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Legislation was recently passed amending our First-Generation Homebuyer definition. The definition now expands the foster care element of eligibility to include former emancipated youths and those federally designated as homeless, unaccompanied minors. Please see below for the full updated definition.
For purposes of the Smart Start Plus First-Generation Program, "First-generation homebuyer" means a first-time homebuyer, who is:
1. an individual:
(1) whose parents or legal guardians do not have any present ownership interest in any residential real property in any state or territory of the United States, or outside of the United States;
AND
(2) whose spouse, or domestic partner has not, during the three-year period ending upon acquisition of the eligible home to be acquired using such assistance, had any present ownership interest in any residential real property used as their principal residence in any state or territory of the United States, or outside of the United States;
OR
2. an individual who has at any time been placed in foster care in the State, was an emancipated youth, or was designated as a homeless, unaccompanied youth pursuant to the “McKinney-Vento Homeless Assistance Act,” as described in 42 U.S.C. s.11434a.
NJHMFA will allow a transition period for September where either version of the First Generation Borrower’s Affidavit may be used. The updated First-Generation Borrower’s Affidavit will be required for all new reservations beginning October 1, 2024. Additionally, any reservation prior to October 1st, 2024 that is relying on the new expanded eligibility must use the new version of the affidavit.
The updated First-Generation Borrower’s Affidavit is available in the Lender Portal and on the website under Lender Resources. The loan will not be assigned to an Underwriter without the executed and notarized Affidavit. Please submit the affidavit at the time of Underwriting Submission to avoid delays.
The amended First-Generation Homebuyer definition has been updated in the Seller’s Guide.
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