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First-time buyers

Down Payment Assistance in New Jersey

You may need far less cash than you think. Here are the programs South Jersey buyers actually use, who qualifies, and how to apply — with free help from me.

Up to $22,000 in assistance

Standard NJHMFA DPA ($15,000) plus the first-generation add-on ($7,000) can cover most or all of a typical South Jersey down payment.

Programs available to South Jersey buyers

NJHMFA Down Payment Assistance (DPA)

Up to $15,000 toward down payment and closing costs as an interest-free, no-payment second loan that is forgiven after five years of living in the home. Must be paired with an NJHMFA first mortgage.

Who it's for: First-time buyers (no ownership in the last 3 years) buying a primary residence in New Jersey.

NJHMFA First-Generation Down Payment Assistance

An additional $7,000 on top of the standard DPA for buyers whose parents have not owned a home.

Who it's for: Buyers who qualify for standard DPA and meet the first-generation definition.

FHA loans

3.5% down with more flexible credit requirements. Gift funds from family are allowed for the full down payment.

Who it's for: Buyers with limited savings or credit still being rebuilt.

VA loans

0% down, no monthly mortgage insurance, and competitive rates for eligible service members, veterans and surviving spouses.

Who it's for: Veterans, active duty, National Guard and Reserve members who meet service requirements.

USDA Rural Development

0% down financing in eligible areas — which includes parts of Atlantic, Cumberland and Cape May counties.

Who it's for: Buyers under program income limits purchasing in a designated eligible area.

Police & Fire Retirement System (PFRS) mortgage

Competitive fixed-rate financing for eligible New Jersey police officers and firefighters with one year of service.

Who it's for: Active PFRS members.

General eligibility

  • First-time buyer — you have not owned a home in the past three years (waived in some designated areas and for veterans)
  • Household income within the county limit for the program
  • Purchase price within the program's limit for Atlantic, Cape May, Cumberland, Gloucester or Camden county
  • The home must be your primary residence
  • Completion of an approved homebuyer education course
  • Financing through a participating NJHMFA lender

How to apply

  1. 1Confirm your basicsIncome, credit and the counties you're shopping in.
  2. 2Get matched with a participating lenderNot every lender offers NJHMFA — I'll point you to ones that do.
  3. 3Complete homebuyer educationA short approved online course that satisfies the requirement.
  4. 4Get pre-approved with the assistance layered inYour letter should reflect the DPA so sellers see clean financing.
  5. 5Shop with a real cash-to-close numberWe tour knowing exactly what you'll need at the table.

Questions buyers ask

Do I have to pay the assistance back?

Standard NJHMFA DPA is a five-year forgivable second loan with no interest and no monthly payment. If you sell or refinance before five years, a prorated portion may be repayable.

Can I use assistance and a gift from family?

Usually yes. Gift funds are permitted on most programs and can be layered with assistance, though the lender will document the source.

What credit score do I need?

Most assistance programs look for roughly 620 or higher, though the exact floor depends on the first mortgage type and lender overlays.

Does assistance make my offer weaker?

Not when it's presented properly. A clean, fully underwritten pre-approval that already accounts for the assistance reads the same to a seller as any other financed offer.

Program amounts, income limits and rules are set by the agencies and change periodically. Verify current terms with NJHMFA and your lender. This page is informational and is not a loan commitment.