Homebuyer Down Payment Assistance Program

This Program is intended as a means of stabilizing property values and overall quality of life in targeted neighborhoods throughout the County. The major objective is to increase the supply of affordable housing for low and moderate income families. The goal of this program is to help Gloucester County residents achieve their dream of homeownership.   

By providing assistance with down payment and closing costs, Gloucester County enables low-income applicants to qualify for a mortgage in addition to:

  • Increase the supply of affordable housing for families for an extended period of time,
  • Stabilize property values and create a balance between rental and ownership housing stock in certain neighborhoods
  • Help renters who have steady incomes but cannot make the leap to ownership because they lack the needed lump sum to cover closing and down payment costs.

Eligible Borrowers:
Any low-moderate income household may be considered for this program that does not exceed 80% the median income adjusted for family size at the time of purchase. A household are all persons living in the home regardless of blood relation, marriage or other circumstance.  See link below for current income limits.

  • Any low-moderate income household that has not owned a home in the past three (3) years (except with issues related to health, safety and welfare of a family as reviewed on a case-by-case basis, i.e., displaced homemakers and loss of primary residence due to natural disaster). 
  • minimum 3% personal financial investment (See application for specific guidelines)
  • The applicant must complete a minimum of an (8) eight hour HUD approved Home Buyer Education course.  See link below to find a HUD approved counselor /agency

Eligible Properties:
HOME funds may be used for one-to-four-unit properties that are previously or publicly owned.  A variety of housing types are eligible, including:

  • Single-family (one unit) homes
  • Manufactured housing 
  • Condominium units in a single-family or multifamily building and
  • The unit must be located within Gloucester County. 

Assistance through this program provides zero percent (0%) deferred payment loans up to $10,000 that will be applied first to closing costs and the balance to down-payment assistance. A mortgage and Deed Restriction will be placed on the acquired property.  The present restriction on affordability is as follows:

5 year affordability period requiring full payment of the County funds should the household sell, transfer, refinance, obtain a reverse mortgage or utilize any vehicle to obtain cash against the equity of the property within the first 5 years. There is an extended period of affordability where 1/5 of the affordability subsidy will be forgiven for the next 4 year period. The County will require 1/5 repayment should the owner transfer, sell, refinance obtain a reverse mortgage or utilize any vehicle to obtain cash against the equity of the property.

Further explanation of these criteria are outlined in the application.  Please contact the office prior to executing a sales agreement to ensure availability of funds and reasonable time for review to align with an anticipated settlement date.  Failure to communicate with this office may impact required processing time to accommodate your closing date.


FY2020 Income Limits

Down-payment Assistance Application

HUD Approved Counselors 

For more information:

Christina Velázquez, Supervising Program Development Specialist
Gloucester County Planning Department
Housing and Community Development

1200 N. Delsea Drive, Building E
Clayton, NJ 08312
(856) 307-6650
(856) 307-6656 FAX
cvelazquez@co.gloucester.nj.us