If you haven't owned a home in three years, New Jersey's housing agency (NJHMFA) can give you up to $15,000, or up to $22,000 as a first-generation buyer, toward your down payment and closing costs, and it's forgiven after five years if you stay in the home.
What help is there for first-time home buyers in New Jersey?
The main state program is NJHMFA's down payment assistance: up to $15,000 in 12 counties and $10,000 in the other 9, plus $7,000 more for first-generation buyers (up to $22,000 total). It's an interest-free loan with no monthly payment, forgiven after five years in the home. It must be paired with an NJHMFA 30-year fixed first mortgage (FHA, VA, USDA or a conventional HFA Advantage loan) from a participating lender. NJHMFA's checklist lists a 620 minimum credit score, and household income and purchase price limits apply by county.
NJHMFA first-time homebuyer programs in 2026
The New Jersey Housing and Mortgage Finance Agency (NJHMFA) is the state's housing finance agency. It doesn't lend directly to you; it works through participating lenders. Its homebuyer programs:
| Program | What it is | Key rules |
|---|---|---|
| First-Time Homebuyer Mortgage | 30-year fixed FHA, VA or USDA loan | First-time buyer (no owned home in 3 years); income and price limits; can add DPA |
| Homeward Bound | 30-year fixed FHA, VA or USDA loan | Income limits by county; can add DPA |
| HFA Advantage | 30-year fixed conventional loan with lower-cost mortgage insurance | Generally 3% down; 620+ credit; first-time status required only if you use DPA |
| Down Payment Assistance (DPA) | $10,000 or $15,000 by county | Interest-free, no payments, forgiven after 5 years; must pair with an NJHMFA first mortgage; one-time use |
| First Generation DPA | $7,000 on top of DPA ($17,000–$22,000 total) | Must also be a first-generation buyer (see below) |
| Police & Firemen's Retirement System (PFRS) | 30-year fixed for active PFRS members with 1+ year of service | Maximum mortgage $766,550; no DPA, but other secondary financing is allowed |
NJHMFA programs are purchase-only (no refinances), for a primary residence in New Jersey. You don't have to be a current New Jersey resident. Rates and terms come from the participating lender.
How much down payment assistance can you get in each New Jersey county?
| Counties | DPA | With First Generation |
|---|---|---|
| Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Union | $15,000 | $22,000 |
| Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem, Sussex, Warren | $10,000 | $17,000 |
The money can go toward your down payment and closing costs. It's a second loan that charges no interest and has no monthly payment. It's forgiven if you live in the home as your main residence for five years from closing and don't sell or refinance the first mortgage. Sell or refinance sooner and it must be repaid.
Who counts as a first-time or first-generation home buyer in NJ?
- First-time homebuyer: you haven't had an ownership interest in your primary residence during the previous three years. So someone who sold a home four years ago can count as first-time again.
- Exceptions: for the First-Time Homebuyer Mortgage itself, buyers in an Urban Target Area and qualified veterans don't need to be first-time buyers, but they can't own another primary residence at closing. To get DPA, you must be a first-time buyer.
- First-generation homebuyer: a first-time buyer whose parents or legal guardians don't currently own residential property anywhere, and whose spouse or domestic partner hasn't owned a primary residence in the past three years. It also includes anyone who was in foster care in New Jersey, was an emancipated youth, or was designated a homeless unaccompanied youth under the McKinney-Vento Act.
2026 NJHMFA income limits and purchase price limits
Limits below are effective June 17, 2026 for the First-Time Homebuyer program. Income limits are set as a percentage of area median income (AMI), count total household income and apply with or without DPA. Properties in an Urban Target Area (UTA) get higher limits.
