First-Time Home Buyers
in New Jersey
Your complete guide to buying your first home in NJ. Low down payment options (as low as 3%), down payment assistance programs, and expert guidance every step of the way.
Best Loan Programs for First-Time Buyers
Low down payment options designed specifically for first-time home buyers in New Jersey
FHA Loans
The most popular choice for first-time buyers. Flexible credit requirements, low down payment, and competitive rates.
Conventional 97 (3% Down)
Lower down payment than most conventional loans with no upfront mortgage insurance premium.
HomeReady (Fannie Mae)
For low-to-moderate income buyers. Includes homebuyer education and flexible income sources.
Home Possible (Freddie Mac)
Similar to HomeReady with affordable pricing for qualifying buyers.
First-Time Buyer Advantages
Special programs, assistance, and benefits available only to first-time home buyers
Low Down Payment Options
Put down as little as 3-3.5% instead of the traditional 20%. Keep more cash for moving costs, furniture, and emergencies.
Down Payment Assistance
New Jersey offers grants and forgivable loans to help with down payment and closing costs. Some programs provide $10,000-$15,000.
First-Time Buyer Education
Free homebuyer education courses teach you the process, improve your qualification, and may unlock additional assistance.
Tax Benefits
Deduct mortgage interest and property taxes. NJ first-time buyers may qualify for Mortgage Credit Certificates (MCCs) for additional savings.
Your First-Time Home Buying Journey
Follow these 6 steps to successfully purchase your first home in New Jersey
Get Pre-Approved
Start with pre-approval to know your budget and strengthen your offer. Takes 24-48 hours.
Determine Your Budget
Calculate what you can afford including down payment, closing costs, and monthly payments. Use our calculator.
Find a Real Estate Agent
Work with an agent who specializes in first-time buyers and knows Bergen County neighborhoods.
House Hunt & Make Offer
Tour homes within your budget. When you find the one, make a competitive offer with your pre-approval letter.
Complete Home Inspection
Hire a professional inspector ($400-$600) to identify any issues. Negotiate repairs if needed.
Finalize Mortgage & Close
Submit final documents, complete appraisal, and clear to close. Close on your home and get the keys!
Real First-Time Buyer Example
See how a typical first-time buyer purchases a home in Bergen County
$400,000 Home Purchase
First-Time Buyer Using FHA Loan (3.5% Down)
Own a $400K Home for Just $24,000 Down!
First-Time Buyer FAQs
Get answers to the most common questions from first-time home buyers
How much do I need for a down payment as a first-time buyer in NJ?
As little as 3-3.5% with FHA or conventional programs. For a $400,000 home in Bergen County, that's $12,000-$14,000 down. Many first-time buyers use FHA with 3.5% down ($14,000 on $400K), plus $8,000-$12,000 for closing costs. Down payment assistance programs can help cover these costs.
What credit score do I need to buy my first home?
Minimum 580 for FHA loans (most popular for first-time buyers), or 620-660 for conventional loans. However, higher scores (680+) qualify for better interest rates. If your score is below 580, work on improving it for 6-12 months before applying. Pay down credit cards, fix errors on credit reports, and avoid new debt.
Can I use gift money for my down payment?
Yes! FHA and conventional loans allow 100% of your down payment and closing costs to come from gifts from family members (parents, siblings, grandparents). You'll need a gift letter stating the funds are a gift, not a loan, and documentation showing the transfer. This is one of the most common ways first-time buyers cover down payments.
What is down payment assistance and how do I qualify?
Down payment assistance programs provide grants or forgivable loans ($10,000-$15,000+) to help cover down payment and closing costs. NJ offers programs through NJHMFA and local housing authorities. Qualification typically requires: (1) First-time buyer status, (2) Income limits ($75,000-$120,000 depending on area), (3) Homebuyer education course, (4) Purchase in specific areas. Ask us about available programs in Bergen County.
How long does it take to buy a home as a first-time buyer?
Typically 60-90 days from start to finish. Timeline: Pre-approval (1-2 days) → House hunting (2-8 weeks) → Offer accepted → Home inspection (1 week) → Mortgage processing (30-45 days) → Closing. First-time buyers often take longer during house hunting as they learn what they want. Starting pre-approval early speeds up the process significantly.
What are closing costs and how much should I expect to pay?
Closing costs are fees due at closing: lender fees, title insurance, appraisal, attorney, recording fees, prepaid taxes/insurance. Expect 2-5% of purchase price ($8,000-$20,000 on a $400K home). You can ask sellers to cover up to 6% (FHA) or 3% (conventional) of closing costs as part of your offer. Some lenders offer "lender credits" to reduce upfront costs in exchange for slightly higher interest rates.
Should I buy or rent in New Jersey as a first-time buyer?
Buy if: (1) You plan to stay 5+ years, (2) You have stable income, (3) You can afford 3-5% down + closing costs, (4) Monthly payment (mortgage + taxes + insurance) is comparable to rent. In Bergen County, median rent is $2,500-$3,000/month. A $400K home costs ~$3,200/month (including taxes/insurance). If you're paying $2,800+ in rent, buying often makes financial sense.
What mistakes do first-time buyers make that I should avoid?
Top mistakes: (1) Not getting pre-approved first (weakens your offer), (2) Maxing out your budget (leaves no room for repairs/emergencies), (3) Skipping home inspection ($400 inspection saves $10,000+ in repairs), (4) Making large purchases before closing (new car kills your approval), (5) Not shopping for lenders (rates vary 0.25-0.5%), (6) Waiving contingencies in competitive markets (risky without proper diligence).
Ready to Buy Your First Home in New Jersey?
Get pre-approved today and start your journey to homeownership. We'll guide you through every step, from pre-approval to closing, with programs designed for first-time buyers.
Serving Bergen County, NJ and surrounding areas • NMLS #1842935