NJ has a loan program especially for Police and Firefighters

Did you know you can get a special rate loan to buy a house if you are a Police officer or Firefighter?

Patrick Rumore

10/1/20221 min read

Read below for more info! If you need more information, I can give you a list of participating lenders you can contact for even more information.


Any currently employed police officer or firefighter, as defined in the enabling legislation, who is a member of the Police and Firemen’s Retirement System with at least one year creditable service. While there is no first-time homebuyer requirement, at least 25% of the funds will be for first-time homebuyers.


One- or two-family residences and condominium units located in the state of New Jersey. Vacant land, provided a contract is executed, used to construct an eligible one- or two-family dwelling that will be habitable by the borrower as their primary residence within 120 days of closing.


Borrower must occupy the residence as their principal residence within 120 days of closing and remain in the residence for the life of the loan.


The maximum mortgage amount as determined by Fannie Mae (excluding jumbo loans).


Mortgage insurance is required on all loans with downpayments of less than 20


Second mortgages will be permitted on purchase money mortgages as follows: • Loans can be originated with an 80% LTV first mortgage and a combination of downpayment and second mortgage financing equal to 20% of the sales price. Second mortgages must not exceed 15% of the LTV.


Applicants are required to pay a fee of $1,500 to the mortgage lender. Up to $750 of this fee may be collected at the time of application, and the remaining balance of the fee must be paid at closing. Any amount of this fee paid at the time of application is not refundable, unless the loan is denied by the lender for underwriting reasons. At closing, applicants will also pay $325 to NJHMFA, the administrator of the program. These program fees are in addition to the closing costs, escrows and any applicable prepaid taxes and insurance costs associated with the loan.

Borrowers will pay a flat monthly charge of $30 per month as a servicing fee. The servicing fee will be included as part of the monthly mortgage payment. PFRSNJ and NJHMFA reserve the right to adjust these charges to cover the costs of administering the program and servicing the loan.


Borrowers are responsible for all closing costs in addition to the application fees.