- is a subprime mortgage
- the home loan is an interest-only mortgage with a future interest reset rate scheduled
- the mortgage contains a negative amortization schedule
- contains a “pick a payment” plan or a payment option plan
- has a reset mortgage interest rate that increases the interest rate over time
- contains prepayment penalties
Forms of assistance offered by the New Jersey Mortgage Assistance Pilot (MAP)
The amount of help provided is extensive. All housing assistance provided shall be in the form of a loan offered to the homeowner that is secured by a mortgage that may take any lien position on the applicants home.
The terms of this home loan provided to applicants include the loan shall require no monthly payments on behalf of the applicant. The full principal amount shall be due on the home loan and it shall be payable upon the sale or upon the cash-out refinance of the home or the loan will be due upon the transfer of the home or if the applicant ceases to occupy the property as his/her primary residence.
The maximum mortgage loan amount that is offered by the program shall be $20,000.
The interest rate is zero percent. The mortgage loan offered by the NJ MAP program shall carry a zero-percent (0%) interest rate.
If you apply and are approved, the applicant may receive financial assistance covering a temporary period not to exceed six months of duration.
In addition, the program requires that people have access to programs and assistance for to ensure they have long term success. So applicants must participate in a debt reduction and/or budget counseling session that is approved by the State of New Jersey Housing and Mortgage Finance Agency.
Call the New Jersey agency at 609-278-7400 to apply for help.