2024 ATLANTIC CITY FIRS
T
TIME HOMEBUYER
PRO
G
RAM
City of Atlantic City
Department of Planning and Development
Division of Community and Economic Development
City Hall, Room 510
1301 Bacharach Boulevard
Atlantic City, NJ 08401-4603
Lance T.Smith, MPA, MSL, Assistant Director
Community Development Block Grant (CDBG) and HOME Programs
(609) 347-5330
lsmith@cityofatlanticcity.org
Revised April 2024
PLEASE ATTACH COPIES OF THE FOLLOWING:
1. MORTGAGE PRE-QUALIFICATION LETTER
2. (4) CURRENT PA
Y STUBS- CONSECUTIVE
3. STATE INCOME TAX RETURNS WITH W-2 FORMS FOR TWO
MOST RECENT YEARS; FEDERAL TAX TRANSCRIPTS FOR TWO
MOST RECENT YEARS
4. BIRTH CERTIFICATES FOR HOUSEHOLD MEMBERS UNDER THE
AGE OF 18
5. PHOTO IDs and SOCIAL SECURITY CARDS FOR ALL ADULTS
6
. ACCOUNT STATEMENTS
– i.e., CHECKING, SAVINGS, CD’S,
MONEY MARKET FUNDS, MUTUAL FUNDS, ETC.
FOR A CONSECUTIVE (2) MONTH PERIOD -MO
ST CURRENT
7. CURRENT EXECUTED LEASE AGREEMENT -SHOWING AT
LEAST
1-YEAR RESIDENCY IN ATLANTIC CITY
8. TWO (2) CURRENT U
TILITY BILLS WITH RECEIPTS
NO APPLICATION WILL BE PROCESSED UNTIL ALL OF THE ABOVE ARE
SUBMITTED.
CITY OF ATLANTIC CITY
DEPARTMENT OF PLANNING & DEVELOPMENT
City Hall - Room 506
1301 Bacharach Boulevard
Atlantic City, NJ 08401-4603
(609) 347-5330 / Fax: (609) 347-5345
CITY OF ATLANTIC CITY
HOMEBUYER ASSISTANCE APPLICATION
FOR OFFICE USE
D
ate:______
Initials:_____
PLEASE PRINT OR TYPE INFORMATION
Applicant’s Name___________________________________________________________________
(First) (M) (Last)
Applicant’s Social Security Number: _________________ Sex:____ Date of Birth:________
Marital Status: ___ Residence Phone ____________________ Cell Phone _______________
Present Address:
_________________________________________________________
City:_____________________ State:_____ Zip Code:_____________
Email: _________________________________________________________________
Racial Description of Household (Select one or more)
__W
HITE __AMERICAN INDIAN/ALASKAN
_
_BLACK/AFRICAN AMERICAN __ NATIVE & BLACK/AFRICAN AMERICAN
_
_ASIAN __ASIAN & WHITE
__AMERICAN INDIAN/ALASKAN NATIVE __AMERICAN INDIAN/ALASKAN NATIVE & WHITE
__NATIVE HAWAIIAN/OTHER PACIFIC ISLANDER __OTHER MULTI-RACIAL
E
THNICITY (select one only) __Hispanic or Latino __Not Hispanic or Latino __White
H
ANDICAPPED/DISABLED:__ __AGE 62 OR OVER __RELATED TO A PUBLIC OFFICIAL
2
HOUSEHOLD COMPOSITON
#
MEMBER FULL NAME
RELATIONSHIP
BIRTH DATE
SEX
1
Head of
Household
2
3
4
5
6
7
EMPLOYMENT INFORMATION
Please name each household member who receives income and is 18 years old, or older. Income is
defined as the total salaries, wages, tips, public assistance, child support, alimony, social security,
pension, disability, earned interest, dividends, etc., before deductions, and taxes received by each
member of the household.
Social Security #__________________
Employer Address:________________
Position:_________________________
Self Employed:_____Income: $______
Social Security #__________________
Employer Address:________________
Position:_________________________
Self Employed:_____Income: $______
Social Security #__________________
Employer Address:________________
Position:_________________________
Self Employed:_____Income: $______
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INCOME INFORMATION
CALCULATE ALL GROSS INCOME on an annual basis for every household member who is 18 years or older.
Monthly income should be multiplied by 12, weekly by 52, and biweekly by 26 for total Gross Annual figure.
