City of Trenton First Time Homebuyer Program

What is City of Trenton First Time Homebuyer Program?

City of Trenton First Time Homebuyer Program is a forgivable loan for homebuyers in Trenton, New Jersey.

• Trenton HOME-funded $20,000 forgivable second for first-time homebuyers. 80% AMI cap. 10-year affordability period. Distinct from Mercer County Consortium program.
• Up to $20,000 in HOME-funded down payment and closing cost assistance for first-time homebuyers purchasing in the City of Trenton. 0% interest deferred-payment forgivable second mortgage. 10-year HOME affordability period (since amount > $15K). 80% AMI cap (Trenton-Princeton HMFA / NY-Newark HMFA). Trenton has its own HOME entitlement separate from Mercer County Consortium. Pairs with FHA/VA/USDA/conventional first mortgages.
• Funding comes from Federal HOME.

Do you have to pay it back?

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

• Repayment is triggered by 10-year HOME affordability period and lien forgiven at end of term. Prorated balance due on early sale, transfer, cash-out refi, or non-owner-occupancy.
• The assistance is recorded in 2 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 Trenton First Time Homebuyer 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 Trenton First Time Homebuyer Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% AMI Trenton-Princeton HMFA. Approximate 2025: $68,500 (1-person) to $129,100 (8-person).
• The limit applies to total household income, not only the borrower’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 Trenton First Time Homebuyer Program caps the purchase price as follows: Per HOME 95% AMPP for Trenton HMFA (verify current limit with Trenton DOH).

• Eligible property types include Single-family detached, Townhome, Rowhouse, Condominium, and 2-4 unit owner-occupied.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

City of Trenton First Time Homebuyer Program serves buyers purchasing in Trenton, New Jersey.

How do you apply?

Applications for City of Trenton First Time Homebuyer Program go through the administering agency, 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 HUD-approved housing counseling agencies (HomeFront, Princeton-Mercer NeighborWorks, NJ Citizen Action)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application to Trenton Department of Housing & Economic Development. First-come, first-served subject to HOME funding cycle., 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.