Live Newark Home Closing Cost Program

What is Live Newark Home Closing Cost Program?

Live Newark Home Closing Cost Program is a forgivable loan for homebuyers in Newark, New Jersey.

• Newark HOME/CDBG-funded $10,000 closing cost forgivable second for first-time homebuyers. 80% AMI cap. Min FICO 660. 5-year affordability period.
• Up to $10,000 in closing cost assistance for first-time homebuyers purchasing in the City of Newark. 0% interest deferred-payment forgivable second mortgage. 5-year HOME/CDBG affordability period. 80% AMI cap (Essex County / New York-Newark HMFA). Min FICO 660. Newark resident or city employee preference. Pairs with FHA/VA/USDA/conventional first mortgages.
• Funding comes from Federal HOME, Federal CDBG, and Local Government.

Do you have to pay it back?

Live Newark Home Closing Cost Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 5-year HOME/CDBG 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?

Live Newark Home Closing Cost Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Live Newark Home Closing Cost 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 Essex County / New York-Newark HMFA. Approximate 2025: $66,300 (1-person) to $124,950 (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?

Live Newark Home Closing Cost Program caps the purchase price as follows: Per HOME 95% AMPP for Essex County (verify current limit with Newark EHCD).

• 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?

Live Newark Home Closing Cost Program serves buyers purchasing in Newark, New Jersey.

How do you apply?

Applications for Live Newark Home Closing Cost 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 (Brand New Day, La Casa de Don Pedro, NJ Citizen Action)..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application to City of Newark Department of Economic & Housing Development. First-come, first-served subject to HOME/CDBG 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.