State Officials and REALTOR® Group Discuss Fixes for N.J. Real Estate Market
Dept. of Community Affairs and N.J. Association of REALTORS® present update on market, solutions for improving it
Trenton, NJ – June 23, 2009 – (RealEstateRama) – Officials from the New Jersey Department of Community Affairs (DCA) and the New Jersey Association of REALTORS® (NJAR®) today said the state has enormously important housing incentives available to first-time home buyers and that the programs are helping to invigorate New Jersey’s housing market.
“The president’s $8,000 tax credit for first-time home buyers and the HMFA’s program to expedite the delivery of that credit are combining to help families from across the state to purchase their first homes,” said DCA Commissioner Joseph V. Doria Jr.
“This is a hugely powerful program that allows first time purchasers to take immediate advantage of the president’s tax credit so they can meet down payment requirements or pay the upfront closing costs that can otherwise be an impediment,” Doria said.
“Affordability is higher than it has been in years, thanks to the lower home prices and record-low interest rates, and appealing opportunities are out there for financially secure buyers,” said Jarrod C. Grasso, executive vice president for NJAR®. “In the first quarter of 2009, 56 percent of households in New Jersey could afford to buy an entry level home.”
“Consumers are responding. New Jersey REALTORS® have clearly seen an uptick in buyer activity as the spring home buying season is moving into the summer months. Affordability, tax credits and consumer education programs are certainly playing a part,” Grasso said.
“In these difficult economic times, when people are hearing mixed messages about how and where to invest, it is crucial for the industry and the state to be proactive in educating people about these opportunities,” he added. “To receive the tax credit you must close on your new home before November 30, so buyers have only a few months to find a home, negotiate a contract, secure a mortgage and close the deal.”
NJAR® is working to educate the public about the first-time home buyer tax credit, the HMFA Pre-fund Loan Program, and the realities of buying a home in today’s market through an awareness campaign called Get the Real Story®. The campaign includes free informational events around the state, webinars, an educational Web site with testimonials from people who have had success in the market, and ads to raise awareness of the market’s opportunities.
The Housing Mortgage Finance Agency (HMFA), an agency of the Department of Community Affairs, has several programs already in place to help New Jersey residents purchase homes. Those programs include the first-time home buyer Prefund program, Smart Start, and Live Where You Work.
NJAR® and DCA officials emphasized the importance of first-time buyers in the current market. A federal tax credit of up to $8,000 is available for those purchasing a home for the first time. They underscored the advantage of tapping into the HMFA program to expedite the cash value of the tax credit.
“Consumers can get immediate access to $5,000 of the tax credit under our program. Having this kind of money, in had at closing time, can relieve enormous pressure on a first-time home buyer,” Doria said.
“This program will make homeownership affordable to many New Jerseyans,” said HMFA Executive Director Marge DellaVecchia. “By taking advantage of this unique opportunity to receive the federal tax credit immediately and use it, together with an HMFA mortgage and other down payment and closing cost assistance, homebuyers can bring the cash needed to the table to purchase their homes. There continues to be a strong demand for housing and this program helps make it a reality for many New Jersey residents.”
“Closing costs and down payment money can sometimes put a dream home out of reach. This program adds some real power and punch to the federal tax credit,” Grasso said.
“This program is an extension of the efforts put into place by President Obama and Governor Corzine to stimulate the economy. Simply put, our programs will allow New Jersey residents a greater opportunity to own a piece of the American Dream,” Doria said.
The prefund loan must be paid back by June 30, 2010, and must be used for down payment and/or closing costs in conjunction with an HMFA mortgage or loan. Homebuyers may also combine the Prefund loan with the HMFA’s Smart Start program, which can offer people further assistance with their down payment and closing costs.
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For media inquiries contact:
Lauren Castellano
Media Coordinator
Phone: (732) 494-4709
Fax: (732) 404-8130
E-mail: lcastellano (at) njar (dot) com
For legislative related media inquiries contact:
Danielle Alpert
Government Relations Coordinator
Phone: (732) 494-4730
Fax: (732) 404-8127
E-mail: dalpert (at) njar (dot) com
