I,_______________________________and _________________________________ as
Purchaser(s) of the residence, the permanent financing of which will be provided by New Jersey Housing
and Mortgage Finance Agency ("NJHMFA"), being duly sworn on their oath represents and warrant as
1. The information in the Mortgage Loan application is true, accurate and complete.
2. The residence is located at ____________________________________________,
_________________County of New Jersey.
3. Acquisition Costs.
A) The Acquisition Cost of the residence is $________ ("Acquisition Cost" is defined to
mean the cost of acquiring a residence from the seller as a completed residential unit.
Included in the calculation of acquisition cost are (i) all amounts paid (in cash or in
kind) by or on behalf of the purchaser to or on behalf or the seller as consideration for
the residence, (ii) the reasonable cost (irrespective of the source of funding) of
completing an incomplete residential unit and (iii) the capitalized value (using a
discount rate equal to the bond yield) of ground rent where a residence is purchased
subject thereto. Excluded from the calculation of acquisition cost are (i) the usual and
reasonable settlement costs, including title and transfer costs, title insurance, survey
fees and other similar costs and (ii) the usual and reasonable financing costs, including
credit reference fees, legal fees, appraisal expenses, "points" paid by the purchasers
and other financing costs. "Usual and reasonable" costs include such costs only to the
extent they do not exceed functionally equivalent costs where financing is not provided
by a qualified mortgage bond issue. Also excluded from the calculation of acquisition
cost is the value of services performed by the mortgagor and certain family members
to complete the residence ("sweat equity") and the cost of land owned by the
mortgagor for at least two years prior to the date construction of the residence began.).
(I/We) hereby certify that a true and correct copy of the purchase contract for the
purchase of the residence and all other contracts expressed or implied relating to the
purchase or completion of the dwelling have been provided to the Mortgage Lender.
B) Neither (I/We) nor anyone on (my/our) behalf has made any payment other than the
amount indicated in 3A to the seller of the residence or to any other person on behalf
of the seller, nor have (I/We) canceled any debt of the seller or any related person to
the seller.
C) (I/We) have not entered into any agreement with the seller of the residence, the
developer, the contractor, or any other person pursuant to which any portion of the
residence has been left unfinished or any fixtures or other architectural appointments
have been omitted or removed from the residence in order to reduce the Acquisition
4. Gross Annualized Household Income. The total annualized current income of a mortgagor,
and any other person who is expected to both live in the residence being financed
$_______________. Total household number of people that will reside in the home:
5. The residence is considered "Real Property" which is either an existing single-family home, a
condominium unit, a townhome, manufactured or mobile home which is permanently affixed
to real property owned by the borrower, or a two-four family dwelling.
6. The residence is a (Check One)
___________ (A) Existing single-family home, a condominium unit, a townhome,
manufactured or mobile home which is permanently affixed to real
property owned by myself. Purchase Price at or below a maximum of
___________ (B) Existing two to four dwelling unit residence. Purchase Price at or below a
maximum of $559,854.00.
For purposes of the above, the term "existing residence" means units or dwellings which have been
previously occupied or used, as a residence.
7 (I/We) intend to occupy the residence as (my/our) principal and permanent place of residence within
60 days after the closing of the mortgage, and thereafter continually occupy the residence as
(my/our) principal and permanent residence for the life of the mortgage loan.
8. (I/We) have no present intent to lease, sell, assign or transfer any interest in the residence to another
party and have not entered into any agreement, understanding or other arrangement to lease, sell,
assign or transfer the residence.
9. (I/We) do not intend to nor will anyone else use any portion of the residence in trade or business and
do not intend to deduct any portion of the cost of the residence as a home business expense on
(my/our) federal income tax return(s) (except in connection with the rental on non owner-occupied
units in a two to four unit residence).
10. (I/We) do not intend to use the residence as investment property and do not expect to receive any
income from the residence or the land with the exception of rental income incidental to a two-four
unit residence.
11. (I/We) do not intend to use the residence as a recreational or seasonal residence.
