 3.5% down payment rather than the standard twenty percent. Income requirements vary by county. For example, if you want to buy in Essex, Morris, Sussex or Union county, you may earn no more than $91,500 in a given year.
What Are Other Kinds of Assistance?
If you live and work in New Jersey as  firefighter or police office, you can get help from the state when buying a house. Those who have at least one year of service can qualify for special mortgages designed to help reward members of certain professions buy a house in the state. In turn, buyers get a lowered mortgage rate that can help push your dollars further.
2 Point Highlight
The U.S Department of Housing and Urban Development offers New Jersey residents access to assistance from housing counseling agencies for a small fee or even free.
First time home buyers in New Jersey qualify for a program sponsored by Department of Community Affairs (DCA) in New Jersey and a locally based agency known as the New Jersey Housing and Mortgage Finance Agency.
