City of Passaic First Time Homebuyer Assistance Program

What is City of Passaic First Time Homebuyer Assistance Program?

City of Passaic First Time Homebuyer Assistance Program is a forgivable loan for homebuyers in Passaic, New Jersey, administered by City of Passaic Department of Community Development.

• Provides qualified low- and very-low-income first-time homebuyers up to $39,500 in HOME funds as a zero-interest, forgivable deferred-payment second mortgage toward down payment and purchase of a home in Passaic. Forgiven if the buyer maintains the home as principal residence through the affordability period (5 years under $15,000; 10 years for $15,000-$40,000).
• Up to $39,500 in HOME funds.
• Zero-interest forgivable second mortgage.
• No monthly payments.
• No prepayment penalty.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from HUD HOME Investment Partnerships Program.

How much assistance does it provide?

City of Passaic First Time Homebuyer Assistance Program offers between $1,000 and $39,500 in assistance.

• Award tiers: Affordability period: $1,000-$14,999 = 5 years; $15,000-$40,000 = 10 years.
• Amounts are the program's published maximums, not an offer — City of Passaic Department of Community Development determines any individual award.

Do you have to pay it back?

City of Passaic First Time Homebuyer Assistance Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Due on title transfer, sale, death of applicant, or ceasing to use the unit as principal residence during the Restricted Affordability Period; forgiven if occupied for the full period.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Passaic First Time Homebuyer Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Passaic First Time Homebuyer Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Applicant must be Low Income (<=80% AMI) or Very Low Income (<=50% AMI) per HUD limits for the Passaic area; income per 24 CFR Part 5. Specific dollar limits by household size not listed in the agreement.
• The limit applies to total household income, not only the borrower&rsquo;s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Passaic First Time Homebuyer Assistance Program caps the purchase price as follows: Appraised value may not exceed HUD's HOME Homeownership Value Limit (references FY2016 limits); specific figure not stated.

• Eligible property types include Single Family, 2-4 Unit, Condo, Townhouse, and Manufactured.
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

City of Passaic First Time Homebuyer Assistance Program is a federal program, so it is not limited to New Jersey.

How do you apply?

Applications for City of Passaic First Time Homebuyer Assistance Program go through City of Passaic Department of Community Development, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Homeowner education course required (provider not specified)..

2. 2

   Contact City of Passaic Department of Community Development to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.