Maximum household income
| Counties | 1–2 people (100% AMI) | 3+ people (115% AMI) | UTA 1–2 (120%) | UTA 3+ (140%) |
|---|---|---|---|---|
| Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Hudson, Salem, Warren | $134,600 | $154,790 | $161,520 | $188,440 |
| Essex, Morris, Sussex, Union | $138,400 | $159,160 | $166,080 | $193,760 |
| Bergen, Passaic | $139,100 | $159,965 | $166,920 | $194,740 |
| Mercer | $139,800 | $160,770 | $167,760 | $195,720 |
| Monmouth, Ocean | $140,600 | $161,690 | $168,720 | $196,840 |
| Hunterdon, Middlesex, Somerset | $154,800 | $178,020 | $185,760 | $216,720 |
Maximum purchase price
Outside an Urban Target Area (UTA)
| Counties | 1 unit | 2 units | 3 units | 4 units |
|---|---|---|---|---|
| Cumberland, Mercer, Warren | $566,355 | $725,146 | $876,496 | $1,089,341 |
| Burlington, Camden, Gloucester, Salem | $659,386 | $844,112 | $1,020,363 | $1,268,078 |
| Atlantic, Cape May | $764,069 | $978,144 | $1,182,333 | $1,469,388 |
| Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union | $1,306,975 | $1,673,445 | $2,022,730 | $2,513,895 |
Inside an Urban Target Area (UTA)
| Counties | 1 unit | 2 units | 3 units | 4 units |
|---|---|---|---|---|
| Cumberland, Mercer, Warren | $692,211 | $886,290 | $1,071,272 | $1,331,417 |
| Burlington, Camden, Gloucester, Salem | $805,916 | $1,031,692 | $1,247,111 | $1,549,873 |
| Atlantic, Cape May | $933,863 | $1,195,510 | $1,445,073 | $1,795,918 |
| Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union | $1,597,413 | $2,045,321 | $2,472,226 | $3,072,539 |
FHA and VA maximum loan amounts prevail if they are more restrictive. Homeward Bound has its own income limits (for example, $161,520 to $185,760 depending on county). Limits change, so confirm with NJHMFA or a participating lender.
New Jersey Urban Target Areas (higher limits)
These municipalities contain NJHMFA Urban Target Areas. Not every part of every town qualifies, so check the exact address with NJHMFA's Site Evaluator.
Atlantic County: Absecon, Atlantic City, Hamilton, Pleasantville, Ventnor City
Bergen County: Elmwood Park, Fairview, South Hackensack, Wallington
Burlington County: Burlington, Delran, Palmyra, Washington, Woodland
Camden County: Berlin, Camden, Cherry Hill, Gloucester City, Pennsauken, Pine Hill, Woodlynne
Cape May County: Lower, West Wildwood, Wildwood Crest
Cumberland County: Bridgeton, Commercial, Millville, Vineland
Essex County: Belleville, City of Orange, East Orange, Glen Ridge, Irvington, Maplewood, Newark, South Orange Village
Gloucester County: Elk, Westville
Monmouth County: Asbury Park, Freehold, Long Branch, West Long Branch
Morris County: Mount Olive
Ocean County: Berkeley, Lakewood, Manchester, Toms River, Tuckerton
Passaic County: Passaic, Paterson, Totowa
Salem County: Elsinboro, Penns Grove, Quinton
Somerset County: Green Brook, North Plainfield, South Bound Brook
Union County: Elizabeth, Hillside, Linden, Plainfield
Warren County: Phillipsburg
NJHMFA down payment assistance rules and catches
- Credit: NJHMFA lists a 620 minimum credit score, and you must meet debt-to-income limits. That's higher than FHA's own rules (580 with 3.5% down, or 500–579 with 10% down), so a buyer under 620 can still look at a regular FHA loan without NJHMFA.
- Move in within 60 days and use the home as your primary residence.
- Property types: single-family homes, condos, townhomes, manufactured or mobile homes permanently affixed to land you own, or a 2–4 family home where you live in one unit.
- What DPA can't pay: closing costs customarily paid by the seller, or an appraisal gap (when the home appraises for less than the price).
- Once per person: DPA can only be used one time.
- Purchase only: NJHMFA doesn't refinance loans. You can refinance out later with no prepayment penalty, but the DPA must be repaid within the first five years.
- Through participating lenders only: find one on NJHMFA's participating lender list, or call 1-800-NJ-HOUSE.
