New Jersey first-time homebuyer assistance programs
Buying a home in New Jersey may feel out of reach when you’re a first-time homebuyer. After all, as of January 2025, the state’s median home sale price was $538,300, an increase of 9 percent year-over-year and well above the national median of $418,478, according to Redfin.
However, if you qualify, you may be eligible for one or more of the state’s affordable mortgage programs, thanks to the New Jersey Housing and Mortgage Finance Agency (NJHMFA). The organization partners with approved mortgage lenders to offer competitive loans and down payment assistance.
New Jersey first-time homebuyer programs
NJHMFA First-Time Homebuyer Mortgage
NJHMFA offers first-time homebuyers competitive terms on a 30-year, fixed-rate FHA, VA or USDA loan, which can be combined with the agency’s down payment assistance. Repeat buyers shopping in target areas may also be eligible, provided they don’t currently own another home. Single-family homes, condos, townhomes, manufactured or mobile homes, and multi-family properties of up to four units are all eligible for financing.
HFA Advantage Mortgage loans
NJHMFA also offers Freddie Mac HFA Advantage loans with up to 97 percent financing. If you plan to pair this program with down payment assistance, you must be a first-time buyer, but if not, repeat buyers are eligible. Similar to a First-Time Homebuyer Mortgage, the program can finance a single-family home, condo, townhome, home in a planned unit development (PUD), manufactured home, mobile home or two- to four-family home, provided the borrower lives in one of the units.
NJHMFA Police and Firemen’s Retirement System Mortgage
If you’re an active member of New Jersey’s Police and Firefighter Retirement System and have at least one year of service, you could be eligible for a competitive 30-year fixed-rate loan of up to $766,550. Repeat buyers are eligible, but some program funding is reserved for first-timers. You can use the financing to buy a one- or two-family home or condo, or land to build a one- to two-family home.
There are fees associated with the program, including a $1,500 lender fee, a $325 administrative fee and a $30 monthly fee. If you put less than 20 percent down on the property, you must also pay mortgage insurance.
New Jersey down payment assistance and grants
Down Payment Assistance Program
If you received your mortgage through NJHMFA, and you’re a first-time homebuyer, you may also be eligible for up to $15,000 in down payment and closing cost assistance. The funds come in a no-interest, five-year, forgivable second mortgage.
First Generation Down Payment Assistance Program
Another five-year, forgivable second mortgage administered by NJHMFA, the First Generation Down Payment Assistance Program offers up to $7,000 to first-generation, first-time homebuyers. This program can be paired with $15,000 from the Down Payment Assistance Program, so in total, you could be eligible for up to $22,000 in assistance.
City-specific homebuyer assistance programs
Newark: Live Newark Home Closing Cost Program
This program provides eligible borrowers up to $20,000 in a no-interest, forgivable loan for down payment and closing costs. Every year the borrower lives in the home, 20 percent of the loan is forgiven, until, after 10 years, the balance is forgiven completely.
Trenton: First-Time Homebuyer Program
Low- and moderate-income first-time buyers in Trenton may qualify for up to $15,000 in the form of a forgivable loan. The money can be used to match borrowers’ down payment savings and offset closing costs. The loan is forgiven over time — up to five years for the maximum amount of assistance.
Camden County: First-Time Homebuyer Program
This program offers up to $25,000 toward a down payment or closing costs for low- and moderate-income first-time homebuyers in Camden County. The assistance is a no-interest loan that is forgiven over time. Homebuyers receiving less than $15,000 of assistance receive forgiveness after five years in the home; those receiving between $15,000 and $25,000 receive it after 10.
Other first-time homebuyer loan programs
While you’re considering first-time buyer programs in New Jersey, be sure to explore nationally available loan programs, such as:
- FHA loans: If you have a credit score as low as 580, you may qualify for an FHA loan with a down payment as low as 3.5 percent.
- VA loans: If you’re a member of the military, a veteran or a surviving spouse, you could qualify for a VA loan, which don’t typically require a down payment.
- USDA loans: USDA loans don’t have a down payment requirement, but they’re available only to those buying in a USDA-eligible rural area.
- Good Neighbor Next Door program: Public service workers may qualify for this program, which offers buyers up to 50 percent off the purchase price of homes in certain areas.
Get started
As you prepare to buy, consider contacting NJHMFA to learn more about your eligibility for their programs. You should also:
- Compare New Jersey mortgage rates: Shopping with at least three lenders is likely to get you a better deal.
- Read reviews of New Jersey mortgage lenders: Rates are important, but they’re only part of the picture. Reviews give you a preview of your prospective lenders’ communication, expertise and other factors.
- Shop for New Jersey homeowners insurance: In most cases, your homeowners insurance premium will make up a part of your monthly mortgage payment. Comparing a few insurers can help you find the coverage you need at a competitive price.
- Study the New Jersey housing market: This might help you better understand where you can afford to buy — and where you may be eligible for assistance. A qualified real estate agent who has experience with first-time buyers can help with this.
- Work on your credit score: It impacts whether you’ll be approved for a mortgage and your mortgage rate. Improving it before you apply will save you money.
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