Program Provides Down Payment Assistance
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Program Provides Down Payment Assistance |
The Somerset County Homebuyer Downpayment Assistance Program (HDAP) offers a down-payment grant to income-eligible renters who live or work in Somerset County . The program is seeking renters who are unable to save for a home within Somerset County because their current housing costs are so high. These households could afford a monthly mortgage payment, which might even be lower than their rent, if they were to receive a down-payment assistance grant. Once they are preapproved by a bank to receive a mortgage, HDAP will work to provide them with homebuyer education and a down-payment assistance grant. The Somerset County Community Development Office will certify that an applicant is eligible after he or she has been preapproved by a mortgage lender; has saved at least 2 percent of the purchase price that they have been preapproved for; and has attended a homebuyer education class. Once the applicant identifies a unit and meets with a housing counselor to make sure that pre-purchase housing costs are affordable, the Community Development Office will provide a commitment letter stating the amount of the grant that the applicant will receive. This step must happen before the unit is under contract. The amount of the grant will be determined by the purchase price that the applicant has been pre-approved for, the amount of savings that the applicant has, and post-purchase housing costs. In addition, the applicant’s total household income must fall below the following limits: Gross Annual Income Limits*
*Updated July 12, 2011. Subject to change annually. Applicants who meet the criteria will be served on a first-come, first-served basis after their applications are reviewed by the Community Development Office. For more information, call the office at (908) 541-5756.
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