New Jersey Housing and Mortgage Finance Agency’s (NJHMFA) First-Time Homebuyer Mortgage Program provides a competitive 30-year fixed-rate government insured loan for eligible homebuyers purchasing a home in New Jersey. The First Time Home Buyer Mortgage Program can be coupled with the NJHMFA
Down Payment Assistance Program (DPA).
Down Payment Assistance
NJHMFA’s Down Payment Assistance Program (DPA) provides qualified homebuyers with $10,000 toward
downpayment and/or closing costs. The DPA is a $10,000 forgivable loan with no interest and no monthly
payments. The DPA is forgiven if the Borrower continuously resides in the premises as his/her principal
residence for five years from the loan closing date and does not refinance or otherwise convey the first mortgage.
• Borrower(s) must purchase and occupy a residential
home in New Jersey.
• Borrower(s) must be a first-time homebuyer, defined
as someone who has not had an ownership interest in
their primary residence during the previous three years.
• Borrowers of homes located within Urban Target Areas
or Qualified Veterans do not need to be first-time home
buyers, but must not own another primary residence
• Property must be occupied as the Borrower’s primary
residence within 60 days of closing.
• Borrower(s) must meet credit score and
• The property must be located in the state of New Jersey.
• Properties must comply with any and all guidelines of
the applicable insurer/guarantor such as FHA,
VA or USDA.
• The property must be a single-family home,
condominium, townhome, manufactured or mobile
home, which is permanently affixed to real property
owned by the Borrower, or a two- to four-family dwelling
unit of which one unit is to be occupied by the Borrower
as his or her principal residence.
• Properties located in an Urban Target Area (UTA)
are eligible for higher income limits. To determine if
the proposed property is within a UTA, visit the Site
and follow the Site Evaluator Tutorial
DOWN PAYMENT/CLOSING COSTS
Down payment requirements are based on the mortgage
insurer or guarantor’s guidelines. Borrower may fund down
payment and closing costs through NJHMFA’s Down Payment
Assistance Program, which provides eligible homebuyers
purchasing a home in New Jersey with $10,000. FHA
requires 3.5% down payment. VA, and USDA may allow
for no down payment.
Income limits are determined by the county of the purchase
property. Please reference the First Time Home Buyer with
DPA handout for additional details.
Call an NJHMFA participating lender for current loan term and
rates. The list of participating lenders can be found online at
HOW DO I APPLY?
To apply for the NJHMFA First-Time Homebuyer Mortgage
Program, please contact a participating NJHMFA lender.
The list of participating lenders can be found online at