Low Interest Rate to Encourage ³Ô¹ÏºÚÁÏ Sales during the ³Ô¹ÏºÚÁÏ Buying Season
TRENTON, N.J. – In an effort to further boost the state’s housing market, the Department of Community Affairs (DCA) and the ³Ô¹ÏºÚÁÏ Housing and Mortgage Finance Agency (HMFA) today announced a new, fixed interest rate mortgage of 3.5 (est. APR 3.75 percent) with a 30-year term and no points for qualified first-time homebuyers and Urban Target Area borrowers. The new interest rate, which becomes effective today, is the lowest rate ever offered by the HMFA.
In addition to the 3.5 percent ³Ô¹ÏºÚÁÏ Buyer Program interest rate (est. APR 3.75 percent), the HMFA is also offering a low interest rate mortgage program for members of the ³Ô¹ÏºÚÁÏ Police and Firemen's Retirement System who have a minimum of one year of creditable service. The current interest rate is fixed at 2.88 percent (est. APR 2.95 percent) for a 30-year term with a maximum mortgage amount of $417,000. This financing can be used to buy an owner-occupied principal residence.
"These new, attractive mortgage interest rates coupled with quality housing in the state’s inventory create a perfect scenario for those contemplating their dream of home ownership," said Department of Community Affairs (DCA) Acting Commissioner Richard E. Constable, III, who is Chair of the HMFA. "In addition to creating jobs and improving our schools, we emphasize housing opportunities. ³Ô¹ÏºÚÁÏ ownership is a key priority and we are confident these new rates will help to jump-start the real estate market."
HMFA loans are made even more affordable because HMFA borrowers can take advantage of the Agency’s very attractive Smart Start down payment/closing cost program. Accumulating the funds for down payment and closing costs of purchasing a home is a common barrier for potential homeowners. The Smart Start Program is available to participants in the HMFA’s ³Ô¹ÏºÚÁÏ Buyer Program who are purchasing homes in Smart Growth areas. The program helps these families by offering a second mortgage for down payment and/or closing costs in an amount up to 4 percent of the first mortgage.
"There has never been a better time to buy a home in ³Ô¹ÏºÚÁÏ. The HMFA plays an instrumental role in providing funding for affordable home ownership opportunities for ³Ô¹ÏºÚÁÏ residents. This includes offering affordable home mortgages for first-time home buyers and encouraging owner-occupied housing growth as a means to stabilize ³Ô¹ÏºÚÁÏ neighborhoods," said HMFA Executive Director Anthony L. Marchetta. "This new, low interest rate achieves both goals. We are so pleased to offer this opportunity to people who might otherwise not be in a position to buy a home."
Since its inception in 1983, the HMFA has provided low-cost homeownership financing to over 97,000 ³Ô¹ÏºÚÁÏ families and aims to continue to offer the best possible mortgage products to consumers purchasing a home. HMFA offers a variety of mortgage loan products. Rates are subject to change. Prospective borrowers should contact their local lenders for more details. A list of participating HMFA lenders is available on the Agency’s Web site at