Financing an Affordable Home

We do not provide financing for affordable homes. It is up to each applicant to arrange for their own financing.

When purchasing a unit, a written pre-approval from a financial organization is required that states the amount they are willing to lend you. The letter MUST say Pre-Approved. Please make sure you tell your lender you are applying for a deed-restricted, affordable housing unit. Make sure they are aware there are liens that go with these affordable properties. In the pre-approval letter, the lender must state their understanding that they would be in 1st position and that there are other legal instruments that would be recorded in 2nd position at closing. In addition, we have not seen purchasers of these types of affordable homes be successful in obtaining an FHA loan. Please discuss these issues with your lender.

IMPORTANT NOTE ABOUT FINANCING: When purchasing an affordable home, the Regulations now require that, if the estimated monthly housing cost for the unit (including principal, interest, taxes, homeowner and private mortgage insurance and condominium or homeowner association fees as applicable) exceeds 33 percent of the Borrower’s eligible monthly income, the Borrower must receive counseling on the advisability of the loan transaction by a non-profit Credit Counseling Services approved by HUD or the New Jersey Department of Banking and Insurance.

Information regarding Predatory Lending practices is available at the New Jersey Department of Banking and Insurance.

Information regarding mortgage programs can be found at the New Jersey Housing and Mortgage Finance Agency.

IMPORTANT: All of the information contained on this site is provided as a courtesy to those seeking an affordable home. Piazza & Associates, Inc. is not responsible for any offers or errors contained herein.