12. All of the land being purchased with the residence reasonably maintains the basic livability of the
residence and will not provide a source of income to the undersigned. No subdivision map or deed
has been recorded providing for the further subdivision of the land nor has the land received any
subdivision approvals from municipal or county zoning authorities. The property being purchased
consists of only one (l) lot which does not exceed one (l) acre in size. The land cannot be subdivided
under current zoning regulations. If the property consists of more than one lot or exceeds one acre in
size (I/We) have disclosed the same in writing to the NJHMFA and will have submitted prior to
closing a letter from the municipal zoning officer stating that the property cannot be subdivided, in
accordance with NJHMFA requirements. (I/We are not currently seeking and have no intention of
seeking any variance from applicable subdivision or other zoning regulations for such purposes. In
any event, (I/We) hereby represent and warrant (I/We) will not subdivide the property or otherwise
convey a portion thereof so long as NJHMFA holds the first lien on the property.
13. (I/We) at the time of the mortgage closing will not own other real estate with the exception of the
A) Other Real Estate is vacant land.
B) Other Real Estate is commercial or industrial in character and use.
C) Other Real Estate is a vacation home and not used as primary residence.
14. (I/We) certify that (I/We) have included incomes of all mortgagors and any other person who is
expected to reside in the residence being financed. Annualized gross income is determined by
multiplying gross monthly income by 12. Gross monthly income is the sum of monthly gross pay;
any additional income from overtime, part-time employment, bonuses, dividends, interest, royalties,
pensions, Veterans Administration compensation, net rental income, etc. and other income (such as
alimony, child support, public assistance, sick pay, social security benefits, unemployment
compensation, income received from trusts, and income received from business activities or
investments). (I/We) understand that the income eligibility verification relied upon by the mortgagee
cannot be more than 4 months old at the time of mortgage closing. (I/We) further understand that if
the mortgage closing does not occur within 4 months, current income verification will be required. If
current household income exceeds applicable income limits, this application will be rejected and any
commitment issued by the Agency will be null and void.
15. (I/We) will not use any part of the loan proceeds to acquire or replace an existing mortgage, except
for a construction period loan, bridge loan or similar temporary initial financing with a term of 24
months or less.
16. (I/We) have not had a present ownership interest in a principal residence, including a manufactured
home, at any time during the three-year period immediately prior to the closing on this home
HMFA301HS V:Forms/HMFA301HS.PDF Created 3/29/17
A) (I/We) understand that for purposes of the Home Seeker Program "a first-time homebuyer” is
defined as someone who has not had an ownership interest in (not listed on the deed of) their
primary residence during the previous three calendar years, unless evidenced as qualifying
under the Veteran’s Exception.
17. (I/We) understand that any false or misleading statement by (me/us) in this Affidavit constitutes a
criminal offense.
18. There is no secondary financing relating to the purchase of the property, other than that which has
been disclosed in writing to the NJHMFA and approved in writing by the NJHMFA.
19. Representations made herein shall survive the mortgage closing should this loan be consummated.
The NJHMFA may obtain or re-verify information or documents used in processing this loan. I
hereby authorize release of information to the NJHMFA or its designee by my employer, bank,
accountant, stock broker, mortgage lender, creditor or other source to verify the accuracy of
information on my credit and assets or documents the lender uses in deciding whether to approve
the loan. A photocopy of this form with my signature is sufficient authorization.
The information the NJHMFA obtains is only to be used in the processing of my mortgage loan
application or in the later re-verification of any of the credit information in the course of an audit or
review by the NJHMFA, lender, its agents or later purchasers of the mortgage loan.
This is notice to you as required by the Right to Financial Privacy Act of 1978 that NJHMFA has a
right of access to financial records held by financial institutions in connection with the consideration
or administration of assistance to you. Financial records involving your transaction will be available
to NJHMFA without further notice or authorization but will not be disclosed or released without your
consent except as required or permitted by law.
Execution at Time of Loan Application
L.S. ______________________________
L.S. ______________________________
Sworn and Subscribed to before me
on this ________day of _____________ 20____
________________________________ My commission expires on:__________________
___________________________________ _______________________________
Date and Place Lender
By: ____________________________
I, the representative for the lender, have explained the contents of this Affidavit to each of the Purchasers
whose signature appears above, and I have no reason to believe that those individuals made any
misstatements in or omissions from the warranties and representation required to be made herein.