Down Payment Requirements by Loan Type 2025
Understand minimum down payments from 0% (VA) to 20% (Jumbo). Explore NJ assistance programs up to $15K.
Explore Your OptionsDown Payment by Loan Type
VA Loan
0%
Veterans/Active Duty
On $749K home: $0 down
FHA Loan
3.5%
580+ Credit Score
On $749K home: $26,240 down
Conventional
3-20%
Typically 5%+
On $749K home: $37K-150K down
Jumbo
10-20%
Loans >$766,550
On $1M home: $100K-200K down
Bergen County Example: $749,714 Home
| Loan Type | Down Payment | Loan Amount | Monthly P&I |
|---|---|---|---|
| VA (0%) | $0 | $749,714 | $4,467 |
| FHA (3.5%) | $26,240 | $723,474 | $4,397 |
| Conv (5%) | $37,486 | $712,228 | $4,464 |
| Conv (20%) | $149,943 | $599,771 | $3,759 (no PMI) |
Note: 20% down eliminates PMI, saving $200-400/month. Lower down payments require mortgage insurance but allow earlier homeownership.
NJ Down Payment Assistance Programs
NJHMFA Down Payment Assistance
- • Up to $15,000 forgivable down payment/closing cost assistance
- • Available with FHA, Conventional, USDA, or VA loans
- • Income limits: $133,000 for Bergen County (varies by county)
- • Must be first-time buyer (no home ownership in 3 years)
- • Complete homebuyer education course required
- • Forgivable over 5 years (0% interest, no monthly payment)
Other NJ First-Time Buyer Programs
- • NJHMFA Advantage: Low down payment (3%) conventional loans
- • HomeBuyer Mortgage: Below-market interest rates
- • Military Service Member: Additional benefits for veterans
- • Urban Enterprise Zones: Special programs for designated areas
Tips to Save for Down Payment
Short-Term (6-12 Months)
- • Automate savings: $500-1000/mo → $6K-12K/year
- • Cut subscriptions: Save $100-300/mo
- • Side hustle: Freelance, gig work
- • Tax refund: Direct to down payment savings
- • Gift funds: Family can contribute (documented)
Long-Term (2-3 Years)
- • High-yield savings: 4-5% APY on down payment fund
- • Roth IRA: Withdraw $10K for first home (penalty-free)
- • 401(k) loan: Borrow for down payment (risky)
- • Pay off debt: Improve DTI ratio for approval
- • Start with FHA/VA: Lower down payment, build equity
Explore Your Down Payment Options
Work with Jimmy Joseph MBA to find the lowest down payment program for your situation, including assistance programs.
NMLS #1577754 | (718) 812-7798