First-Time Homebuyer's Program

What is 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.

Do you have to pay it back?

First-Time Homebuyer's Program is forgiven after 5 years, so a buyer 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.

Who qualifies?

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

What are the income limits?

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.

What kind of home can it be used for?

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.

Where does it apply?

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

How do you apply?

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.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved housing counseling agencies (NJ Citizen Action, New Jersey Community Capital, Hispanic Multi-Purpose Service Center)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application to Paterson Community Development & Housing Division. 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.