Income verification must be attached to this application, and available for review in your project file.
Please state the amount of income received from each applicable source:
Name____________________________ Name __________________________
Weekly
Monthly
Annually
Weekly
Monthly
Annually
Gross Salary or Wages
Alimony
Annuities
Child Support
Death Benefits
Disability Payment
Pension/Retirement Funds
Retirement Funds
Social Security
Tips/Commissions
Unemployment
Welfare
TOTAL ANNUAL INCOME
Name____________________________ Name __________________________
Weekly
Monthly
Annually
Weekly
Monthly
Annually
Gross Salary or Wages
Alimony
Annuities
Child Support
Death Benefits
Disability Payment
Pension
Retirement Funds
Social Security
Tips/Commissions
Unemployment
Welfare
TOTAL ANNUAL INCOME
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LIQUID ASSET DETAILS:
Please list all checking, and savings accounts including CD’S Money market Funds, Mutual Funds, and
other assets by financial institutions:
Financial Institution
Name & Address
Account #
Current Value
Annual Income
Do you own any other property? __Yes __No If Yes where: Lot___ Block__
Do You own a vacation home? __Yes __N
o
Do you own a business or other income-producing real estate? __Yes __No
Do you receive income(rent/receipts) from this asset? __Yes __No
How much is this Net Income monthly? $___________ Annually $___________
TOTAL ANNUAL INCOME FROM ASSETS, RENTS & BUSINESS RECEIPTS: $______________
CASH DEPOSIT for purchase: ___________________________
Held By: ____________________________________________
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REALTOR: _____
_______________________________________________________________________
Contact: _____________________________________________________________________________
Phone #: _________________________________ Fax #: ______________________________________
Address: _____________________________________________________________________________
MORTGAGE CO. /BANK CONTACT: ________________________________________________________
Contact: _____________________________________________________________________________
Phone #: _________________________________ Fax #: ______________________________________
Address: _____________________________________________________________________________
TITLE COMPANY CONTACT: ______________________________________________________________
Contact: _____________________________________________________________________________
Phone #: _________________________________ Fax #: ______________________________________
Address: _____________________________________________________________________________
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HOME BUYER CERTIFICATION
I, as head of the household, hereby certify to the following (Check all that apply):
___ I
have resided in Atlantic City for the last 12 months at:
__________________________________________________________
___ I
have been employed in Atlantic City for the last 12 months (Include letter from employer)
___ I
have NOT owned a home for the last three years.
___ I am NOT a municipal employee.
__________________________________
Name
PENALTY FOR FALSE OR FRAUDULENT STATEMENT: U.S.C., Title 18, Sec. 100 provides “Whoever in any
matter within the jurisdiction of any department of agency of the United States knowingly, and willfully
falsifies, or makes any false fictitious or fraudulent statement, or entry, shall be fined not more than
$10,000, or imprisoned not more than five years, or both”
I certify the information provided herein is true, and completed to the best of my knowledge, and
belief. I also understand that this information is to be used only for determining my eligibility for
services provided by the various State, and Federal programs, and any statistical analysis that may be
required for program evaluation.
X_______________________________________ X_____________________________
Signature Applicant
Date
X_______________________________________ X_____________________________
Signature Co - A
pplicant Date
AUTHORIZATION FOR RELEASE OF INFORMATION
I authorize the City of Atlantic City to make inquires as necessary to verify the accuracies of the
statements made above. I certify that the above statements are true, and accurate. These statements
are made for the purpose of obtaining down payment assistance from the City of Atlantic City for the
purchase of a home. I understand that FALSE statements may result in forfeiture of benefits, and
possible prosecution under applicable criminal codes of the United States and the State of New Jersey.
X
_______________________________________ X_____________________________
Signature Applicant
Date
X
_______________________________________ X_____________________________
Signature Co - A
pplicant Date
ATLANTIC CITY FIRST TIME HOMEBUYER PROGRAM
PROGRAM OBJECTIVE:
In order to increase affordable homeownership opportunities in Atlantic
City, the City of Atlantic City will use HOME Investment Partnership Program
funds to assist low-income, first-time homebuyers, with down-payment and/or
closing costs.
