Frequently Asked Questions (FAQ)
1. Can I apply to both types of housing (The Willis and Goslin)?
No. Applicants may apply for only one housing type. You must choose either The Willis or The Goslin based on your income eligibility category.
2. Where are the homes located?
The homes are located at 25, 30, 35, 44, 46, and 55 Linden Street in Salem City, New Jersey.
3. What is the rationale behind the lower pricing of new homes?
The homes are supported with funding from the New Jersey Department of Community Affairs Affordable Housing Trust Fund, which allows us to offer them at below-market rates. Each home is subject to a 20-year deed restriction requiring it to be sold only to income-qualified households at an affordable price. These restrictions help families who might otherwise be priced out of the housing market gain access to stable homeownership.
4. Is residency in New Jersey a prerequisite for application?
Yes, you must currently live in New Jersey to apply. In addition, applicants must meet the income eligibility requirements and agree to use the home as their primary residence.
5. If my income falls below the minimum requirement, is it possible to provide a larger down payment?
Unfortunately, no. Income requirements must follow state guidelines without exception. A larger down payment cannot replace or make up for not meeting the minimum income threshold.
6. What is the timeline and procedure for selecting buyers?
The application window is open from September 1st through November 1st, 2025. If there are more eligible applicants than available homes, a randomized lottery selection will be held on November 3rd, 2025. Selected applicants will then undergo full income and eligibility verification before moving forward with the purchase process. Expected occupancy is May 2026.
7. When will the homes be completed and available for occupancy?
Construction is expected to be completed in Spring of 2026. The homes are anticipated to be move-in ready by May 2026.
8. Am I permitted to use my own mortgage lender?
Yes.
9. Is participation in HUD-certified homeowner education mandatory?
Yes. Completion of an approved first-time homebuyer education course is required for all buyers.
10. What are the implications if I wish to sell the property during the restriction period?
If you choose to sell your home during the 20-year restriction period, you cannot sell it at market value. The home must be resold at an affordable price to another income-qualified household, and the sale must be reviewed and approved by New Jersey Department of Community Affairs. Any transfer of the property that does not follow these requirements would be considered invalid.
11. What happens if I choose to sell the property after the restriction period has concluded?
After the 20-year affordability period ends, the restrictions automatically expire, and the homeowner may sell the property at market value. However, this is providing that 95 percent of the price differential between the market and deed-restricted value is paid to the administrative agent, as an instrument of the municipality, at closing. The value of the difference goes directly into the municipality’s Affordable Housing Trust Fund.
12. Am I allowed to rent the property to another individual post-purchase?
No. These homes are intended strictly for owner-occupancy during the restriction period. Renting or leasing the property is not permitted, and violations could result in penalties or loss of eligibility.
13. Are non-traditional households, such as those comprising siblings, cousins, or a mother and child, eligible to apply for this opportunity?
Yes. Non-traditional households are welcome to apply as long as they meet the income eligibility and household size requirements and intend to occupy the home as their primary residence.
14. What is the reason for the exclusion of one-person and two-person households from purchasing these homes?
This restriction follows the New Jersey Uniform Housing Affordability Controls (UHAC) regulation and is based on the unit sizes of the Linden Street Homes, which are three-bedroom single-family houses.
15. What is the required down payment amount?
The minimum down payment ranges from roughly $4,650 to $6,500, depending on the specific home (The Willis or The Goslin). Exact amounts are provided in the sales information and application materials.
16. What are the expected property tax obligations?
Property taxes are estimated at approximately $5,180.16 per year for The Willis homes and $7,218.40 per year for The Goslin homes, based on the assessed value of each home. These amounts are subject to change depending on final assessments by the City of Salem Tax Assessor’s Office.
17. What challenges might I encounter throughout this process?
The application and lottery process can be competitive due to the limited number of homes and large number of applicants. Buyers must also meet income requirements and complete a first-time homebuyer education course, and they will need to comply with affordability restrictions for 20 years.
18. What compelling reasons support the consideration of purchasing these homes?
These homes are brand new, Energy Star certified, and affordably priced through public funding. They offer families the opportunity to own a home and become long-term members of the community. In addition, Salem offers the charm of a small, historic town with a strong sense of community, affordable living costs, and convenient access to nearby employment centers in South Jersey, Delaware, and Philadelphia.
19. Until when will applications be accepted?
Applications will be accepted from September 1st through November 1st, 2025. No applications will be accepted after this deadline.
20. How can I access the application?
You can access the application online through the following links:
English: https://www.surveymonkey.com/r/735ZXKN
Spanish: https://www.surveymonkey.com/r/WFYKPWP
21. If I am unable to submit all required documents with my application, what are my options?
All applicants are encouraged to submit a complete application with all required documents by the deadline to ensure timely review. If additional information or documentation is needed after the lottery selection, applicants will be contacted directly with instructions on how to provide it.
22. What are the advantages of purchasing a home in Salem, NJ?
There are numerous benefits to acquiring property in Salem, including housing affordability, close proximity to major metropolitan areas with accessible employment opportunities, and the chance to reside in a tight-knit community with a historic and walkable downtown area.
23. What is the next step in the process following the application closure?
Once the application period closes on November 1st, all applications will be reviewed for basic eligibility, followed by a lottery conducted on November 3rd. Applicants will then be notified of the results and given guidance on next steps, including income verification and document submission.
24. What are the minimum qualifications required to be eligible for the lottery?
Applicants must meet both family size and income eligibility requirements based on state guidelines. Income limits vary depending on household size, and applicants must fall within the low- or moderate-income ranges published annually by the New Jersey Department of Community Affairs (NJDCA). Applicants must also be current New Jersey residents and intend to occupy the home as their primary residence.
25. What is the process associated with the lottery?
The lottery is a random selection process conducted under the oversight of the New Jersey Housing Affordability Service to ensure fairness and transparency.
26. When can I anticipate receiving a response regarding my selection status from the lottery?
Applicants will be notified in writing shortly after the lottery takes place.
27. What actions will I need to undertake if I am selected in the lottery?
You will receive instructions on submitting required documentation for income verification, mortgage pre-approval, and proof of first-time homebuyer education if not submitted during the application process.
28. What occurs if I am not selected?
If you are not selected through the lottery, your name will be placed on a waiting list. If the selected applicants withdraw or are found ineligible, another lottery will be held to select a new applicant from the waiting list. Even if you are not selected this time, we will retain your information and notify you of future affordable housing opportunities developed by Restrepo & Associates and the Cumberland County Improvement Authority.
29. What documentation is necessary to complete the full NJHMFA application?
This includes HUD counseling and mortgage pre-approval from an approved lender.
30. Where might I locate a lender?
You are welcome to use any mortgage lender of your choice, as long as they can work with the program’s deed restriction requirements. If you would like assistance, we can connect you with lenders who are already familiar with the restrictions and have experience approving loans for this development.
30. Is it necessary to retain a lawyer?
You are not required to retain a lawyer to apply for or purchase one of the homes. However, as with any real estate transaction, it is helpful and recommended to have an attorney review your contract during the closing process.
