Income Limits

645 Centre Street is targeted at 1-4 person households making less than 80% of median income. The maximum combined household income is...

For 1-person households:
$49,419

For 2-person households:
$56,479

For 3-person households:
$63,539

For 4-person households:
$70,599

>>How to Apply

>>Overview

What is an Affordable Home?

An affordable home has been subsidized by the State of NJ under terms established by the Fair Housing Act, and is price-controlled to ensure that it can be purchased by low- or moderate-income buyers. 643-645 Second Street are targetted at moderate income buyers, i.e. families making 50-80% of regional median income. The 2009 maximum income limits are shown in the box to the left.

How do I buy?

Buying an Affordable Home is like buying any other home. You'll enter into a contract of sale, apply for a mortgage, and "close" the sale after you receive your mortgage commitment. The major difference is that before you can sign the contract, you'll need to be income-qualified by HHG (the developer) working with the NJ Housing Affordability Service. This will require you to fill out the "Eligibility Worksheet". Detailed instructions and a link to download the worksheet can be found here.

Do I need to make a down payment?

It depends. If you qualify for a FHA mortgage, you will need to make a 3.5% down payment. If you can qualify for a HMFA 1st Time Home Buyer's Mortgage, you may not need to make a down payment at all. In addition, if you qualify for a Federal Home Buyers tax credit, HMFA may lend you up to an additional $5,000 towards your closing costs (see below).

Can I get assistance for my down payment and closing costs?

With the HMFA mortgage, you may also qualify for "Smart Start", which can allow you to borrow up to an additional 4% towards closing costs. So, if you qualify, you may be able to purchase your affordable home with virtually no out of pocket cash.

I qualify now, but I'm expecting my income to increase. Is that a problem?

It's not a problem. At the time you purchase the home, you will need to prove that your income falls below the maximum limit. Once you own it, the home remains yours until you sell it, even if your income subsequently increases above the moderate income limit.

Can I make money selling my affordable home?

Yes. You can sell your home to qualified moderate income buyers, for a market price that is capped by a formula to ensure affordability. This fluctuates with incomes, taxes, and interest rates, but historically has increased over time as the median income in the Mercer County region has increased.

Do I have to repay the subsidy?

No. You never have to repay the subsidy.

Are there restrictions on how I can use my home?

The house must remain your principal place of residence. Generally, you're not allowed to rent out the unit, even to members of your own family, unless you apply for and receive a hardship waiver from the Housing Affordability Service. A hardship waiver might be granted if you have a temporary need to move away for reasons that are not your fault, such as an employer temporarily transferring you, or being called up for military service.