Other first-time buyer loans in New Jersey: FHA, conventional, VA and USDA
NJHMFA isn't the only path. These national programs work the same in New Jersey, with or without NJHMFA help:
| Loan | Minimum down | Good to know |
|---|---|---|
| FHA | 3.5% with 580+ credit; 10% with 500–579 | Upfront and annual mortgage insurance; sellers can contribute up to 6% toward eligible costs |
| Conventional | 3% for eligible first-time buyers | PMI can be removed later; 2026 conforming limit $832,750 (higher in some counties) |
| VA | $0 for eligible veterans with full entitlement | No monthly mortgage insurance; funding fee unless exempt |
| USDA | $0 in eligible rural areas | 1% upfront and 0.35% annual fee; income limits; parts of New Jersey are eligible |
Not a fit for NJHMFA because of income or price limits? Many buyers still qualify for FHA or a 3% conventional loan, and some local programs run by counties or towns offer their own help. Ask your town or a HUD-approved housing counselor.
FHA vs. conventional for first-time buyers in New Jersey
Most first-time buyers end up choosing between these two. Both work with NJHMFA down payment help (FHA through the First-Time Homebuyer and Homeward Bound programs, conventional through HFA Advantage), and both work without it.
| Feature | FHA | Conventional |
|---|---|---|
| Minimum down | 3.5% with 580+ credit; 10% with 500–579 | 3% for eligible first-time buyers, HomeReady and Home Possible; 5% otherwise |
| Credit score | Down to 500 with LoanFight's lending partners | Lenders commonly want 620+; Home Possible lists 660 for a fixed-rate, one-unit purchase |
| Mortgage insurance | 1.75% upfront (usually financed) plus about 0.55% a year; lasts for the life of the loan with less than 10% down | Monthly PMI priced by credit and down payment; can be cancelled at 80% of the original value and ends automatically at 78% |
| Income limits | None | None on a standard loan; HomeReady and Home Possible cap income at 80% of area median income |
| 2026 loan limits | Set by county: $541,287 up to $1,249,125 for one unit | $832,750 baseline, up to $1,249,125 in high-cost counties |
| Seller help toward costs | Up to 6% of the price | 3% with less than 10% down, 6% with 10–25% down, 9% with 25% or more down |
| 2–4 family homes | 3.5% down if you live in one unit | Allowed if you live in one unit, but needs more down than a single-family home |
| Often best for | Lower scores, higher debt-to-income, smaller savings | Stronger credit (often 700+), buyers who want mortgage insurance to go away |
Rule of thumb: with a lower score, FHA's flat mortgage insurance usually wins. With stronger credit, conventional PMI is often cheaper and can be removed later, while FHA insurance with 3.5% down stays until you refinance. Ask your lending partner to price both on the same home. See the full FHA and conventional guides.
HomeReady (Fannie Mae)
- 3% down on a one-unit home, with no minimum of your own money (gifts and grants can cover it).
- Income limit: your qualifying income can't exceed 80% of the area median income for the property. Check an address with the Fannie Mae AMI lookup.
- Lower mortgage insurance than a standard conventional loan above 90% LTV, and it can be cancelled once you reach 20% equity.
- Education: if every borrower living in the home is a first-time buyer, at least one must complete a homeownership education course.
- $2,500 credit: Fannie Mae offers lenders a $2,500 credit on qualifying HomeReady purchases when income is at or below 50% of AMI and at least one borrower is a first-time buyer (through February 28, 2027). Ask whether your lender passes it on to you.
Home Possible (Freddie Mac)
- 3% down, with gifts, grants and employer help allowed and no minimum contribution of your own.
- Income limit of 80% of area median income. Check an address with Freddie Mac's Home Possible eligibility tool.
- Credit: Freddie Mac's fact sheet lists a 660 minimum indicator score for a fixed-rate, one-unit purchase.
- Education: first-time buyers complete a homeownership education course. Mortgage insurance can be cancelled at 20% equity.
HomePath (Fannie Mae-owned homes)
HomePath is Fannie Mae's site for homes it owns and is selling, usually after a foreclosure, including homes in New Jersey. Through the HomePath Ready Buyer program, first-time buyers who complete Fannie Mae's HomeView online course may get up to 3% in closing cost assistance when they buy and live in a HomePath property, and it can be combined with a HomeReady loan. Listings change constantly, and these homes are sold as is, so get an inspection.
