In the state of New Jersey, there are several first-time homebuyer assistance programs for which you may qualify. Buying your first home can be quite a challenge. That’s why our firm offers support for any NJ first-time homebuyer seeking a program that adapts to their needs. For example, an affordable mortgage program from the New Jersey Mortgage and Housing Finance Agency ( NJHMFA ).
If you are buying a house in New Jersey for the first time or need legal advice on any real estate matter, do not hesitate to contact us. Our NJ real estate attorney has extensive experience in this matter.
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Table of Contents
Program And Assistance For A NJ First-Time Homebuyer In 2025
Among the assistance programs for first-time homebuyers in New Jersey are the following:
1# NJHMFA First Time Homebuyer Mortgage Program
This program provides a government-backed, fixed-rate loan over 30 years. Additionally, it is compatible with down payment assistance (DPA) also offered by NJHMFA.
To qualify for this program, you must:
- Be a first-time homebuyer or have not owned a home in the last 3 years.
- Meet credit score and debt-to-income (DTI) requirements.
- Purchase a house in New Jersey and use it as your primary residence.
- Meet income and purchase price limits established by NJHMFA.
NJHMFA sets purchase limits based on household size and home location. In certain urban areas designated as “target areas,” price caps are higher.
2# Down Payment Assistance Program (DPA)
The DPA program offers eligible first-time homebuyers up to $15,000 in assistance toward the down payment or closing costs of a home in New Jersey. However, it depends on the county of the property purchased.
The DPA is considered a “forgivable credit”, it has no interest or monthly payments. But, for the forgivable loan to occur, the borrowers must:
- Continuously reside in their property as their primary residence for 5 years from the loan closing date, and
- Do not refinance or transfer the first mortgage.
3# Police And Firemen’s Retirement System Mortgage Program
NJHMFA offers financial assistance to New Jersey professionals, such as police officers and firefighters, in purchasing a home. However, you must:
- Be a member of the Police and Fire Retirement System, and
- Have at least one year of service.
If you meet these requirements, you can access a competitive 30-year loan of up to $766,550. This financing is valid to acquire a house, condominium or land to build, as long as it is your main residence.
It is not a requirement to be a first-time home buyer, although there are funds reserved for these cases. The program involves fees, such as:
- Lender fee of $1,500,
- $325 administration fee, and
- Closing costs.
Additionally, mortgage insurance is also required if the down payment is less than 20%.
4# HFA Advantage Loans
NJHMFA provides “Freddie Mac HFA Advantage Loans” with financing up to 97%. This loan is also DPA compliant.
5# First Generation Down Payment Assistance Program
NJHMFA administers another 5-year forgivable second mortgage through the First Generation Down Payment Assistance Program. This program provides assistance of up to $7,000 to first-generation homebuyers.
If that’s not enough, the aid can be combined with the DPA for up to $22,000 in assistance.
Other Programs Offering Help For First-Time Buyers In New Jersey
While you explore first-time buyer programs in NJ, you may also want to consider other types of mortgage loans in the United States :
- USDA Loans: Require no down payment, but are only available to buyers in rural areas and with a credit score of 640 or higher.
- FHA Loans: For those with a low credit score or limited savings. This loan requires a 3.5% down payment requirement and a minimum score of 580.
- Good Neighbor Next Door Program: Offers low down payment requirements in areas designated by the United States Department of Housing and Urban Development (HUD), with the possibility of saving up to 50% on the purchase price.
- VA Loans: Available to military members and veterans, with no down payment required.
Homeward Bound mortgage
This program is similar to other programs aimed at a first-time buyers in New Jersey. This is because it provides flexible eligibility criteria and a 30-year fixed rate government-backed loan. Furthermore, this aid can be combined with the DPA.
It should be noted that families with higher incomes may find the higher income limits offered by the return home program more attractive.
Do you know what is a 40-year mortgage in the United States? Explore more about this mortgage loan in our blog.
How To Apply For A First-Time Homebuyer Assistance Program In NJ?
