Fist Time HomeBuyer Program - NJ

[EaglesFan2006]

Hello,

Happily I got pre-approvals for the 3 places I applied through this week, including one that has a New Jersey First Time Home Buyer program...basically it says you would get $10,000 toward down payment/closing costs in the way of a secondary loan.  I was wondering if anyone had more insight on exactly the way this works.  Mainly, would this mean that I would have an additional $10,000 at the table to apply toward those costs?

Thanks!

[NC_Mtg_Loaner]

Double check with the Provider of those funds, but typically these Down Payment Assistance programs are provided through public bond sales and referendums.   

Those that participate in the program receive higher rates on their loans in most cases and these funds are often subject to a Recapture Tax in the event that you refinance or sell the home before the "silent second" mortgage loan is forgiven.  

The cost of these funds is expensive so be sure that  your "need" justifies paying more for your home over the life of your loan.