Ocean County and Monmouth County, NJ First Time Home Buyers that utilize a NJ FHA mortgage may also be eligible to use the $8,000 First Time Home Buyer Tax Credit as part of their down payment at closing.

Key points about the announcement:

• Home Buyers must still have 3.5% of the down payment from their own funds.  Use of the tax credit is in addition to not in place of the minimum 3.5% down payment required for an FHA Loan.
• The tax credit advance, when combined with the FHA-insured first mortgage may not result in cash back to the buyer. 
• The tax credit may not exceed the anticipated credit due to the home buyer based on the computations on form IRS 5405.
• Lenders must review the homebuyer’s credit report to ensure there are no unpaid student loans, or other obligations that could be offset against the credit.

In order to obtain funds for the down payment home buyers in NJ may use the state's Smart Start Down Payment Assistance program which is only offered through state approved lenders.  This program offers up to 4% of the first mortgage amount for the down payment and actually quailfies as the buyers 3.5% minimum down payment.  The combination of this assitance along with the advance of the tax credit will allow home buyers to close on their home with little or no money out of their pocket.

These options are not the only ones available for renters to stop paying their landlords mortgage.  USDA and VA loans allow for 100% financing and when combined with a sellers concession lets a buyer close with little or no money out of their pocket.

The best way to to make sure you close on your mortgage by Novemeber 30th when the tax credit expires is to  Be Prepared  and get Pre-qualified-this will make the entire home buying process move along much smoother.