Buying your first home in the Garden State can feel like a stretch. Prices are high, inventory is tight, and saving a 20% down payment isn’t realistic for most people. The good news? You don’t need 20%. And New Jersey offers help for buyers who are just getting started.
We’ve put together this guide to the programs worth knowing about. Here’s what’s available, who qualifies, and where to begin.
NJHMFA: New Jersey’s Statewide Program
The New Jersey Housing and Mortgage Finance Agency (NJHMFA) is the state’s main resource for first-time buyers. It offers two programs that work together.
NJHMFA First-Time Homebuyer Mortgage Program
This is the foundation. It’s a competitive 30-year, fixed-rate, government-insured loan (FHA, VA or USDA) offered through NJHMFA participating lenders. It’s also the loan you need to unlock the assistance below.
NJHMFA Down Payment Assistance Program (DPA)
Need help with the down payment and closing costs? The DPA provides up to $15,000, depending on the county where you’re buying. It comes as an interest-free, five-year forgivable second loan with no monthly payment.
To qualify:
- You haven’t owned a home in the previous three years
- You’re buying a primary residence in New Jersey
- You pair the DPA with an NJHMFA first mortgage
- You meet the program’s income and purchase price limits
NJHMFA First Generation Down Payment Assistance Program
Are you the first in your family to buy a home? The First Generation DPA adds up to $7,000 on top of the standard DPA. That brings the total possible assistance to $22,000. It follows the same five-year forgivable structure.
To qualify:
- You meet the first-time homebuyer requirements above
- You meet NJHMFA’s definition of a first-generation homebuyer
- You pair it with an NJHMFA first mortgage
Income limits, purchase price limits and assistance amounts vary by county and can change. NJHMFA keeps the current details on its homebuyer page.
Benefits for Veterans
New Jersey veterans have extra flexibility. Buyers who are Qualified Veterans, and buyers purchasing in designated target areas, don’t have to be first-time homebuyers to use NJHMFA’s down payment assistance. They just can’t own another primary residence at closing.
Want the full picture on VA loan benefits? Visit our VA Loan page.
County and City Assistance
Many New Jersey counties and cities offer their own help. Some can be combined with NJHMFA programs. Here are a few to look into:
| Location | Program | What It Offers |
| Essex County | HOMEbuyer Assistance Program | Down payment and closing cost help for first-time buyers |
| Camden County | First-Time Homebuyer Program | Income-based assistance for first-time buyers |
| Monmouth County | First-Time Homebuyer Program | Interest-free deferred second mortgage of up to $10,000 |
| Mercer County | First-Time Homebuyer Program | Assistance for income-qualified first-time buyers |
| Newark | Live Newark Closing Cost Program | Closing cost and down payment help for homes within the city |
| Camden | First-Time Homebuyer Program | Assistance for income-qualified buyers who complete homebuyer education |
| Trenton | First-Time Homebuyer Program | Assistance for first-time buyers purchasing in the city |
Funding for local programs can run out, and eligibility rules differ. Check with the county or city office before you count on any of them.
Where to Start
Not sure what comes first? Here’s a simple path.
- Check your credit and budget. Know your credit score and what monthly payment feels comfortable.
- Take a homebuyer education course. Some local programs require one. Even when they don’t, it’s time well spent.
- Talk to a lender. NJHMFA programs run through participating lenders. A lender can tell you which programs fit your income and the county you’re shopping in.
- Get your COE if you’re a veteran. You’ll need a Certificate of Eligibility from the VA. Our VA Loan page walks you through how to request it.
- Get pre-approved. It shows sellers you’re serious and gives you a clear price range.
Ready to Take the Next Step?
Buying a home is a big move. You don’t have to figure it out alone. If you have questions about financing your first home in New Jersey, we’re happy to talk it through. Give us a call at 1-800-800-0450.
Program details, amounts and eligibility requirements are subject to change and may vary by county, income and purchase price. This article is for informational purposes only and is not a commitment to lend. Please contact the program administrator for current guidelines.