Security Deposit Loans in New Jersey

When short on cash, moving can be almost impossible. Yet your cash crunch might be what qualifies you for security deposit loans in New Jersey. One of these programs may be what allows you to meet your landlord’s cash move-in requirements.

The Hebrew Free Loan of NJ

The Hebrew Free Loan of NJ provides zero-interest loans for security deposits and rent payments. While the amounts change annually, you may typically be able to borrow up to $1,000 with no cosigner. Up to $5,000 may normally be borrowed interest-free if you have a cosigner.

To qualify, you must be a member of the Jewish Community in one of the following counties:

  • Monmouth County (732-774-2990)
  • Passaic County (973-595-0111)
  • Bergen County (973-595-0111)
  • Morris County (973-765-9050)
  • Union County (limited geographic area, 973-765-9050)
  • Essex County (973-765-9050)

Furthermore, you will need to demonstrate that you can afford to repay the loan. Be prepared to provide copies of pay stubs or your latest tax return. You will be asked to provide post-dated checks which will be used to make your loan payments at a later date. Loan repayment is limited to only the amount that you borrowed, as there are no interest charges on the loans.

Shelter Exit Program

The Shelter Exit Program is a federally funded program that provides domestic violence victims a way to move into permanent housing. Many of these victims have young children. The program will provide assistance in the form of security deposit assistance in addition to help with rent payments.

In order to qualify, your household income cannot exceed 80% of the median income level for the community where you are attempting to rent a home or apartment. Furthermore, your situation must be documented by a case manager who refers you to the Shelter Exit Program at the New Jersey Department of Community Affairs. To find a location in your county, download the directory of DFCP Community Program providers or call 609-292-3846. Understand that funds provided for a security deposit may need to be returned to the agency upon your vacating the property.

Emergency Loan Program

Two organizations provide interest-free emergency security deposit loans to local residents. Community Enterprises Corporation and Collaborative Support Programs of New Jersey both provide zero-interest loans to help you with a housing emergency.

You will be asked to open either a Savings or Money Management account. The purpose is to help you develop a financial plan to gain self-sufficiency. An Independent Development Account is available in order to provide incentives for you to save beyond loan repayment towards a bigger goal, such as one day owning your own home. For more information, call 732-780-1175.

By taking advantage of one of these programs, you could get a loan to make the security deposit on your next apartment. New Jersey provides opportunities through public agencies and nonprofit organizations to get a security deposit loan, often with no interest due. Since this can be of great savings, it is best to see if you qualify for one of these special programs before applying for a loan with a for-profit commercial lender.

Family Loan Program

Lower income residents in Hunterdon, Morris, Somerset, Sussex or Warren Counties may borrow up to $1,000 towards a security deposit or rental assistance. Instead of a credit rating, you need to show that you can hold down at least a part-time job of 20 or more hours per week to qualify.

The Family Loan Program is offered through NORWESCAP as a community service. For more information, call 908-859-1777.