TRENTON, NJ – Continuing the Christie Administration’s efforts to encourage sustainable homeownership, the New Jersey Housing and Mortgage Finance Agency (HMFA) announced today the launch of the New Jersey HomeSaver Program (HomeSaver), a foreclosure prevention initiative. The HomeSaver program offers eligible New Jersey homeowners up to $50,000 in financial assistance to help bring their monthly household payment to an affordable level. The program has been allocated over $17 million in federal Hardest Hit Funds, which are used to create locally-tailored foreclosure prevention programs to assist families across the country who have found themselves unable to pay their mortgages. It is anticipated that 345 households will be assisted.
“The goal of the HomeSaver program is to facilitate long-term mortgage sustainability across the state by leveraging the Hardest Hit Funds provided by the U.S. Treasury,” said New Jersey Department of Community Affairs Commissioner Charles A. Richman, who also serves as Chairman of the HMFA. “We are excited to support yet another foreclosure prevention resource provided by the HMFA to help alleviate the problem of foreclosure in our communities.”
Program eligibility requires that a homeowner be at risk of foreclosure due to financial hardship such as recent unemployment or a reduction in income, as well as meeting other criteria. Unlike other foreclosure prevention efforts, homeowners do not have to be delinquent on their mortgage payments to qualify for the program. However, they must meet their mortgage servicer or investor’s guidelines for a modification, recast, refinance or principal reduction in order to participate in the program.
The first step in applying for the HomeSaver program is for a homeowner to contact their mortgage servicer directly to find out if they are participating in the program, servicer participation is voluntary.
“The HMFA’s HomeSaver program will significantly help reduce the likelihood of mortgage delinquency and default in our state and help improve the quality of life of our hardworking residents,” said HMFA Executive Director Anthony L. Marchetta. “We are pleased to administer this program, which expands the Christie Administration’s efforts to prevent foreclosure.”
Program assistance will be provided to the homeowner in the form of a 0% interest rate, non-amortizing (no monthly payments), forgivable, 10-year loan. After the fifth year of the closing date of the HomeSaver loan, the HomeSaver loan amount will be forgiven at a rate of 20% per year, to be forgiven in full at the end of the tenth year.
For more information on the HomeSaver program, visit http://www.njhousing.gov