1-800-NJ-HOUSE • njhousing.gov
PROGRAM DESCRIPTION
This program is currently available for purchase transactions only. Loans are originated through
private participating lenders who have the necessary information to answer questions on the program.
For a list of participating lenders, refer to the NJHMFA participating lender list at
njhousing.gov/homeownership/buyers/lenders/
Terms: Please call a participating lender for current rate. Rates are set twice a year in February and August.
Rate is based on the 10-year Treasury bill plus 1%.
ELIGIBLE BORROWER
Any currently employed police ocer or firefighter, as defined
in the enabling legislation, who is a member of the Police and
Firemen’s Retirement System with at least one year creditable
service. While there is no first-time homebuyer requirement,
at least 25% of the funds will be for first-time homebuyers.
ELIGIBLE PROPERTIES
One- or two-family residences and condominium units located
in the state of New Jersey. Vacant land, provided a contract
is executed, used to construct an eligible one- or two-family
dwelling that will be habitable by the borrower as their
primary residence within 120 days of closing.
OCCUPANCY REQUIREMENT
Borrower must occupy the residence as their principal residence
within 120 days of closing and remain in the residence for the
life of the loan.
MAXIMUM LOAN TO VALUE (LTV)
The maximum LTV is 85%.
MAXIMUM MORTGAGE
The maximum mortgage amount as determined by
Fannie Mae (excluding high balance and jumbo loans).
MORTGAGE INSURANCE
Mortgage insurance is required on all loans with
downpayments of less than 20%.
SECOND MORTGAGES
Second mortgages will be permitted on purchase money
mortgages as follows:
• Loans can be originated with an 80% LTV first mortgage
and a combination of downpayment and second
mortgage financing equal to 20% of the sales price.
Second mortgages must not exceed 15% of the LTV.
FEES
Applicants are required to pay a fee of $1,500 to the mortgage
lender. Up to $750 of this fee may be collected at the time of
application, and the remaining balance of the fee must be paid
at closing. Any amount of this fee paid at the time of application
is not refundable, unless the loan is denied by the lender for
underwriting reasons. At closing, applicants will also pay $325 to
NJHMFA, the administrator of the program. These program fees
are in addition to the closing costs, escrows and any applicable
prepaid taxes and insurance costs associated with the loan.
Borrowers will pay a flat monthly charge of $30 per month
as a servicing fee. The servicing fee will be included as part
of the monthly mortgage payment. PFRSNJ and NJHMFA
reserve the right to adjust these charges to cover the costs
of administering the program and servicing the loan.
CLOSING COSTS
Borrowers are responsible for all closing costs in addition
to the application fees.
Updated 3.01.23
NJJHMFA
Police and Firemen’s Retirement System
Mortgage Program
NOTICE TO APPLICANTS
The State Treasurer has obtained and is relying on an opinion
from tax counsel that there is an adequate basis, in accordance
with prevailing guidelines, to conclude that it is reasonable for
the Police and Firemen’s Retirement System to take the position
that mortgages issued under this program should
not be treated as taxable distributions. If it is ultimately
determined that these mortgages are taxable distributions,
you could be required to pay tax on the mortgage proceeds
as well as penalties. We suggest you consider consulting
your own tax advisor before submitting your application.
