The City of Newark is accepting applications for their inaugural First-Time Homebuyer Program. The requirements include that a person who is looking to become a first-time homebuyer and has an Average Median Income (AMI) of 120% or less. The combined AMI for a family of four living in Newark has to be less than $186,850.
The city is working on the program with Hello Housing, a nonprofit with experience creating First-Time Homebuyer programs. They help first-time homebuyers every step of the way, including the review of loan documents and ensuring the first mortgage loan meets the city’s affordable housing program requirements.
The city plans to spend $3 million dollars for the program in down-payment assistance loans, which will come from the city’s Housing Impact Fee Fund. The fund will have $26 million left to spend on the city’s housing goals.
At least 15 people will become first-time homebuyers under the program. Up to $150,000 of down-payment assistance loans will go towards people making less than the AMI, and $200,000 will go towards households that make up to 120% of the AMI.
The city plans to spend $3 million dollars for the program in down-payment assistance loans, which will come from the city’s Housing Impact Fee Fund. The fund will have $26 million left to spend on the city’s housing goals.
Interested households should contact the city to fill out a pre-application. The city said the program will be heavily advertised through social media, the city website and flyers. Applications can be filled out in-person or on Hello Housing’s website.
Once a person is eligible they are invited to attend a mandatory application workshop, where they are placed in a lottery. Lottery applicants then have to fill out a longer application, with assistance from Hello Housing.
Hello Housing CEO Jennifer Duffy said there will be two lottery groups. The first is a local preference pool for people who live or work in Newark—including those who have been displaced from Newark. The second lottery pool is a general lottery. The lottery is done through an Excel formula that randomizes everyone’s “lottery number,” which is then ranked based on which randomized number was pulled first.
Lottery winners have 120 days to find a home within city limits. Applicants can shop for single family houses, condos or townhomes.