OVERVIEW:
The City of Atlantic City First Time Homebuyer program provides
qualified, first-time homebuyers with a zero-interest, forgivable loan to assist with
purchasing a home located within Atlantic City. The program offers a maximum
amount of $20,000 in assistance to cover the down payment on a home and
eligible closing costs. If the sales price of the home is less than $100,000, the
program offers a maximum amount of $10,000. If the sales price of the home is
more than $100,000, the maximum amount of assistance is $20,000. Persons
utilizing 100% cash for a home purchase are ineligible for this program.
Assistance may be increased on a case-by-case basis, as needed, by no more
than $5,000.00 to meet debt-to-income ratios outlined in the Primary Loan
Requirements section.
The First Time Homebuyer program will assist those families with
incomes at, or below, 80% of the median family income (MFI). If an Applicant
receives more than $20,000 in assistance, the loan is forgivable if the
homeowner remains in the home for a period of ten (10) years. If an Applicant
receives less than $20,000 in assistance, the loan is forgivable if the homeowner
remains in the home for a period of five (5) years. Twenty percent of the
assistance shall be forgiven each year the Applicant remains in the home. The
purpose is to keep the home affordable for low/moderate income buyers. Should
the homeowner sell, lease or transfer the property prior to the end of this five- or
ten-year period, then the loan shall be due and payable upon the sale, lease or
transfer of title.
ELIGIBLE APPLICANTS:
1. Persons who have resided in the City of Atlantic City for the last twelve
months;
2. Persons who have not owned a home for the last three (3) years;
3. Persons with an acceptable credit history and the ability to obtain an
approved mortgage; (Please note that the City of Atlantic City reserves the
right to reject mortgages that contain terms and/or conditions that conflict
with the goals of the program)
4. Persons with incomes below 80% of median family income.
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[SEE ATTACHED HUD INCOME LIMITS]
ELIGIBLE PROPERTIES:
1. Single-family properties, condominiums, and existing modular homes
located in the City of Atlantic City;
2. The sale price cannot exceed $209,000. The value of any
homebuyer/homeowner-occupied property may not exceed 95% of the
median purchase price for that type of single-family housing for the area,
as published by HUD, or as determined locally through market analysis.
The sales price of the HOME property to be acquired by a homebuyer
may not have a value that exceeds 95% of the area median purchase
price for that type of housing. Applicants must obtain a property
appraisal from an accredited appraisal firm.
3. The property must meet all requirements for an approved mortgage.
4. The property acquired must be decent, safe, sanitary, and in good repair
and otherwise meet all state and local housing quality standards and code
requirements. Any findings are to be corrected, reinspected and certified
prior to settlement.
PRIMARY LOAN REQUIREMENTS:
1. The primary mortgage loan must be a fixed interest rate – FHA, USDA, VA
or conventional mortgage loan. Adjustable interest rate loans, interest-only
loans, and loans with balloon payments are prohibited.
2. The primary mortgage term must be 30 years (360 months)
The primary loan “front-end ratio” cannot exceed 35%. The front-end ratio
is defined as the cost of the primary loan principal and interest, mortgage
insurance, real estate taxes, homeowners and flood insurance, and HOA
fees (if any) divided by the household income. The City, however, may
exercise the discretion to certify an applicant as eligible despite the fact
that the unit’s monthly housing cost would exceed the 35 percent level, if
the household obtains a firm mortgage loan commitment at a higher level
from a licensed financial institution, under terms consistent with the
requirements of the New Jersey Homeownership Security Act of 2002,
N.J.S.A. 46:10B-22 et seq., including certification from a non-profit
counselor approved by HUD that the borrower has received counseling on
the advisability of the loan transaction.
1. The “back-end ratio” cannot exceed 47%. The back-end ratio is defined as
the portion of the applicant household’s monthly income that goes toward
monthly debt payments.
UNDERWRTING:
The City will review the applicant’s proposed housing debt, overall household
debt, the appropriateness of the amount of assistance, recurring household
2
expenses, assets available to acquire the housing, monthly expenses of the
household, and financial resources available to the household to sustain
homeownership prior to awarding assistance.
Underwriting will be consistent with applicable sections of CPD-15-11.
FORM OF OWNERSHIP:
The HOME program requires ownership of the property using one of the
approved forms described below. Families or individuals own the property if:
1. They have fee simple title to the property;
2. They own a condominium;
3. They own, or have a membership, in a coop.
The ownership interest will be subject to the following:
1. Mortgages, deeds of trust or other debt instruments approved by the City
of Atlantic City;
2. Any other encumbrances or restrictions that do not impair the marketability
of the ownership interest.