HomeReady, Home Possible and HomePath terms are set by Fannie Mae and Freddie Mac and change. Confirm current rules with your lending partner.
Self-employed, ITIN or non-traditional income? Non-QM loans for first-time buyers
If your tax returns don't show what you really earn, or you don't have a Social Security number, a government loan may not be the only answer. These non-QM programs are made by private lenders. First-time buyers are commonly eligible, though some programs add limits. Terms below are the best currently available with select programs and vary by lender:
| Program | How you qualify | Best available (select programs) |
|---|---|---|
| Bank statement loan | 12 or 24 months of personal or business bank statements instead of tax returns | Up to 90% of the price (10% down) with 680–700+ credit on loans up to about $1 million; credit as low as 600 at up to 80% |
| P&L loan | A profit-and-loss statement, often prepared or signed by a tax professional, sometimes with 2–3 months of bank statements | Up to 85% with 680+; some programs don't allow a P&L-only file for first-time buyers, so a P&L plus bank statements may be required |
| 1099 loan | 1099 forms for contractors, gig workers and commissioned earners | Commonly 80–90% of the price; credit as low as 600 at up to 80% |
| ITIN mortgage | An IRS Individual Taxpayer Identification Number instead of an SSN, with full documentation or 12 months of bank statements | Up to 85% (15% down) with 660+ credit; loans up to $1.5 million |
| Asset-based (asset depletion) | Savings and investments converted into qualifying income | Commonly up to 80% with about 660+ credit |
| Written verification of employment (WVOE) | Your employer's written income verification instead of pay stubs and W-2s | Select programs; first-time buyers commonly need a larger down payment (up to 70% of the price) |
- NJHMFA assistance can't be combined with these loans. The DPA only works with an NJHMFA first mortgage, and non-QM loans usually cost more than FHA or conventional loans.
- Gift money is often allowed on a primary home, but many programs want some of your own funds (commonly about 5%) or lower the maximum when 100% of the down payment is a gift.
- Buying a condo? If the building isn't approved for FHA or conventional loans, a non-warrantable condo loan may work. Above the loan limits? See jumbo loans.
- Buying a 2–4 family home to live in? FHA allows 1–4 unit owner-occupied homes with 3.5% down, and NJHMFA programs allow them too if you live in one unit.
Free lookup tools for New Jersey home buyers
Check a property before you make an offer. All of these are free official tools:
| Tool | What it tells you |
|---|---|
| NJ mortgage calculator with taxes by town | Your full payment with each town's 2025 property tax rate |
| NJHMFA Site Evaluator | Whether an address is in an Urban Target Area (higher NJHMFA limits) |
| NJHMFA participating lenders | Lenders that can offer NJHMFA loans and down payment assistance |
| HUD FHA-approved condo lookup | Whether a condo building is approved for FHA loans |
| VA condo report | Whether a condo building is approved for VA loans |
| FEMA Flood Map Service Center | The official flood zone for an address. Lenders require flood insurance in high-risk zones. |
| NJDEP flood risk disclosure | New Jersey's flood disclosure law and its address lookup tool |
| USDA property eligibility map | Whether an address qualifies for a $0-down USDA loan |
| HUD FHA loan limit lookup | The 2026 FHA loan limit for your county |
| FHFA conforming loan limit map | The 2026 conventional loan limit for your county |
| Fannie Mae AMI lookup · Freddie Mac Home Possible tool | Whether your income fits the 3%-down HomeReady or Home Possible limits for an address |
| HUD housing counselor finder | Free or low-cost HUD-approved homebuyer counseling near you |
Steps to buying your first home in New Jersey
- Take homebuyer counseling. Free or low-cost HUD-approved counselors walk you through budgets and programs. NJHMFA's homebuyer guide points buyers to these courses.
- Check your credit and DTI. Aim for 620+ if you want NJHMFA. Try the DTI calculator.
- Get preapproved with a lender that offers the programs you want. If you want NJHMFA help, it must be an NJHMFA participating lender. Tell LoanFight about your situation and we can connect you with one.
- Budget for New Jersey property taxes. They vary a lot by town. Run the address through the NJ mortgage calculator with taxes by town.
