With a significant portion of New Jersey residents continuing to struggle to pay their mortgages and a fair share already facing possible foreclosures, there continues to be a need for governmental mortgage assistance. Here is where the New Jersey Emergency Rescue Mortgage Assistance (or NJ ERMA) can help New Jersey residents fighting to not lose their homes.

With President Joe Biden signing into law, the American Rescue Plan Act, the federal government gave states $10 billion of funds for mortgage and housing-related problems caused by the pandemic. On February 8th, 2022, New Jersey began allocating its share of about $325 million from the American Rescue Plan Act to help New Jersey homeowners who are behind on their mortgage payments, are entering foreclosure, or are already being foreclosed.
To learn more about what NJ ERMA is and how it can help you and your family avoid foreclosure, read on!

What is the New Jersey Emergency Rescue Mortgage Assistance program?

NJ ERMA is a financial assistance program focused on helping New Jersey homeowners that suffered significant financial losses due to the COVID-19 pandemic and are still having difficulty paying their mortgage payments or other housing expenses (like property taxes or homeowners’ insurance). Financial losses include large decreases in incomes and/or an increase in expenses due to the pandemic.
The NJ ERMA program can help households receive a loan for up to $35,000 to help pay off their mortgages. The even better news is that NJ ERMA can be a forgivable loan if lenders meet specific criteria. NJ ERMA is currently accepting applications both online and over the phone at (855) 647-7700, where you can be connected to a NJ ERMA program team member.

Who is eligible for the New Jersey Emergency Rescue Mortgage Assistance program?

According to the New Jersey Housing and Mortgage Finance Agency, you may be eligible for the NJ ERMA program if you meet the following criteria:

  • Own and occupy an eligible one-to four-unit primary residence
  • Have experienced a COVID-19 related financial hardship, and have been unable to remain current on mortgage payments
  • Meet household income limits
  • Have been current on mortgage and property taxes as of January 2020

Income decrease or expenses increase must be at least 10%, and the homeowner must have already received these hardships after January 21st, 2020. An additional requirement is that the household’s income must be “equal to or less than 150% of the area median income, consistent with Treasury guidance” (New Jersey Housing and Mortgage Finance Agency). There are also liquid assets limitations as well. The best way for you to determine if you are eligible for NJ ERMA is to go to: https://nj.gov/dca/hmfa/covid19/docs/Mortgage_Reinstatement_Guidelines.pdf

Are there other requirements to qualify for the NJ ERMA program?

Yes, there are a few, but here are some of the most important ones to take note of if you are considering applying for the New Jersey Emergency Rescue Mortgage Assistance program:

  • The property must be in the state of New Jersey
  • The property must be your main residence
  • You must already be behind on your mortgage and/or have forbearance on the mortgage or escrow shortage
  • You must not be more than thirty days behind from January 21st, 2021 on your mortgage payments or housing costs
  • Your mortgage lender must accept NJ ERMA’s assistance

What type of documentation is needed to apply for the New Jersey Emergency Rescue Mortgage Assistance program?

It is always best to be prepared with all documentation in order to alleviate the application and approval process. If you are interested in applying for NJ ERMA, you should have the following documentation ready at your disposal:

  • Government-issued ID(s): for all adult household members
  • Your most recent pay stubs for up to thirty days
  • Two months of all of your bank statements for all of your bank accounts
  • All tax returns from 2019 and onwards
  • Signed 4506-C IRS form
  • Your most recent mortgage statement

Other documentation is likely needed to determine if you are eligible for the NJ ERMA. For instance, if you are self-employed, you must present profit and loss statements, lease agreements (if the property is a multi-family dwelling), any and all types of proof that you have suffered decreased incomes or increased costs due to COVID-19, and bankruptcy forms if you are bankrupt or in the process of declaring bankruptcy.

What exactly is included in the loan from NJ ERMA?

If you are eligible, you may receive up to $35,000 as a three-year forgivable loan without interest or payments. Should circumstances change (like selling of the property or not maintaining residency during the terms of the NJ ERMA loan), you will be held responsible for paying back the loan.

NJ ERMA is great program for mortgage borrowers that have suffered financial hardships due to the COVID-19 pandemic.

There is still hope! If you believe that you meet the criteria for the NJ ERMA program, you should begin collecting your documents and begin the application process by completing the pre-screening: https://njerma.com/prescreening. Additionally, if you are already in foreclosure, you are still eligible for the NJ ERMA program!

Begin your application today to help you and your household avoid foreclosure!