Once a borrower fails the Asset Test due to excessive assets, a six-month lockout period applies before the borrower is eligible to reapply for a DPA loan.

• Lockout Period: The six-month period begins on the date of the asset review decision. New loan reservations are not eligible for this borrower until the six-month period has lapsed.

• Lender changes: The borrower is not eligible to reapply for either DPA program for six months, regardless of the lender used. NJHMFA understands a new lender may not be aware of the asset test failure under a prior lender. NJHMFA will provide reporting once the loan is submitted for review.

• Documentation: NJHMFA will continue to use all asset documentation submitted for review to meet both our sixty-day asset statement requirement and documents used to support:
• Earnest Money Deposit (EMD)
• Payoff of debt
• Gift funds
• At NJHMFA’s discretion, we may require up to 6 months of asset documentation for any borrower that has previously failed the asset test.

Questions? Need Help?

If you have questions about one of our loan products or need help with a loan in the Lender Portal system, please e-mail your requests to SFLenders@njhmfa.gov.

Access Forms, Checklists, Policies, Previous Lender Bulletins, and More at the Lender Resources Page: www.njhousing.gov/lenders/lenderportal

New Jersey Housing and Mortgage Finance Agency | 609-278-7400 | NJHousing.gov