Key Takeaways
-
NJHMFA offers up to $15,000 in forgivable down payment assistance.
-
First-generation buyers may qualify for an additional $7,000 in help.
-
Local programs in Newark, Trenton, and Camden County offer up to $25,000 in assistance.
-
Federal mortgage options like FHA and VA loans are also available in New Jersey.
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:
- Improve your credit score to secure better loan terms.
- Get pre-approved to define your budget.
- Compare lenders who offer NJHMFA-backed loans.
- Check program eligibility by income, location, and property type.
- 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.
FAQs: New Jersey Home Buyer Programs
No SSN required. Zero impact to credit. Your Information is never sold.