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New Jersey Police and Fire Mortgage Program

For active members of the New Jersey Police and Firemen's Retirement System (PFRS) with at least one year of creditable service. Rates locked in at 1.55%!

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NJ Police & Fire Program

W. Scott Sheppard
Aug 20 4 minutes read

We understand the potential stresses and financial burdens our everyday heroes go through on a daily basis. With the increased medical coverage and pension contributions over the past few years, many of your paychecks are potentially decreasing instead of increasing, despite the yearly percentage raises you receive.

One way to alleviate this financial stress would be to get a favorable interest rate with your mortgage, allowing you to have more financial freedom. A lot of police officers and firefighters have been taking advantage of the benefits of this exclusive mortgage program available only to police officers and firefighters in New Jersey. 

Read all about the terms and requirements of the program below. And please pass this article onto a friend or family member who you think could benefit. With all that is going on in our country, our heroes deserve to know about the awesome benefits this program offers! Feel free to contact us if you would like to learn more about getting qualified for the program! 


1. Terms

Rates are set twice a year in February and August. The rate is based on the 10-year Treasury bill plus 1%. August 2020 Update: 1.55% (1.621 APR) for a 30-year fixed-rate! (APR based on a $300,000 loan with a 20% downpayment). 


2. Eligible Properties & Occupancy Requirements

The eligible properties are one and two-family residences and condominium units located in the state of New Jersey. The borrower must occupy the residence as their principal residence within 120 days of closing and remain in the residence for the life of the loan.  


3. Maximum Mortgage, Mortgage Insurance, and Closing Costs

The maximum mortgage amount is $510,400. Mortgage insurance is required on all loans with down payments of less than 20%. Borrowers are responsible for all closing costs in addition to the application fee. 


4. Fees

Applicants will be required to pay a standard, non-refundable application fee. Trident Mortgage offers an application fee of $1,500. If the loan closes successfully, the administrator of the funds, NJHMFA, is to be paid $325. Borrowers will pay a flat monthly charge of $30 per month as a servicing fee. After 3 years, on the 37th month, the fee is reduced to $18 per month. The servicing fee will be added directly onto the mortgage payment. 

All applicants are also subject to credit approval. 


5. Notice To Applicants

The State Treasurer has obtained and is relying on an opinion from tax counsel that there is an adequate basis, in accordance with prevailing guidelines, to conclude that it is reasonable for the Police and Firemen's Retirement System to take the position that mortgages issued under this program should not be treated as taxable distributions. If it is ultimately determined that these mortgages are taxable distributions, you could be required to pay tax on the mortgage proceeds as well as penalties. We suggest you consider consulting your own tax advisor before submitting the application. Note: Loan amounts do not include real estate taxes or homeowners insurance unless specified.

Curious If You Qualify? 

If you are interested to learn more about the program and to see if you qualify, let's schedule a time to talk. All we will need is 10-15 minutes to determine if this program is the right fit for you!

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