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NJ Housing Finance Agency Programs

First-Time Home Buyer Programs in New Jersey

Get up to $22,000 in down payment assistance through NJHMFA programs. Forgivable loans, no monthly payments, no interest charges. We help you access every dollar available.

NMLS 1577754 • Licensed in NJ, NY, PA, CT, MD, OH, GA

NJHMFA Down Payment Assistance Programs

Up to $15,000 Down Payment Assistance

NJHMFA's signature program provides up to $15,000 in forgivable assistance for down payment and/or closing costs.

$15,000 maximum forgivable loan
Forgiven after 5 years of continuous occupancy
0% interest rate - no monthly payments
Second lien on your property (removed after 5 years)

$7,000 First-Generation Homebuyer Program

Additional assistance for first-generation homebuyers and former NJ foster youth.

$7,000 additional forgivable assistance
Can combine with $15K for total $22,000
Parents/guardians don't own residential property
OR former NJ foster care system participant

How NJHMFA Assistance Works:

  1. 1
    Get Pre-Approved:

    Apply for a NJHMFA first-time homebuyer mortgage through an approved lender (like us).

  2. 2
    Complete Homebuyer Education:

    Take an approved 8-hour homebuyer education course (online or in-person).

  3. 3
    Apply for Assistance:

    Request down payment assistance when you find a home and go under contract.

  4. 4
    Close on Your Home:

    Assistance is provided at closing. You receive up to $15,000 (or $22,000 with first-gen program).

  5. 5
    Live in Your Home 5 Years:

    After 5 years of continuous occupancy, the entire loan is forgiven. No repayment required.

NJHMFA Program Requirements

Who qualifies for New Jersey first-time buyer assistance

✅ Buyer Requirements:

  • No home ownership in past 3 years (you, your spouse, or any co-borrower)
  • Primary residence only - must occupy within 60 days and for 5+ years
  • Complete homebuyer education - 8-hour approved course
  • Meet income limits - varies by county and household size
  • Credit score 580+ (FHA) or 620+ (Conventional)

🏠 Property Requirements:

  • Located in New Jersey - any county eligible
  • 1-4 unit property - single-family, condo, townhouse, or small multi-family
  • Meet purchase price limits - varies by county (higher in Bergen/Hudson)
  • Pass property inspection - must meet minimum standards
  • Cannot be investment property - primary residence only

Federal First-Time Buyer Loan Programs

Low down payment options available to all NJ first-time buyers

FHA Loans - 3.5% Down Payment

Federal Housing Administration loans are the most popular choice for first-time buyers. Low down payment, flexible credit requirements, and seller can pay up to 6% of closing costs.

Down Payment:

3.5% minimum (580+ score) or 10% (500-579 score)

Credit Score:

580 minimum (500 with 10% down)

Mortgage Insurance:

Required (1.75% upfront + 0.55% annual)

VA Loans - 0% Down Payment

Veterans, active duty military, and eligible spouses can buy with $0 down. No PMI required, competitive rates, and seller can pay all closing costs.

Down Payment:

$0 - 100% financing available

Credit Score:

No official minimum (lenders prefer 580+)

Mortgage Insurance:

None - only 2.15% VA funding fee

Conventional 97 Loans - 3% Down Payment

Fannie Mae and Freddie Mac's HomeReady/Home Possible programs allow just 3% down for first-time buyers. PMI can be removed at 20% equity.

Down Payment:

3% minimum

Credit Score:

620 minimum (higher is better)

Mortgage Insurance:

Required until 20% equity (removable)

Ready to Access NJ First-Time Buyer Programs?

We're NJHMFA-approved lenders. Get pre-approved in 24 hours and we'll help you access up to $22,000 in down payment assistance.

Jimmy Joseph MBA • NMLS 1577754jjoseph@cmghomeloans.com