PRINCIPAL RESIDENCE:
Purchasers must occupy the properties as their principal residence. A
deed restriction, or covenant running with the land, will incorporate this
requirement. The loan documents between the Lender and Buyer, as well as the
loan documents between the Purchaser and the City of Atlantic City will also
include this requirement.
AFFORDABILITY PERIOD:
The assisted properties will remain affordable for a period of five (5) or ten
(10) years depending on the amount of funding the Applicant receives for down
payment and/or closing costs.
PROGRAM FINANCING:
The program will provide a maximum amount of $20,000 - $25,000 to
eligible applicants to assist with down payment and/or closing costs, in
accordance with the rules and regulations of the HOME Investment Partnership
program, as cited in 24 C.F.R. 92.254.
RECAPTURE REQUIREMENTS:
All funds from this program are forgivable, non-amortizing, deferred
payment loans, subordinate to the first mortgage of the Lender. These loans will
be forgiven after five (5) or ten (10)) years, depending on the amount of funding
3
received by Applicant. These loans will be due and payable in full upon the sale,
transfer of title, or leasing of the property. These restrictions are required in order
to help preserve affordable housing in the City of Atlantic City.
The City of Atlantic City reserves the right to deny a request to
subordinate if it is deemed not to be in the best interest of the City of Atlantic
City. The City of Atlantic City will only subordinate for the purpose of refinancing
an existing mortgage and/or debt. No cash payout is permitted. Additionally, the
City of Atlantic City will not subordinate below second position. The property
must also be owner-occupied and all taxes must be current. The City of Atlantic
City’s City Council will review all requests and reserves the right to deny a
request if it is deemed not to be in the best interest of the City of Atlantic City.
PROGRAM PROCEDURE:
1. All Applicants must be prescreened by a Lender for a mortgage pre-
approval and good faith estimate of the amount of mortgage assistance
needed.
2. The Applicant must complete a HUD approved Homebuyer Counseling
and Education Program, also approved by the City of Atlantic City, prior to
settlement.
3. The bank/mortgage company representative will then contact the City of
Atlantic City HOME Program Coordinator to provide the information.
4. Potential recipients will then be contacted by the City of Atlantic City
HOME Program Coordinator to fill out an application.
5. If determined to be income-eligible for the program, a certification will be
issued.
6. At this point, the Applicant must be under a Contract of Sale for an eligible
property.
7. The Applicant then returns to the Lender to complete the necessary steps
for the mortgage, a final determination of the amount of mortgage
assistance and the preparation of the HUD-1 Settlement sheet by the
Lender/Title Company.
8. The City of Atlantic City HOME Program completes the underwriting of the
transaction to determine the amount of assistance the applicant is eligible
for.
9. Funds are disbursed accordingly at settlement.
LEAD SAFE HOUSING RULE:
It is requirement of this Program that all homes built prior to 1978 must be
inspected for compliance with the HUD Lead Safe Housing Rule. Specifically, a
lead-based paint visual assessment must be performed to identify both the
presence of lead-based paint and/or the location of lead-based paint hazards
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currently in the home. A lead-based paint Visual Assessment examines the
condition of the painted surfaces on the property. It must be conducted by a
certified Visual Assessor who documents if there is evidence of deteriorated paint
that exceeds the HUD de minimis (minimum) levels. The HUD de minimis levels
are calculated differently for interior and exterior paint. A visual assessment does
not determine the presence or absence of lead. If evidence of deteriorated paint
beyond the HUD de minimis levels is discovered, it must be stabilized before any
assistance can be approved. If a contractor is used for the paint stabilization, the
contractor must at least be RRP or Renovation, Repair, and Painting certified.
After the deteriorated paint is stabilized and any dust or paint chips have been
safely removed from the property, a lead-based paint clearance examination
must be conducted by a certified lead professional in each worksite or area
where the work was performed. If the deteriorated area did not exceed the HUD
de minimis levels, no clearance examination is required.
FOR MORE INFORMATION:
Please contact Triad Associates, the City’s Community Development
Consultant, at 856-690-7459 or at housing @triadincorporated.com
HUD Annual Income Guidelines 2024
Persons Per Household
1 Person 2 People 3 People 4 People 5 People 6 People
$54,900 $62,750 $70,600 $78,400 $84,700 $90,950