- Make an offer and get through attorney review. A contract prepared by a real estate agent has a three-business-day attorney review period. Your attorney can still change or cancel the deal then.
- Home inspection, flood check and appraisal. Since March 20, 2024, New Jersey sellers must tell you before you're bound by the contract whether the home is in a FEMA flood hazard area and what flooding they know about. Check the address on FEMA's flood map too. DPA can't cover an appraisal gap, so keep some cash in reserve.
- Loan Estimate, commitment and Closing Disclosure. Compare your Loan Estimate line by line, and meet the mortgage contingency date in your contract.
- Closing. The seller is responsible for New Jersey's realty transfer fee and must provide the town's smoke alarm, carbon monoxide alarm and fire extinguisher certificate for one- and two-family homes, so delays on that certificate can delay closing.
Learn it step by step: Mortgage 101
New to all of this? These short lessons explain each step in plain English.
Worked example: what a first home in New Jersey really costs
Worked example: a first home in Edison (Middlesex County) with NJHMFA help
A buyer who hasn't owned a home in three years buys a $425,000 single-family home in Edison with an NJHMFA first mortgage (FHA) and the $15,000 Middlesex County down payment assistance. Example rate 7% (not a quote), 30 years. Taxes use Edison's 2025 effective tax rate of 1.700%; insurance is an example $1,500 a year; other debts are $400 a month.
| FHA down payment (3.5% of $425,000) | $14,875.00 |
| NJHMFA down payment assistance (Middlesex) | $15,000.00 |
| Left over for closing costs | $125.00 |
| Base loan ($425,000 − $14,875) | $410,125.00 |
| FHA upfront mortgage insurance (1.75%), financed | $7,177.19 |
| Total first mortgage | $417,302.19 |
| Principal + interest | $2,776.32 |
| FHA annual mortgage insurance (0.55%, first year, about) | $187.97 |
| Property taxes ($425,000 × 1.700% = $7,225 ÷ 12) | $602.08 |
| Homeowners insurance ($1,500 ÷ 12) | $125.00 |
| Total monthly payment | $3,691.38 |
| Gross income needed at a 43% DTI (($3,691.38 + $400) ÷ 0.43) | $9,514.84 a month (about $114,178 a year) |
Does it fit the limits? Middlesex County's NJHMFA income limit is $154,800 for a 1–2 person household and $178,020 for 3 or more, and the 1-unit purchase price limit is $1,306,975 (FHA's own loan limit also applies). This buyer fits. If they also qualify as a first-generation buyer, assistance rises to $22,000, leaving $7,125 for closing costs. The assistance is forgiven after five years if they keep living there and don't sell or refinance.
Arithmetic: $425,000 × 3.5% = $14,875; $425,000 − $14,875 = $410,125; × 1.75% = $7,177.19; P&I on $417,302.19 at 7% for 30 years = $2,776.32; $410,125 × 0.55% ÷ 12 = $187.97. The rate, insurance and debts are examples; real terms come from your lender's Loan Estimate.
How LoanFight helps first-time buyers in New Jersey
Tell us about your situation, with no SSN needed: the county you're shopping in, your price range, income, credit range and savings. We review it against current program guidelines from our lending partners nationwide and connect you with an appropriate lending partner. LoanFight works with lending partners that are NJHMFA participating lenders, so if an NJHMFA program and down payment assistance are the best fit, we can connect you with one. Our lending partners also offer FHA with credit scores down to 500 (10% down) and 580+ with 3.5% down, plus conventional, VA, USDA and non-QM options, so you can compare everything in one place. LoanFight is not a lender, is not affiliated with NJHMFA and doesn't administer its programs.
More New Jersey guides: New Jersey loan guide · NJ mortgage calculator.
Buyers purchased a $500,000 home from their uncle for $400,000 and used the $100,000 difference as a gift of equity to cut their cash to close.
Frequently asked questions
How much is the NJ first-time home buyer grant in 2026?
NJHMFA's down payment assistance is up to $15,000 in Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset and Union counties, and $10,000 in the other nine counties. First-generation buyers get $7,000 more, for up to $22,000. It's technically a forgivable loan, not a grant: it's forgiven after five years if you stay and don't sell or refinance.
