As of September 30, 2013, the Sandy Homebuyer Assistance Program is no longer accepting pre-applications. Applications received through September 30, 2013 will continue to be processed on a first-come, first-serve basis.
1. What is the Sandy Homebuyer Assistance Program?
The State of New Jersey received an allocation of $25 million in CDBG-DR (Community Development Block Grant – Disaster Recovery) funds to provide an increased opportunity for low and moderate income households [80% HUD AMI] to purchase homes in the nine (9) counties most severely impacted by Superstorm Sandy. [Atlantic, Bergen, Cape May, Essex, Hudson, Middlesex, Monmouth, Ocean, Union]
2. How does it benefit me?
Applicants who meet the eligibility criteria for the Sandy Homebuyer Assistance Program will be eligible to receive an incentive of up to $50,000 to reduce the purchase price on a home in one of the nine (9) counties most severely impacted by Superstorm Sandy.
3. Is this a mortgage?
This program will provide a forgivable subordinate mortgage. This means that as long as the applicant abides by the terms of the Sandy Homebuyer Assistance Program, including maintaining the home as their primary place of residence for a five (5) year period, the assistance will be forgiven. There are no monthly payments on this mortgage.
4. Who is eligible for this program?
To be eligible, applicants must meet the following eligibility requirements:
- Must purchase a home located in one of the nine (9) counties most severely impacted by Superstorm Sandy
- Must earn less than or equal to 80% area median income.
- Must have minimum credit score of 620.
- Must qualify for first mortgage to purchase the unit.
5. How do I apply for the program?
Online: Applicants must submit a pre-application by visiting the NJ Housing and Mortgage Finance Agency (HMFA) website at www.njhousing.gov.
By Phone: Applicants may call the reNewJerseyStronger Call Center at 1-855-SANDYHM (726-3946) and a representative will complete an online application for your household.
6. How do I contact a Housing Counselor to begin the process?
Once pre-applications have been submitted, Housing Counselors will contact each household. Applicants will not need to contact the Housing Counselors directly.
7. Can I use any bank or finance company for my mortgage?
Only HMFA-approved mortgage lenders can be used to obtain a mortgage for this program. The list of HMFA-approved lenders can be found at www.njhousing.gov.
8. Will I receive the full $50,000 award to purchase my home?
The maximum award a household may receive is $50,000, but that award may be adjusted to meet certain requirements, based on other financial assistance you may receive to purchase your home.
9. Will I receive the money directly?
No, this award is meant to help reduce the price of the home to be purchased. This award will not be received as cash to the applicant.