East Orange Program Gives Financial Boost To First-Time Homebuyers

EAST ORANGE, NJ — A city program in East Orange is helping local residents to become “first-time homeowners” by giving them a financial boost of up to $25,000.

The East Orange HOMEbuyers Purchase Program assists low-income or very low-income households with bridging the financial gap of the primary loan. Learn more about the program here.

Eligible applicants can get deferred payment loans that they can put to use in several ways, including down payments, closing costs, essential home repairs or interest/mortgage buy down.

At minimum, participants in the program get $1,000 per dwelling unit. The maximum levels of assistance depend on the purchase price of their home. For homes purchased at $50,000 or below, up to $5,000 is available. For homes between $50,000 and $100,000, the upper limit is $10,000. And for homes purchased at $100,000 or above, the maximum is $25,000.

Prospective homebuyers must meet several requirements to be eligible for HOME funds:

• Be a first-time homebuyer (meaning not having owned a home in the last three years)
• Be a qualified low-income or very low-income household
• Be the owner of the property after purchase
• Occupy the property as their principal residence after the purchase
• Attend HUD-certified housing counseling certificate classes offered locally, and be committed to post-purchase counseling

In addition:

• The applicant must contribute 1.5% of the total mortgage towards down payment
• The applicant must have two months of future mortgage payments secured in the bank
• Major systems in the home (roof, furnace, etc.) must have at least a five-year life expectancy at the time of purchase

According to city officials, the prospective homebuyer's household must have an annual income equal to or less than 80 percent of the median income for the target area. As of June 2021, the maximum income levels were:

• 1 person - $55,950
• 2 people - $63,950
• 3 people – $71,950
• 4 people - $79,900
• 5 people - $86,300
• 6 people - $92,700
• 7 people - $99,100
• 8 people - $105,500

Eligible properties include single-family homes, two or four-unit properties, condos, manufactured homes and cooperative units. They must be located in the city of East Orange.

If the property is resold or the title is transferred, the full amount of the loan is due at zero percent interest.

Want to learn more? Check out the below resources:

• Homebuyer' s Purchase Program Manual Summary(PDF)
• First Time Homebuyers Program Info (PDF)

CITY WORKSHOPS

The city has been holding a series of monthly virtual workshops for first-time homebuyers, which includes information about the East Orange HOMEbuyers Purchase Program.

"Purchasing a first home is a major financial commitment, and for many, the fulfillment of a lifelong dream," Mayor Ted Green said.

"Through these workshops, we want to connect our aspiring homeowners with experienced professionals and financial resources that will ease the transition to homeownership and help build a foundation for sustainable wealth," Green said.

The next workshop is scheduled for Wednesday, May 25 at 6 p.m. It will take place via Zoom; register online here.

Future workshops will take place on July 27, Sept. 28 and Nov. 30. For more information, contact lynn.white@eastorange-nj.gov, or rana.pullins@eastorange-nj.gov, or call 973-266-5411, ext. 5412.

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