New Jersey First-Time Home Buyer Programs and Assistance

New Jersey Housing and Mortgage Finance Agency (NJHMFA) currently lists 6 programs for New Jersey buyers, with down payment help up to $15,000 through NJHMFA Down Payment Assistance Program (DPA). Figures below were read from the agency's own pages on September 11, 2026.

New Jersey first-time buyer programs open now

New Jersey Housing and Mortgage Finance Agency (NJHMFA) is the state's housing finance agency (homebuyer programs page). It runs 2 down payment or closing-cost assistance programs alongside 4 below-market first mortgages. Has not had an ownership interest in a primary residence during the previous three years.

Program	Type	Amount	First-time only	Min. credit	Income limit
NJHMFA Down Payment Assistance Program (DPA) source	Forgivable second loan	Up to $15,000, amount set by the county of the property (either $15,000 or $10,000)	Yes	n/a	Statewide DPA program: $134,600 to $154,800 for 1-2 person households (100% AMI) depending on county;
NJHMFA First Generation Down Payment Assistance Program (Smart Start Plus) source	Forgivable second loan	$7,000, in addition to the NJHMFA DPA award, for a combined total of $17,000 to $22,000	Yes	n/a	See program page
NJHMFA First-Time Homebuyer Mortgage Program source	First mortgage	See program page	Yes	n/a	$134,600 to $154,800 (100% AMI, 1-2 person household) depending on county;
NJHMFA Homeward Bound Mortgage Program source	First mortgage	See program page	No	n/a	See program page
NJHMFA HFA Advantage Mortgage Program source	First mortgage	See program page	No	n/a	See program page
NJHMFA Police and Firemen's Retirement System (PFRS) Mortgage Program source	First mortgage	See program page	No	n/a	See program page

NJHMFA Down Payment Assistance Program (DPA). Terms: 0% interest, five-year forgivable second loan, no monthly payment; forgiven if borrower occupies as primary residence for five years and does not refinance or convey the first mortgage Purchase price limit: $566,355 (Cumberland/Mercer/Warren, 1-unit) to $1,306,975 (Bergen/Essex/Hudson/Hunterdon/Middlesex/Monmouth/Morris/Ocean/Passaic/Somerset/Sussex/Union, 1-unit); higher in Urban Target Areas Must pair with: An NJHMFA first mortgage (First-Time Homebuyer Mortgage Program, Homeward Bound, or HFA Advantage) Program page
NJHMFA First Generation Down Payment Assistance Program (Smart Start Plus). Terms: 0% interest, five-year forgivable second loan, no monthly payment Must pair with: NJHMFA DPA plus an NJHMFA first mortgage Program page
NJHMFA First-Time Homebuyer Mortgage Program. Terms: 30-year fixed-rate, government-insured (FHA/VA/USDA) first mortgage originated through a participating lender; can be combined with NJHMFA DPA Purchase price limit: $566,355 to $1,306,975 (1-unit) depending on county Program page
NJHMFA Homeward Bound Mortgage Program. Terms: 30-year fixed-rate, government-insured loan; open to first-time, trade-up, and trade-down borrowers; can be combined with NJHMFA DPA Program page
NJHMFA HFA Advantage Mortgage Program. Terms: 30-year fixed-rate conventional loan with affordable mortgage insurance and low down payment; can be coupled with NJHMFA DPA Program page
NJHMFA Police and Firemen's Retirement System (PFRS) Mortgage Program. Terms: 30-year fixed rate; maximum mortgage amount $766,550; rates set semi-annually in February and August Program page

City and county programs in New Jersey

Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.

City of Newark: Live Newark Home Closing Cost Program. Up to $20,000. Forgivable second loan. Income limit: Subject to HUD income limits (specific figures not published on the program page). First-time buyers only. Official page

How little you can put down

You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On New Jersey's median-priced home (about $545,300), 3% down is roughly $16,359. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.

Who counts as a first-time buyer

For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. New Jersey programs often add income and purchase-price limits, which is another reason to confirm the details with New Jersey Housing and Mortgage Finance Agency (NJHMFA).

Stack a buyer rebate on top in New Jersey

Down-payment assistance and a buyer commission rebate are two different things, and in New Jersey you can use both. Assistance from New Jersey Housing and Mortgage Finance Agency (NJHMFA) helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $10,906 on a median-priced home), which can cover much of your closing bill.

See New Jersey buyer rebates → See New Jersey closing costs →

Frequently asked questions

What first-time home buyer programs are available in New Jersey?

New Jersey Housing and Mortgage Finance Agency (NJHMFA) lists 6 programs: NJHMFA Down Payment Assistance Program (DPA), NJHMFA First Generation Down Payment Assistance Program (Smart Start Plus), NJHMFA First-Time Homebuyer Mortgage Program, NJHMFA Homeward Bound Mortgage Program, NJHMFA HFA Advantage Mortgage Program, NJHMFA Police and Firemen's Retirement System (PFRS) Mortgage Program. Down payment help runs up to $15,000. City of Newark also run local down payment programs.

How much down payment assistance can you get in New Jersey?

Up to $15,000 through NJHMFA Down Payment Assistance Program (DPA) (forgivable second loan). Other New Jersey programs offer different amounts; see the table on this page for each one.

Do you have to be a first-time buyer to qualify in New Jersey?

Not for every program. 3 of 6 New Jersey programs are open to repeat buyers. Has not had an ownership interest in a primary residence during the previous three years. Buyers of homes in Urban Target Areas or Qualified Veterans do not need to be first-time homebuyers but must not own another primary residence at closing.

How much down payment do you need in New Jersey?

As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On New Jersey's median-priced home (about $545,300), 3% is roughly $16,359. You do not need 20% down, though 20% lets you avoid mortgage insurance.

Who counts as a first-time home buyer?

For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some New Jersey programs also have income and purchase-price limits, so check with New Jersey Housing and Mortgage Finance Agency (NJHMFA).

Can I combine assistance with a buyer rebate in New Jersey?

Yes. A buyer commission rebate is separate from down-payment assistance and is legal in New Jersey. Assistance helps with your down payment and closing costs up front; a rebate returns about 2% of the price at closing, which you can put toward closing costs. You can use both.

Official sources

New Jersey program details last verified against New Jersey Housing and Mortgage Finance Agency (NJHMFA) on September 11, 2026.

Read the full guide to the cash you need to buy →

This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with New Jersey Housing and Mortgage Finance Agency (NJHMFA) and your lender before you rely on them.

See first-time buyer programs in all states