First-Time Home Buyer Programs in New Jersey

New Jersey Housing and Mortgage Finance Agency (NJHMFA) Programs:

First‑Time Homebuyer Program:

Eligibility: Targets first‑time buyers (no homeownership in past 3 years) or buyers in targeted areas (repeat eligible).
Offerings: 30‑year fixed‑rate mortgage (FHA, VA, USDA, conventional) with competitive rates; can pair with DPA.
Requirements:

• Income ≤ county-specific limits (e.g., $152,600 in Bergen County as of 2025).
• Credit score ≥ 620 (varies by loan type).
• Debt‑to‑income ≤ 45% (50% with compensating factors).
• Homebuyer education required.
• Purchase price cap: $679,900 (non-targeted) or $831,100 (targeted).

Down Payment Assistance (DPA):

Benefits: Up to $15,000 in higher‑cost counties or $10,000 in lower‑cost counties as a forgivable second loan (5‑year forgiveness if home remains owner‑occupied); available with NJHMFA first mortgages.
New for first‑generation buyers: Additional $7,000 grant (no parent homeownership history), raising max assistance to $22,000.

Road to Recovery Program:

Description: Grant up to $65,000 for down payment, closing costs & counseling for first-time buyers ≤ 80% AMI in urban/foreclosure‑recovery areas.
Requirements: Income ≤ 80% AMI (e.g., $82,600 in Essex County); must use NJHMFA mortgage; limited funding.

Local Programs:

Newark

Newark Homeownership Revitalization Program: Deferred loan up to $25,000 (0%, due on sale/refinance) for first-time buyers ≤ 80% AMI (e.g., $77,350 for family of 4).

Jersey City

Jersey City First‑Time Homebuyer Program: Forgivable loan up to $20,000 (forgiven after 10 years); income ≤ 80% AMI; targets low‑income neighborhoods.

Trenton

Trenton Down Payment Assistance: Deferred loan up to $15,000 (0%, due on sale) for first-time buyers ≤ 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Federal tax credit up to 20% of mortgage interest (max $2,000/year); fee applies; combinable with NJHMFA loans.
• FHA Loans: Minimum 3.5% down; credit scores as low as 580 (10% down under threshold).
• USDA Loans: Zero‑down for rural areas; income limits apply.
• VA Loans: Zero‑down for eligible veterans or active military.