New Jersey offers multiple programs to help first-time buyers cover their down payment and closing costs — you may qualify for more than you think.
The NJ Housing and Mortgage Finance Agency (NJHMFA) offers up to $15,000 as a five-year, interest-free, forgivable loan for down payment and closing costs. The loan is forgiven at 20% per year — after five years, you owe nothing. To qualify: first-time buyer (no home ownership in past 3 years), meet income limits by county and household size, and purchase a primary residence in NJ.
Active and retired NJ Police and Firemen's Retirement System members may qualify for below-market mortgage rates — typically 0.5–1% below conventional rates, saving tens of thousands over the life of the loan.
NJHMFA's Smart Start combines a first mortgage with down payment assistance for qualified buyers who need help with both the mortgage and upfront costs. Income and purchase price limits apply by county.
Bergen, Essex, Hudson, and Passaic Counties each offer their own DPA programs with varying eligibility and assistance amounts. These can sometimes be combined with state programs for additional savings.
FHA loans allow 100% of the down payment to come from gift funds from a family member. Conventional loans also allow gift funds with proper documentation — a common strategy for first-time buyers in Northern NJ.
Common Questions
NJHMFA's main program offers up to $15,000. Combined with county programs, some buyers receive $20,000–$30,000 total.
The DPA is forgiven at 20% per year over five years. If you sell or refinance before five years, you repay the remaining unforgiven balance.
Yes. NJHMFA DPA is compatible with FHA, conventional, VA, and USDA first mortgages.
Limits vary by county and household size. In Bergen County, the limit for a family of four is approximately $130,000. Check NJHMFA.com for current limits.
Contact Jimmy Villafane today for honest, no-pressure guidance on your path to homeownership in Northern NJ.