NJ Property tax relief program increased to $2 billion

On June 15th, Governor Phil Murphy, Senate President Scutari, and Assembly Speaker Craig Coughlin announced the expansion of the ANCHOR Tax Relief Program, making the relief program one of the largest in state history.

ANCHOR, which stands for Affordable New Jersey Communities for Homeowners and Renters, was announced by Governor Murphy in March as part of his Fiscal Year 2023 (FY2023) Budget Proposal. The expansion of the program will increase this investment from the nearly $900 million proposed in March to over $2 billion and will reduce property taxes for over 1.16 million homeowners and 900,000 renters beginning in FY2023. 

Under the expanded ANCHOR Property Tax Relief Program proposal, there will be a full phase-in of rebates and the benefits will be simplified:

• 870,000-plus homeowners with a household income of under $150,000 would receive a $1,500 property tax credit on their property tax bill each year

• 290,000-plus homeowners with a household income between $150,000 and $250,000 would receive a $1,000 property tax credit on their property tax bill each year

• 900,000-plus renters with incomes up to $150,000 would receive $450 each year to help offset the rent increases caused by increasing property taxes

The average New Jersey property tax bill was approximately $9,300 in 2021. ANCHOR’s direct property tax relief rebates could offset over 16 percent of the average property tax bill in New Jersey for some homeowners. For a middle-class family receiving the $1,500 in direct relief, the average bill will effectively become $7,800, a property tax level New Jersey has not seen since 2012.

 “Helping people keep up with their bills and giving them more breathing room has never been more important than it is right now,” said Assemblyman Freiman. “Two billion dollars in direct property tax relief to New Jersey residents is monumental. Taxpayers will see the impact of this kind of investment on their property tax bill and in their wallets.”

“We are proud to stand with the Governor and Speaker Coughlin today for the announcement of the ANCHOR Program,” said Assemblywoman Sadaf Jaffer. “We are all committed to ensuring that New Jersey is an affordable state to live and work in. Direct and tangible property tax relief is one important way we can make that goal a reality."

"I want to give credit where it is due, and to thank Governor Murphy, Senate President Scutari and Speaker Coughlin for coming together to recognize that many New Jersey residents are still struggling to make ends meet in the aftermath of the worst days of the COVID 19 pandemic," said Senator Andrew Zwicker. "The ANCHOR program promises timely relief to millions of homeowners and renters, putting money back into their pockets, and helping to keep our state affordable, and our economy strong and competitive in both the short- and long-term."

The ANCHOR program expands on and replaces the Homestead Rebate Program, which serves 470,000 homeowners annually and provides an average benefit of $628. Renters are not eligible for the current Homestead program, but ANCHOR recognizes that rents are often raised to offset rising property taxes. ANCHOR will make over four times more New Jerseyans eligible to receive a property tax rebate when compared with Homestead.

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Source: Office of the Governor Phil Murphy

The Top Reasons To Own Your Home [INFOGRAPHIC]

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Some Highlights

• June is National Homeownership Month, and it’s a great time to consider the benefits of owning your own home.

• If you’re considering homeownership, know that it can give you privacy, comfort, and a place to express yourself. It can also provide financial stability and help you grow your net worth.

• Are you ready to experience all the great benefits that come from purchasing a home? Let’s connect to begin the process today.

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VA Loans: Helping Veterans Achieve Their Homeownership Dreams

The purpose of Veterans Affairs (VA) home loans is to provide a pathway to homeownership for those who have sacrificed so much by serving our nation. As the Veterans Administration says of the program:

“The objective of the VA Home Loan Guaranty program is to help eligible Veterans, active-duty personnel, surviving spouses, and members of the Reserves and National Guard purchase, retain, and adapt homes in recognition of their service. . . .”

For over 75 years, VA home loans have provided millions of veterans and their families the opportunity to purchase their own homes.

2020 Data on VA Home Loans

• 1,246,817 home loans are guaranteed by the Veterans Administration

• The average VA loan amount totals $301,044

• 178,171 of those using a VA Loan are first-time homebuyers

Top Benefits of the VA Home Loan Program

As we reflect on their sacrifice and honor our nation’s veterans, it’s important to ensure all veterans know the full extent of benefits VA home loans offer. As Jeff London, Director of the VA Home Loan Program, says:

“VA loans offer an extraordinary opportunity for veterans because of lower interest rates, lower monthly payments, no or low-down payments, and no private mortgage insurance.”

Those who qualify for a VA home loan are eligible for the following:

• Borrowers can often purchase a home with no down payment. In 2020, 350,094 individuals using a VA Loan were able to purchase their homes without putting money down.

• Many other loans with down payments under 20% require Private Mortgage Insurance (PMI). VA Loans do not require PMI, which means veterans can save on their monthly housing costs.

• Finally, VA-Backed Loans often offer the most competitive terms and interest rates.

Bottom Line

One way we can honor and thank our veterans this year is to ensure they have the best information about the benefits of VA home loans. Homeownership is the American Dream. Our veterans sacrifice so much in service to our nation and deserve to achieve their homeownership goals. Thank you for your service.