Do I have to pay back NJHMFA down payment assistance?
Only if you sell, refinance the first mortgage or stop living in the home as your primary residence within five years of closing. Otherwise it's forgiven. It charges no interest and has no monthly payment.
What credit score do I need for NJHMFA?
NJHMFA's program checklist lists a 620 minimum credit score, plus debt-to-income limits. FHA itself allows 580+ with 3.5% down and 500–579 with 10% down, and LoanFight's lending partners offer FHA across that range, so a buyer under 620 may still qualify for FHA without NJHMFA.
What are the NJHMFA income limits for 2026?
Effective June 17, 2026, the First-Time Homebuyer limits run from $134,600 to $154,800 for 1–2 person households and $154,790 to $178,020 for 3 or more, depending on the county. Urban Target Areas allow more, up to $216,720 for 3+ people in Hunterdon, Middlesex and Somerset.
Who is considered a first-time home buyer in New Jersey?
Someone who hasn't had an ownership interest in their primary residence in the previous three years. Buyers in Urban Target Areas and qualified veterans can use the First-Time Homebuyer mortgage without being first-time buyers, but DPA requires first-time status.
Can I use NJHMFA assistance on a 2–4 family home?
Yes, if you live in one of the units as your primary residence. Purchase price limits are higher for 2, 3 and 4 units.
Can I get NJHMFA help with a conventional loan?
Yes. The HFA Advantage program is a 30-year fixed conventional loan, generally with 3% down and a 620 minimum score, and it can be combined with the down payment assistance.
Is FHA or conventional better for a first-time buyer in New Jersey?
It depends mostly on credit. FHA allows 3.5% down with 580+ credit (10% down from 500), but its mortgage insurance lasts for the life of the loan with less than 10% down. Conventional loans allow 3% down for eligible first-time buyers and HomeReady or Home Possible, usually want 620+ credit, and their PMI can be cancelled. Ask for both priced on the same home.
What is HomeReady and does it help first-time buyers?
HomeReady is Fannie Mae's 3%-down conventional loan for buyers whose income is at or below 80% of the area median income. It has lower mortgage insurance than a standard conventional loan, and if every occupying borrower is a first-time buyer, one must complete a homeownership course. Freddie Mac's Home Possible is similar.
Does LoanFight work with NJHMFA lenders?
Yes. LoanFight works with lending partners that are NJHMFA participating lenders, so if an NJHMFA mortgage and down payment assistance fit your situation, we can connect you with one. LoanFight itself is not a lender and is not affiliated with NJHMFA.
Can I buy my first home in New Jersey if I'm self-employed or have an ITIN?
Yes. Non-QM programs from private lenders qualify self-employed buyers with 12–24 months of bank statements, a P&L or 1099s, with select programs reaching 90% of the price with 680–700+ credit. ITIN buyers can get up to 85% with 660+ credit with select programs. These loans can't be combined with NJHMFA down payment assistance and usually cost more than FHA or conventional loans.
Do I need an attorney to buy my first home in New Jersey?
It's common and recommended. Contracts prepared by real estate agents include a three-business-day attorney review period, and NJHMFA's homebuyer guide advises retaining an attorney to protect your interests.
Sources
Programs, amounts and limits: NJHMFA homebuyers; First-Time Homebuyer fact sheet and limits effective 06/17/2026; First Generation fact sheet; HFA Advantage; Homeward Bound; program eligibility checklist; NJHMFA first-time homebuyer guide. Taxes: NJ Department of Community Affairs. Transfer fee: NJ Division of Taxation. Smoke/CO certificate: NJ DCA. Attorney review: Conley v. Guerrero (2017). Counseling: HUD. Flood disclosure: NJDEP. HomeReady: Fannie Mae. Home Possible: Freddie Mac fact sheet. HomePath: Fannie Mae HomePath. Non-QM terms: best currently available with select lending programs; they vary by lender. Loan documents: CFPB.
Educational information only, not an offer, approval or legal or financial advice. LoanFight is not a direct lender, is not affiliated with NJHMFA and does not administer its programs. Equal Housing Opportunity.
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