There are 10 steps to follow when requesting an assistance program for these buyers:
- Evaluate finances.
- Choose the type of mortgage (it can be fixed or variable).
- Get a quote from the lender.
- Get pre-approved for the mortgage.
- Find a real estate agent or attorney.
- Buy the house.
- Hire an inspector to perform your home inspection in NJ .
- Prepare to make an offer.
- Negotiate closing costs.
- Find homeowner’s insurance and close the purchase. Learn more about this in: “Homeowner’s Insurance vs. Landlord’s Insurance.”
For a buyer, the closing represents the final step of the home buying process. This is where the buyer obtains the NJ property deed, real estate title and other important documents.
How To Apply For A Loan From The NJHMFA Program?
To apply for a loan from NJHMFA’s First-Time Home Buyer Mortgage Program, you must:
- Contact a lender associated with the NJHMFA on the official website, or
- Request help from our lawyer Carolina T. Curbelo who will help you step by step in this area.
Benefits Of Receiving Assistance For First-Time Homebuyers In New Jersey
A first-time homebuyer in New Jersey enjoys certain benefits, such as:
- Financial assistance: In state and local programs, along with nonprofit organizations and help with down payment or closing costs.
- Possibility of being eligible for new assistance programs: Such as New American Funding ‘s “The Pathway to Homeownership.” This program provides exclusive financial assistance to first-time homebuyers in NJ.
- Educational Resources: Access to valuable information provided by government agencies and non-profit organizations to facilitate the purchasing process.
- Loan options with low or no down payments: Through loans such as FHA, VA and USDA.
Who Is Eligible To Be A First-Time Homebuyer In New Jersey?
You qualify as a first-time homebuyer if you are someone who has not owned a primary residence for the last 3 years in NJ.
This process can be overwhelming, so we encourage you to learn about the different types of houses in New Jersey before deciding on one. Similarly, you may be interested in reviewing what you shouldn’t do when applying for a mortgage.
What Properties Are Eligible To Qualify For First-Time Homebuyer Assistance Programs In New Jersey?
Like buyers, properties must also meet certain requirements.
- Property must be located in the state of New Jersey.
- Properties must comply with the regulations of the applicable insurer, such as FHA, VA or USDA.
- It can be any of the following:
- Single family Home,
- Condominium,
- Townhome,
- Manufactured, or
- Mobile home but must be permanently attached to the borrower’s land.
- A two- to four-family dwelling unit of which one unit is to be occupied by the borrower as a primary residence.
- Properties located in Urban Target Areas (UTAs) allow for higher income levels.
You may be interested in reading our blog on townhouses vs. single-family homes”.
How To Prepare To Become A First-Time Home Buyer?
As you prepare to take the final step as a first-time homebuyer, we advise you to keep these essential steps in mind:
- Conduct detailed research. Before making any purchasing decision, it would be wise to conduct extensive research. Use the NJHMFA website to locate affiliated lenders near you or contact us in advance.
- Improve your credit history. This involves making timely payments, reducing outstanding balances, and correcting potential errors on your credit report.
- Compare offers from lenders. Research offers from different mortgage lenders to ensure you get the most favorable terms.
By following these steps, you will be better prepared to make decisions and make the most of the opportunities available in the real estate market.
Our blog with the requirements to apply for a mortgage in New Jersey explains in depth what you will need.
What Is The Definition Of A First Generation Buyer?
A first-generation homebuyer refers to a first-time homebuyer who meets the following conditions:
- Is an individual whose parents or legal guardians do not have any present ownership interest in residential real property,
- Your spouse, common-law partner, and all members of your household have not had an ownership interest in a primary residence in the last 3 years, or
- Is an individual who has been placed in foster care in the state of New Jersey at some point.
It should be noted that for points “A” and “B” to apply, the individual’s relatives must have no interest in their primary property either inside or outside the United States (in any state).
What Credit Score Do You Need To apply for A First-Time HomeBuyer Program In NJ?
