FIXED RATE RESIDENTIAL LOAN- URSB is offering fixed rate residential mortgage loans to applicants looking to buy a home in Middlesex and Monmouth County.

Mortgages, up to $625,000, for the purchase of your primary residence are available for a fixed interest rate for a 30-year term. The loan will include a reduced interest rate for applicants who meet low to moderate income qualifications and have their payments automatically deducted from a URSB checking account.

Eligible property types include single family homes, townhouses or condominiums, as well as 2 to 4 family dwellings. For 2-4 family properties, rents from the additional units can be included as income for qualification purposes.

URSB participates in two grant programs, the FHLB Homebuyers Dream Plus and NJ Community Capital Recoverable Grant programs, which provide funds for eligible down payment and closing costs to qualified applicants. Both programs require applicants to meet certain income qualifications based upon the Area Median Income (“AMI”), adjusted for household size. Availability of the grant programs is limited and will end when the grant funds are distributed.

The Area Median Income are published on the US Department of Housing and Urban Development’s website (https://shorthttps://ami-lookup-tool.fanniemae.com/url.at/3QzZO) to look up a specific property.

FHLB HOMEBUYER DREAM PLUS PROGRAM- The FHLB Homebuyer Dream Plus program provides grants up to $20,000 for down payment and closing costs, with $500 of the grant specifically allocated to the cost of homeownership counseling.

Grant funds may be applied toward:

• Loan origination and/or discount fee
• Appraisal and/or application fees
• Closing costs like title insurance
• Private Mortgage Insurance

Applicants must meet the following income/eligibility requirements for the grant program:

• Must meet the definition of “first-time homebuyer”, which includes: someone who has had no ownership in a principal residence during the previous 3-years; a single parent who has only owned a principal residence with a former spouse while married; an individual who is a displaced homemaker and has only owned a principal residence with a spouse, and; an individual who has only owned a principal residence not permanently affixed to a permanent foundation.
• Must have at least $1,000 of their own money to contribute toward the purchase of the property. Gifts from family members are considered an acceptable source of funds.
• Total household income must meet the following thresholds requirements as compared to Area Median Income (“AMI”) for the property location, adjusted for household size. In NJ, the household must earn over 80% of AMI but not exceed 120% AMI. Speak to a URSB Mortgage Loan Officer for more information.

NJ COMMUNITY CAPITAL RECOVERABLE GRANT PROGRAM- The NJ Community Capital Recoverable Grant Program provides grant funds between $10,000 and $30,000.

Eligibility requirements are:

• Income qualified at 100% of AMI or below adjusted for household size. This will include the income of all individuals who are on the first mortgage, purchase contract and deed.
• Must have the lesser of one escrowed mortgage payment or $2,000 of their own funds as of application date.
• Liquid assets remaining after closing cannot exceed $25,000
• Purchase price of the home cannot exceed $625,000
• ITIN holders are eligible.
• Applicants must enroll in the program at New Jersey Community Capital’s website Address Yourself Enrollment Form (Address Yourself Enrollment Form (tfaforms.net))

As this is a recoverable grant program, a Note and Second Mortgage will be prepared and executed at closing along with the first mortgage documents. Homeowners who sell the property or refinance the first mortgage with the first five years will be required to repay the grant funding. Forgiveness of the grant is prorated at a rate of 20% per year. The grant will be fully forgiven at the end of Year 5.