NJHMFA Down Payment Assistance Program (DPA)
New Jersey Housing and Mortgage Finance Agency (NJHMFA) — the state's official housing finance agency
Amount: Up to $15,000 in most NJ counties, or up to $17,000 in designated "Urban Target Areas"/higher-cost counties. Structured as a 0%-interest, non-amortizing second mortgage with no monthly payments, fully forgiven after 5 years if the borrower stays in the home.
Type: Forgivable second-mortgage down payment/closing cost assistance loan (5-year forgiveness period)
Must be a first-time homebuyer (has not owned a home in the prior 3 years); must obtain the first mortgage through a participating NJHMFA lender (e.g., the Homeward Bound / First-Time Homebuyer Mortgage Program); minimum credit score of 620; household income cannot exceed 140% of Area Median Income (AMI), varying by county and household size; must complete HUD-approved homebuyer counseling; property must be the borrower's primary residence in New Jersey (single-family, condo, townhome, or manufactured home; 2-4 unit properties allowed if owner-occupied).
NJHMFA First Generation Down Payment Assistance Program
New Jersey Housing and Mortgage Finance Agency (NJHMFA)
Amount: Additional $7,000, stackable on top of the base DPA — bringing total potential assistance to $22,000. Same structure: 0%-interest, 5-year forgivable second loan, no monthly payments.
Type: Forgivable second-mortgage supplemental down payment assistance (must be paired with the base DPA and an NJHMFA first mortgage)
Must qualify as a first-time homebuyer under NJHMFA rules AND be a "first-generation" homebuyer — defined as someone whose parents/legal guardians have never held ownership interest in residential real property in any U.S. state or territory (or the applicant was formerly in New Jersey's foster care system); subject to the same 620 minimum credit score and NJHMFA household income/purchase price limits as the base DPA program.
NJHMFA First-Time Homebuyer Mortgage Program (primary mortgage, required companion product)
New Jersey Housing and Mortgage Finance Agency (NJHMFA), delivered through participating private lenders
Amount: Below-market fixed-rate 30-year first mortgage (not a grant itself, but the required underlying loan that unlocks DPA eligibility); an HFA Advantage Mortgage variant is also offered with stricter, lower income limits.
Type: First-mortgage loan product (prerequisite for accessing NJHMFA down payment assistance)
Household income may not exceed 115% of Area Median Income for the standard First-Time Homebuyer Mortgage Program (80% of AMI for the HFA Advantage variant); borrower must be a first-time buyer (no home ownership in the past 3 years, with exceptions for buyers in designated Urban Target Areas); purchase price limits and income limits are set per county and updated annually (most recently in 2026).