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 homebuyers (no homeownership in the past three years) or buyers in targeted areas (repeat buyers eligible in these zones).
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $152,600 for a 1-2 person household in Bergen County as of 2025).
• Minimum credit score of 620 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $679,900 (non-targeted areas) or $831,100 (targeted areas).

Down Payment Assistance (DPA):

Benefits: Offers up to $15,000 as a forgivable second loan (forgiven after 5 years if the home remains owner-occupied) for down payment and closing costs; available with NJHMFA first mortgages.
Eligibility: Must use an NJHMFA first mortgage; income and purchase price limits apply (same as First-Time Homebuyer Program).

Road to Recovery Program:

Description: Provides up to $65,000 as a grant for down payment, closing costs, and counseling for first-time buyers earning below 80% AMI; targets urban and underserved areas with foreclosure recovery focus.
Requirements: Income capped at 80% AMI (e.g., $82,600 in Essex County for a family of four); must pair with an NJHMFA mortgage; limited funding.

Local Programs:

Newark

Newark Homeownership Revitalization Program: Offers up to $25,000 as a deferred loan (0% interest, due upon sale or refinance) for first-time buyers; income must be at or below 80% AMI (e.g., $77,350 for a family of four).

Jersey City

Jersey City First-Time Homebuyer Program: Provides up to $20,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income capped at 80% AMI; targets low-income neighborhoods.

Trenton

Trenton Down Payment Assistance: Offers up to $15,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 20% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with NJHMFA loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural New Jersey areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.