Buying a home in New Jersey for the first time can feel daunting—especially with rising home prices and limited affordability. As of early 2025, the median home sale price in New Jersey sits well above the national average. However, the state offers a range of New Jersey first-time homebuyer programs to help offset these costs. Whether you’re searching for down payment assistance, low-interest mortgage options, or local incentives, NJ and its municipalities provide valuable support to help first-time buyers achieve homeownership.

Overview of New Jersey First-Time Homebuyer Programs

Program Name	Type	Down Payment Help	Key Benefit
NJHMFA First-Time Homebuyer Mortgage	Statewide	Up to $15,000	Offers fixed-rate government-backed loans
HFA Advantage Mortgage	Statewide	Up to $15,000 (if first-time)	97% financing, includes repeat buyers
Police & Firemen’s Retirement System Mortgage	Statewide	No	Offers high loan limits and land financing
Live Newark Program	City-specific	Up to $20,000	Fully forgivable after 10 years
Trenton First-Time Buyer Program	City-specific	Up to $15,000	No repayment required after 5 years
Camden County Program	County-specific	Up to $25,000	Covers a wide range of property types

NJHMFA First-Time Homebuyer Mortgage

This statewide option offers 30-year fixed-rate FHA, VA, or USDA loans for eligible buyers. When combined with the NJHMFA Down Payment Assistance Program, borrowers may receive up to $15,000 toward down payment and closing costs.

Eligibility:

• Must purchase a primary residence in NJ
• First-time buyer or buying in a targeted area
• Meet income, credit, and price limits

Benefits:

• Supports 1–4 unit homes
• Flexible property types

Considerations:

• Must use an NJHMFA-approved lender
• Loan must be government-backed

HFA Advantage Mortgage (Freddie Mac-Backed)

This program allows up to 97% financing and is available to both first-time and repeat buyers.

Eligibility:

• Minimum 620 credit score
• Income and DTI limits apply by county

Benefits:

• Manufactured homes allowed
• Great for buyers without down payment needs

NJHMFA Police & Firemen’s Retirement System Mortgage

Designed for public safety professionals, this program offers competitive rates and large loan limits.

Eligibility:

• One year of PFRS membership required
• 15% down payment
• Owner-occupied for full loan term

Benefits:

• Up to $766,550 loan
• Can finance land or 2-family homes

Drawbacks:

• Monthly maintenance fee
• High down payment required

Down Payment Assistance Programs

NJHMFA Down Payment Assistance Program

This provides up to $15,000 in forgivable assistance. The second mortgage is interest-free and forgiven after five years of occupancy.

First-Generation Down Payment Assistance

Adds an extra $7,000 for eligible buyers—stackable with the $15,000 program for a total of $22,000.

Program	Amount	Forgiveness Period	Must Combine With
NJHMFA DPA	$15,000	5 years	NJHMFA mortgage
First-Gen DPA	$7,000	5 years	NJHMFA mortgage

Local First-Time Buyer Programs

Newark – Live Newark Program

• Up to $20,000 forgivable over 10 years
• Available for multi-family homes
• Must be under contract on a Newark property

Trenton – First-Time Homebuyer Program

• Up to $15,000 in matching funds and closing cost help
• Forgiven after 5 years
• Housing counseling required

Camden County – First-Time Homebuyer Program

• Up to $25,000 based on income
• Forgiveness period of 5 or 10 years
• Must contribute at least 3% of the purchase price

National Loan Programs Available in NJ

While New Jersey offers strong state and local support, you can also explore federal mortgage options:

Loan Type	Key Feature
FHA Loan	3.5% down, flexible credit
VA Loan	0% down for military/veterans
USDA Loan	0% down for rural areas
Good Neighbor Next Door	50% off home price for teachers, police, EMTs

How to Apply for New Jersey First-Time Buyer Assistance

To get started:

1. Improve your credit score to secure better loan terms.
2. Get pre-approved to define your budget.
3. Compare lenders who offer NJHMFA-backed loans.
4. Check program eligibility by income, location, and property type.
5. Work with a real estate agent who knows these programs well.

Bottom Line

If you’re buying a home in New Jersey for the first time, you have more help available than you might expect. With state-supported loans, city-level incentives, and federal options, New Jersey first-time homebuyer programs can significantly lower your upfront costs and make homeownership more accessible.

 

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