Although credit scores can vary, first-time homebuyers are advised to have a FICO score of 620 or higher. You should keep in mind that buying a home in New Jersey requires good credit.
In fact, credit scores of 740 or higher are highly regarded by lenders. This could get you lower mortgage rates.
Can I Buy A House In New Jersey With No Down Payment?
Only a small percentage of homebuyers in New Jersey are eligible for a no-money-down mortgage loan. However, there is a larger group of borrowers who may be able to qualify for a mortgage loan with a minimum down payment, typically between 3% to 3.5%.
Today, conventional home loans can allow down payments as low as 3%, backed by Freddie Mac and Fannie Mae.
Additionally, the FHA program makes it easy to purchase homes in New Jersey with a down payment of 3.5%. These options offer purchasing opportunities with low down payments.
In New Jersey there are homes with underground fuel tanks that can affect your buying or selling process. Find out more in: “Buying or selling a home with an underground oil tank”.
What’s It Like Buying A Home In New Jersey’s Major Cities?
In New Jersey cities, home prices have seen an increase in recent months. For example, in Jersey City and Newark, home prices increased significantly, while statewide, they increased by 9.5%. Below, we detail these increases:
Jersey City
At the end of 2023, the median home price in Jersey City was $717,500, posting an annual increase of 14.1%, according to Realtor.com. Additionally, to purchase a house with this average price, the down payment options could be:
- $21,525 with 3% down payment, and
- $143,500 with 20% down payment.
Currently, it is unclear if Jersey City offers down payment assistance. Additionally, loan programs and DPA could vary widely.
Paterson City
Already ending 2023, the average price of a home in Paterson was $349,900, showing an annual decrease of 4.1%. Therefore, if you are considering purchasing a home at this price, your down payment options could be:
- $10,497 with 3% down, or
- $69,980 with 20% down payment.
Information about a down payment assistance program in Paterson is not updated online. For current details, you can call (973) 321-1600.
Newark
The median listing price for a home in Newark was $399,000, an annual increase of 12.4%. Therefore, the initial payment options could be:
- $11,970 with 3% down payment, and
- $79,800 with 20% down payment.
Although Newark does not appear to have its own assistance programs, being located in Essex County, there are certain programs available to you.
Frequently Asked Questions Regarding A Program For A NJ First-Time Homebuyer
New Jersey offers several programs for first-time property buyers. However, the most notable are those of NJHMFA, DPA and HFA Advantage.
Typically, the average age of first-time home buyers in New Jersey is 45 years old. On a national level, the first-time buyer average age is 33.
Yes, it can be a good idea to have solid information for a successful home purchase. First-time home buyer classes are essential, even required in some government-backed loan programs.
You can also directly contact our knowledgeable attorney and her legal team who have been advising buyers throughout the state for more than 10 years. This initial contact does not commit you to anything and can be very useful.
No, in New Jersey there is no mortgage credit certificate program for first-time homebuyers.
It is not necessary to be a U. S. citizen to buy a home or get help from a program to do so. However, the buyer must be a lawful permanent resident. That is, being a Green Card holder.
In our blog “Can an illegal immigrant buy a house?” ” We delve into this matter giving you all the keys.
Why Do First-Time Homebuyers In New Jersey Need Help?
Buying a house is a big step. Furthermore, knowing where to live is one of the most important decisions in the lives of property buyers.
If you are a first-time home buyer, it is more than advisable to consult with a real estate attorney, as an attorney will be best suited for you to have a good understanding of the current local laws.
Plus, it can tell you about New Jersey first-time homebuyer assistance programs and other benefits you may not know about. They can also help you draft or review any other contracts or purchase agreements and address any potential legal issues.
The Curbelo Law firm has a highly trained and experienced attorney to help you get on the path to the desired home. If you are searching for a NJ first-time homebuyer program don’t hesitate to contact us today. We will assist you with your real estate requirements.
FULL LEGAL REPRESENTATION AND COUNSELING
FLAT FEE RATE
