The Police and Fireman’s Retirement System (PFRS) NJ Home Mortgage Loan Program

Members of the Police and Fireman’s Retirement System may be eligible for a NJ home mortgage under the Police and Firemen’s Retirement System Mortgage Loan Program.

Who Qualifies for the PFRS NJ Home Mortgage Loan Program?

In order to qualify for the PRFS NJ home mortgage, a member must be actively employed in a PFRS eligible title, with at least one year of creditable service. The Police and Firemen’s Retirement System provide the funding for the program, but the New Jersey Housing and Mortgage Finance Agency (NJHMFA) administer it. In addition, the Police and Firemen’s Retirement System NJ home mortgage loan program is administered through private area lenders approved by the NJHMFA.

Highlights of PFRS NJ Home Mortgage Loan Program

• The NJ home mortgage interest rate is set twice a year – in February and August. The current rate is available by calling 1-800-NJ House. The rate is based on the ten-year Treasury bill plus one percent. There is the possibility of additional fees.
• This type of NJ home mortgage is a 30-year fixed-rate mortgage.
• These NJ home mortgages are available with zero points.
• The maximum NJ home mortgage amount available for a member to borrow is currently $417,000.
• These NJ home mortgages are available for new or existing one or two-family residences and condominium units in New Jersey.
• These NJ home mortgages are also available for vacant land, provided there is a contract to construct a one or two-family dwelling.
• The member applying for the NJ home mortgage does not have to be a first-time buyer.
• These loans, however, cannot be used for refinancing current NJ home mortgages.
• No second mortgages are permitted.
• Homeowners must occupy the home as their principal residence within 120 days of closing, and the homeowner must remain in the residence for the life of the home mortgage.
• These home mortgages are available through area lenders that participate in the program.
• Mortgage insurance is required on all home mortgages with down payments of less than 20%.

Fees and Closing Costs of the PFRS NJ Home Mortgage Loan Program

• Fees: Applicants will be required to pay a standard non-refundable application fee and a flat fee of not more than $1,500 ($750 of which must be paid at the time of the application). The balance of the flat fee is to be paid at the closing of the NJ home mortgage. If the loan closes successfully, the administrator of the funds, HMFA, is to be paid $325 making the borrower’s total costs $1,825 – not including closing costs. The fee at the time of the application is not refundable unless the lender for underwriting reasons denies the loan. In addition, the borrower will pay a flat monthly charge of $30 per month as a servicing fee. After three years on the 37th month, the fee is reduced to $18 per month. The servicing fee will be directly added on the to NJ home mortgage payment.
• Closing Costs: Borrowers are responsible for all closing costs in addition to the application fees. Under certain circumstances closing costs may be rolled into the NJ home mortgage.