New Jersey’s state homebuyer programs can combine a 30-year fixed-rate mortgage with down-payment and closing-cost assistance. They are not universal grants: buyers must use an NJHMFA participating lender, meet income and purchase-price limits, occupy the property as a principal residence and follow the loan terms.
NJHMFA First-Time Homebuyer Mortgage Program
The New Jersey Housing and Mortgage Finance Agency offers qualified first-time buyers a competitive 30-year fixed-rate government-insured loan through participating lenders. Eligible loan types can include FHA, VA and USDA financing.
NJHMFA generally defines a first-time buyer as someone who has not owned a home during the previous three years. Some Urban Target Area purchases can receive different treatment, but the buyer cannot own another home.
Statewide down-payment assistance
Qualified buyers can receive up to $15,000 based on the county of purchase. The assistance can be used toward eligible down-payment and closing costs and must be paired with an NJHMFA first mortgage.
The assistance is structured as an interest-free, five-year forgivable second loan with no monthly payment. It is forgiven when the borrower continuously occupies the property as a principal residence for five years without refinancing or transferring the home. Selling, moving or refinancing earlier can trigger repayment.
First-Generation Down Payment Assistance
Qualifying first-generation buyers can receive an additional $7,000, producing total assistance of approximately $17,000 to $22,000 depending on the county. The first-generation definition considers the ownership history of the buyer, parents or legal guardians, spouse or partner and household members.
2026 county assistance amounts
- Up to $15,000: Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset and Union.
- Up to $10,000: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem, Sussex and Warren.
- First-generation supplement: an additional $7,000 for eligible buyers.
Program amounts and lists can change. Confirm the applicable amount with NJHMFA and a participating lender before making an offer.
Major eligibility factors
- The home must be in New Jersey and used as the principal residence.
- Household income must be within the applicable county and family-size limit.
- The purchase price must be within the program limit.
- The borrower must qualify for the NJHMFA first mortgage.
- The property and occupancy must satisfy program requirements.
- Homebuyer education may be required.
What the assistance cannot solve
Down-payment assistance does not eliminate mortgage underwriting, monthly payments, reserves, inspection risks or closing costs outside the program rules. NJHMFA states that assistance cannot cover an appraisal shortfall or closing costs customarily paid by the seller.
How to apply
- Review current NJHMFA income and purchase-price limits.
- Check whether a property may be in an Urban Target Area.
- Contact an NJHMFA participating lender.
- Compare the NJHMFA loan with other mortgage options.
- Complete required homebuyer education.
- Keep the five-year forgiveness restrictions in mind before accepting assistance.
Questions for the lender
- What interest rate and fees apply today?
- What is the exact assistance amount for this county?
- What repayment is due after an early sale or refinance?
- Which household income must be counted?
- Does the property meet program requirements?
- How does this compare with a conventional, FHA, VA or USDA loan without assistance?
Official resources
General information only, not mortgage or financial advice. Program funding, limits, rates and eligibility can change.
Leave a Reply