HomeFundIt in Garfield, NJ
Get up to 6% down payment assistance with 10-year forgiveness. Reduce your out-of-pocket costs and achieve homeownership faster.
What is HomeFundIt?
HomeFundIt is a down payment assistance program that provides eligible homebuyers with up to 6% of the purchase price to help with their down payment. In Garfield, where the median home price is $425,000, this means up to $25,500 in assistance.
The assistance is provided as a subordinate lien (second mortgage) that is forgiven over 10 years if you remain in the home. This makes homeownership more affordable and accessible, especially for first-time buyers who struggle to save for a large down payment.
HomeFundIt works with FHA, VA, Conventional, and USDA loans, making it a flexible option for buyers in Bergen County.
How HomeFundIt Works
Apply for Loan
Apply for your primary mortgage (FHA, VA, Conventional, or USDA) through CMG Home Loans.
Get Approved
Qualify for HomeFundIt assistance (up to 6% of purchase price) based on income and program requirements.
Close on Home
HomeFundIt funds are applied at closing as a subordinate lien. You provide minimum down payment (e.g., 3.5% FHA).
Stay 10 Years
Stay in the home for 10 years and the entire assistance amount is forgiven. Sell earlier? Repay unforgiven portion.
Down Payment Assistance Examples in Garfield
10-Year Forgiveness Timeline
The HomeFundIt assistance is forgiven at 10% per year. Stay in your home for the full 10 years and owe nothing.
Example: $25,500 Assistance
HomeFundIt Features & Benefits
Reduce Upfront Costs
Get up to 6% assistance to reduce your out-of-pocket costs at closing. Combined with a 3.5% FHA loan, you can achieve homeownership with less savings required.
10-Year Forgiveness
The assistance is forgiven at 10% per year. Stay in your home for 10 years and the entire amount is forgiven - you never have to repay it.
Works with Multiple Loan Types
HomeFundIt can be combined with FHA (3.5% down), VA (0% down), Conventional (3-5% down), and USDA (0% down) loans for maximum flexibility.
Primary Residence Only
The property must be your primary residence. This ensures the program helps families achieve sustainable homeownership in Bergen County.
Eligibility Requirements
Income Requirements
- Income limits typically 80-120% of area median income
- Stable employment and income verification required
- First-time homebuyers often prioritized
- Some programs allow repeat buyers
Property & Loan Requirements
- Property must be primary residence
- HUD-approved homebuyer education course required
- Eligible property types: 1-4 unit homes, condos, townhomes
- Credit and debt-to-income requirements of primary loan apply
HomeFundIt + FHA vs. Other Options
| Feature | HomeFundIt + FHA | FHA Alone | Conventional (5% down) |
|---|---|---|---|
| Down Payment Assistance | Up to 6% | None | None |
| Your Minimum Down | 3.5% | 3.5% | 5% |
| Total Down Payment ($425,000 home) | $40,375 | $14,875 | $21,250 |
| Your Out-of-Pocket | $14,875 | $14,875 | $21,250 |
| Assistance Forgiveness | 10 years | N/A | N/A |
| Mortgage Insurance | FHA MIP (Life of loan) | FHA MIP (Life of loan) | PMI (Until 20% equity) |
| Credit Score Minimum | 580 | 580 | 620 |
| Income Limits | Apply | None | None |
Frequently Asked Questions
How much down payment assistance can I get with HomeFundIt in Garfield?
In Garfield, HomeFundIt provides up to 6% of the purchase price in down payment assistance. For the median $425,000 home, that's up to $25,500 in assistance. The assistance is provided as a subordinate lien (second mortgage) that is forgiven after 10 years if you remain in the home.
How does the 10-year forgiveness work with HomeFundIt?
HomeFundIt assistance is forgiven on a prorated basis over 10 years. Each year you stay in the home, 10% of the assistance is forgiven. After Year 1: 10% forgiven, Year 5: 50% forgiven, Year 10: 100% forgiven. If you sell or refinance before 10 years, you repay the remaining unforgiven portion.
What happens if I sell my home before 10 years?
If you sell or refinance before 10 years, you must repay the unforgiven portion of the HomeFundIt assistance. For example, if you sell after 5 years, 50% has been forgiven, so you'd repay the remaining 50%. The repayment comes from your home sale proceeds.
What types of loans can HomeFundIt be combined with?
HomeFundIt can be combined with FHA loans (3.5% down), VA loans (0% down), Conventional loans (typically 3-5% down), and USDA loans (0% down). The HomeFundIt assistance reduces your out-of-pocket costs at closing while still meeting minimum down payment requirements.
Are there income limits for HomeFundIt in New Jersey?
Yes, HomeFundIt programs typically have income limits that vary by area and program. Income limits are usually set at 80-120% of area median income. First-time homebuyers are often prioritized, though some programs allow repeat buyers. Contact Jimmy Joseph MBA at (908) 698-0150 for current income limits in your area.
Do I still need my own down payment with HomeFundIt?
Yes, HomeFundIt provides additional assistance but doesn't eliminate your down payment requirement. For example, with an FHA loan you still need 3.5% down from your own funds, and HomeFundIt can add up to 6% more. This reduces your total out-of-pocket costs significantly.
Is homebuyer education required for HomeFundIt?
Yes, most HomeFundIt programs require completion of a HUD-approved homebuyer education course. This ensures you understand the homebuying process, responsibilities of homeownership, and the terms of your assistance. Many courses are available online and can be completed in 6-8 hours.
Ready to Get Started with HomeFundIt in Garfield?
Get expert guidance on down payment assistance programs. Call Jimmy Joseph MBA today for a free consultation.
Licensed Mortgage Loan Originator • NMLS #2310160 • Serving Bergen County since 2010