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Middlesex County American Dream Downpayment Program

Middlesex County Division of Housing, Community Development & Social Services · Middlesex County, New Jersey

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Assistance

$5,000

The maximum the program publishes — not an offer

Income limit

$69,700

The household income limit the program publishes

Price cap

$304,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is Middlesex County American Dream Downpayment Program?

Middlesex County American Dream Downpayment Program is a deferred second loan for homebuyers in Middlesex County, New Jersey, administered by Middlesex County Division of Housing, Community Development & Social Services.

  • The Middlesex County American Dream Downpayment Program awards $5,000 in down payment and closing cost assistance to income-eligible first-time homebuyers under the HUD HOME Investment Partnerships Program. Assistance is structured as a deferred repayment mortgage requiring no payment of principal or interest if the buyer owns and occupies the home for five years. Applicants must be Middlesex County residents of at least one year and apply through a HUD-approved housing counseling agency.
  • $5,000 in down payment/closing cost assistance.
  • No principal or interest payments for 5 years.
  • Forgiven obligation after 5 years of owner-occupancy.
  • Interest-free.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from U.S. Dept. of HUD HOME Investment Partnerships Program.

How much assistance does it provide?

Middlesex County American Dream Downpayment Program offers up to $5,000 in assistance.

  • Buyer contribution: Applicant must put down at least 1% of the purchase price from their own funds.
  • Amounts are the program's published maximums, not an offer — Middlesex County Division of Housing, Community Development & Social Services determines any individual award.

Do you have to pay it back?

Middlesex County American Dream Downpayment Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Deferred repayment mortgage; no payment of principal or interest required if the homebuyer owns and lives in the property as primary residence for 5 years.
  • The assistance is recorded in Subordinate position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Middlesex County American Dream Downpayment Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: Not specified; mortgage pre-approval required (issued within past two months).
  • A completed homebuyer education course, through In-person group homebuyer training from a HUD-approved housing counseling agency (PRAB, Faith Fellowship CDC, Housing Authority of Perth Amboy); completed prior to closing.
  • Residency: Must be an existing Middlesex County resident for at least one year.
  • DRAFT (dpa-gap-finder 2026-06-15): pending review. Must be a Middlesex County resident for at least 1 year. Cannot purchase in New Brunswick or Perth Amboy (separate HUD jurisdictions). Purchase price capped at 4x certified household income, max $304,000. Min credit score and DTI not published. Application only through PRAB, Faith Fellowship CDC, or Housing Authority of Perth Amboy.

The program excludes

  • Manufactured homes
  • Purchases above the $304,000 price cap
  • Households above $69,700

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Middlesex County American Dream Downpayment Program limits household income to $69,700.

  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • 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?

Middlesex County American Dream Downpayment Program caps the purchase price at $304,000.

  • Eligible property types include Single-family detached, Townhouse, Condominium, and Co-op.
  • Manufactured homes are not eligible.

Where does it apply?

Middlesex County American Dream Downpayment Program is a federal program, so it is not limited to New Jersey.

How do you apply?

Applications for Middlesex County American Dream Downpayment Program go through Middlesex County Division of Housing, Community Development & Social Services, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through In-person group homebuyer training from a HUD-approved housing counseling agency (PRAB, Faith Fellowship CDC, Housing Authority of Perth Amboy); completed prior to closing..

  2. Contact Middlesex County Division of Housing, Community Development & Social Services to reserve funds

    Funds are reserved through Application through HUD-approved housing counseling agency (PRAB Housing Coalition Unit, Faith Fellowship CDC, or Housing Authority of Perth Amboy); accepted until funds depleted., and are subject to availability.

  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.

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