Effected Programs: Down Payment Assistance

Effective Date: October 20, 2023

NJHMFA is pleased to announce the Smart Start Plus First-Generation Home Buyer Program that will be released on October 20, 2023. The Smart Start Plus First-Generation Home Buyer Program must be coupled with an HMFA first mortgage program and the Down Payment Assistance Program. Eligible borrowers will be able to receive up to $22,000 for down payment and closing costs depending on the county in which the property being purchased is located.

A first-generation homebuyer is defined as a first time homebuyer who is also either:

a. an individual:

(1) whose parents or legal guardians do not have any present ownership interest in any residential real property in any state or territory of the United States, or outside of the United States; AND    

(2) whose spouse, or domestic partner, and each member of whose household has not, during the 3-year period ending upon acquisition of the eligible home to be acquired using such assistance, had any present ownership interest in any residential real property used as their principal residence in any state or territory of the United States, or outside of the United States; 

OR



b. an individual who has at any time been placed in foster care in the State of New Jersey.  

This change is effective October 20, 2023 and will only apply to new loan reservations. Pipeline loans reserved prior to October 20, 2023 will be eligible for down payment assistance in the amount of $10,0000 or $15,000, but not the additional $7,000 First Generation Assistance. Participating Lenders may not cancel an existing reservation to obtain the new Smart Start Plus First-Generation Home Buyer Program amount except in the case of a new property, or until 60 days after cancellation of a prior reservation.

The following Smart Start DPA documents are being updated and should be used for all new loan reservations effective October 20, 2023. Additionally, the Smart Start Plus First-Generation Program requires all borrowers to sign an affidavit, attesting to their eligibility as a first-generation buyer. These documents will be available in the upcoming days on the Internet Loan Reservation System (ILRS) and on the Lender Portal Page.

• First-Generation Borrower's Affidavit
• DPA Disclosure
• Final Truth in Lending (TIL) Statement
• Smart Start Note
• Smart Start Mortgage
• Lender Underwriting Review Verification (URV)
• Lender Submission Checklist
• Lender Post-Closing Submission Checklist

The ILRS will be updated on October 20^th to include the Smart Start Plus First-Generation Home Buyer Program, and lenders will be required to select the correct first mortgage and DPA program based on First Generation eligibility and the county of the subject property when reserving the loan.

Lenders are required to attend a Mandatory training on these upcoming changes.

Please click the link below to register.

October 17, 2023 at 2:30pm - Register

October 18, 2023 at 10:30am - Register

October 23, 2023 at 2:30pm - Register

The Policy and Procedures for NJHMFA Participating Lenders (Seller’s Guide) will be updated shortly to include guidelines for the Smart Start Plus First-Generation Home Buyer Program.

View the Smart Start Plus First-Generation Home Buyer Program Fact Sheet

View the Single Family Program Highlights Tool