Program Eligibility

• Reside or work on Bergen County
• If filed for bankruptcy, must be discharged 5 years with established credit
• Not have owned a house in the past three years
• A household must have an income within the low/moderate income range for Bergen County
• Total income must be used to qualify for the program and will include from all sources, for all members of the household, who are over the age of eighteen

Program Information

The home must be a one-family house or condominium. No multi-family (two or more) houses or co-ops.

The purchase must not exceed 95% of the County's median sale price  (currently $406,000).

The home must be your primary residence and must be used for residential purposes only.

In determining the amount of any assistance the program requires that all reasonable available assets of applicant be applied towards the down payment.

Applicants must qualify for a mortgage. The mortgage shall be for the maximum amount the household can afford with an idel debt to income ratio being 33.38.

A Program Agreement must be signed verifying your knowledge and understanding of program requirements.

How much can you spend on the purchase of a home

That will be determined by several factors: i.e., credit history, income, debt, and down payment amount.

Each family will be different, even if they have the same incomes, the factors cited above will make the difference in the amount of the first mortgage they receive. The amount of the down payment they have will also be a determining factor.

The program provides a 0% deferred second mortgage allows up to $50,000 of HOME Program funds which are paid back upon sale of housing, transfer of title or the home no longer is your primary residence. Additionally, CDBG funds of up to $10,000 in matching down payment assistance are available to eligible applicants. These matching funds (CDBG) are forgiven 1/10th per year for 10 years, after 10 years these funds become a grant.

We can also make available an additional $2,500 towards closing costs, if needed.

As an example, the maximum house price a family of (3) can afford having $10,000 down payment and qualifying for a first mortgage of $175,000 as indicated below:

Upon determination of American Dream eligibility and completion of required housing counseling education classes participants will be partnered with an American Dream participating/approved conventional lender and complete a mortgage application. The lender will then determine your first mortgage amount and provide you with a commitment letter that you will submit to the American Dream Program coordinator so that a maximum purchase price can be determined. Upon the successful negotiation of a "Contract for Sale" an underwriting worksheet is completed to determine final subsidy amounts.

During attorney review process all required housing inspections will be completed to ensure compliance with necessary housing quality standards and all lead based paint requirements.

Be advised we cannot unduly enrich a family. All reasonable assets must be used towards the purchase of a home. A family will be allowed to keep a dollar amount equal to three months mortgage payments in reserve.

All loans are subject to County and Federal laws, rules, regulations and program requirements. Loans are also subject to the availability of program funds.

For more information and an application, Email, call or write:
Phone (201) 336-7200

Participants

TD Bank
Bogota Savings Bank
Clifton Savings Bank
Mariners Bank
Met Life Home Loans
Lakeland Bank
NVE Bank
Oritani Bank
Saddle River Valley Bank
Spencer Savings Bank

and the community support of
Fair Housing Council of Norther New Jersey