New Jersey Down Payment Assistance
New Jersey Down Payment Assistance Programs
A guide to current down payment assistance options in New Jersey, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for New Jersey homebuyers.
New Jersey Housing Finance Agency
New Jersey Housing and Mortgage Finance Agency (NJHMFA)
NJHMFA administers the primary DPA programs for New Jersey. Program details below are current as of April 23, 2026 - confirm current terms directly with NJHMFA before applying.
Statewide DPA Programs in New Jersey
NJHMFA First-Time Homebuyer Mortgage Program
NJHMFA
30-year fixed-rate first mortgage for first-time homebuyers. Pairs with NJHMFA Down Payment Assistance.
Paired with: Conventional, FHA, VA, RD
- First-time homebuyer: Required
- Primary residence only
- Minimum FICO: 620
- Income: Household income limits apply (not to exceed 140% AMI depending on program and location); see NJHMFA schedule.
- Homebuyer education required
First-time homebuyer means no ownership interest in a principal residence in the prior 3 years. Purchase price limits apply.
Source: www.nj.gov
NJHMFA Down Payment Assistance Program (DPA)
NJHMFA
Up to $15,000 (amount varies by county) for down payment and closing costs, structured as an interest-free, 5-year forgivable second mortgage with no monthly payment.
Paired with: Conventional, FHA, VA, RD
- First-time homebuyer: Required
- Primary residence only
- Minimum FICO: 620
- Income: Household income limits apply by county and funding source (not to exceed 140% AMI).
- Homebuyer education required
Must be paired with an NJHMFA first mortgage. Borrower must have insufficient liquid assets to close at 80% LTV or less.
Source: www.nj.gov
First Generation Down Payment Assistance
NJHMFA
Additional $7,000 for first-generation, first-time homebuyers, stackable with the NJHMFA DPA for up to $22,000 total. 5-year forgivable second mortgage.
- First-time homebuyer: Required
- Primary residence only
- Minimum FICO: 620
- Income: Household income limits apply.
- Homebuyer education required
First-generation means the borrower (and, per program definition, their parents) have not previously owned a home. Must be paired with an NJHMFA first mortgage. Subject to funding availability.
Source: www.nj.gov
Homeward Bound Mortgage Program
NJHMFA
30-year fixed-rate government-insured first mortgage; open to both first-time and repeat homebuyers. Can be combined with the NJHMFA DPA.
Paired with: FHA, VA, RD
- First-time homebuyer: Not required
- Primary residence only
- Income: Household income and purchase price limits apply; see the Homeward Bound schedule.
- Homebuyer education required
Property must be located in New Jersey and serve as the primary residence.
Source: www.nj.gov
Police and Firemen’s Retirement System (PFRS) Mortgage Program
NJHMFA
30-year fixed-rate first mortgage for active members of the NJ Police and Firemen’s Retirement System with at least one year of creditable service.
- Primary residence only
Maximum mortgage amount and other terms set by NJHMFA and PFRS.
Source: www.nj.gov
Major City & County Programs in New Jersey
Live Newark Homebuyer Program
City of Newark · Newark, NJ
Up to $20,000 no-interest loan for down payment and/or closing costs; 20% of the loan forgiven per full year of residency over a 5-year period.
Buyer must purchase and occupy a home in Newark. Income and other program requirements apply.
Source: www.newarknj.gov
Jersey City First-Time Homebuyer Program
City of Jersey City · Jersey City, NJ
Down payment and closing cost assistance for eligible low- to moderate-income first-time homebuyers purchasing in Jersey City.
Assistance amount, affordability period, and eligibility are set by the City; confirm current cap, income limits, and application window with Jersey City before applying.
Source: www.jerseycitynj.gov
New Jersey Notes for Homebuyers
- New Jersey is an attorney-involved state; buyers typically engage an attorney during the purchase process.
2026 Loan Limits in New Jersey
Conforming (Conventional)
$806,500 baseline
Some New Jersey counties qualify as high-cost, with limits up to $1,209,750.
FHA
$524,225 floor
Higher-cost New Jersey counties can reach the FHA ceiling of $1,209,750.
Live DPA Pricing for New Jersey
Pricing below is sourced live from hundreds of wholesale lenders for a New Jersey scenario. Edit the inputs to match your situation.
FHA Down Payment Assistance
Up to 5% assistance; repayable second at first rate + 2% over 10 years
▸Program details
- ✓Minimum credit score: 580
- ✓Non-traditional credit also possible
- ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
- ✓Assistance can be used for down payment, closing costs, or both
- ✓Second lien: 10-year fixed, repayable
- ✓Second lien rate is 2% higher than the first mortgage rate
- ✓No first-time homebuyer requirement
- ✓No income cap
- ✓Purchase of primary residence only
- ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
- ✓DTI per AUS and FHA manual underwriting guidelines
- ✓First lien: FHA 30-year fixed
Assistance amount
Compare DPA options for New Jersey with live pricing
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