First-Time Homebuyer's Program

First-Time Homebuyer's Program is a forgivable loan for homebuyers in Paterson, New Jersey. Paterson HOME-funded $10,000 forgivable second for first-time homebuyers. 80% AMI cap. 5-year affordability period. Up to $10,000 in HOME-funded down payment and closing cost assistance for first-time homebuyers purchasing in the City of Paterson. 0% interest deferred-payment forgivable second mortgage. 5-year HOME affordability period. 80% AMI cap (Bergen-Passaic HMFA). Pairs with FHA/VA/USDA/conventional. Funding comes from Federal HOME.

First-Time Homebuyer's Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by 5-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.

First-Time Homebuyer's Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: HUD 24 CFR 92.2 displaced-homemaker / single-parent exceptions. On credit, the program states: First-mortgage lender overlays apply. A homebuyer education course is required, through HUD-approved housing counseling agencies (NJ Citizen Action, New Jersey Community Capital, Hispanic Multi-Purpose Service Center). Residency requirement: Property must be in City of Paterson. Citizenship or immigration status: U.S. citizen or eligible non-citizen per HOME rules. First-time homebuyer (no primary residence in past 3 years; HUD exceptions). 80% AMI cap. Property in City of Paterson. Owner-occupied primary residence. $1,000 minimum buyer contribution. HUD-certified homebuyer counseling. HQS inspection. Lead-based paint clearance for pre-1978.

First-Time Homebuyer's 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 Bergen-Passaic 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.

First-Time Homebuyer's Program caps the purchase price as follows: Per HOME 95% AMPP for Bergen-Passaic HMFA (verify current limit with Paterson CDHD). Eligible property types include Single-family detached, Townhome, Condominium, and 2-4 unit owner-occupied. New construction is eligible. Manufactured homes are not eligible.

First-Time Homebuyer's Program serves homebuyers purchasing in Paterson, New Jersey.

Applications for First-Time Homebuyer's Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Application to Paterson Community Development & Housing Division. First-come, first-served subject to HOME funding cycle. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.