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Down Payment Assistance in New Jersey: Programs, Limits and How to Apply

In New Jersey, the New Jersey Housing and Mortgage Finance Agency (NJHMFA) offers a down payment assistance (DPA) second loan of up to $15,000, set by county. It has no interest and no monthly payment, and it is forgiven after five years if you live in the home as your principal residence. It must be paired with an NJHMFA first mortgage from a participating lender.

Facts read from the agency pages on October 15, 2026. Programs, limits and funding change, so confirm with the agency and a participating lender before you rely on a figure.

Who runs down payment assistance in New Jersey?

New Jersey Housing and Mortgage Finance Agency (NJHMFA)

Which New Jersey programs offer down payment help?

Down Payment Assistance (DPA)

Administered by NJHMFA.

What it offers: Up to $15,000, based on the county of the property. The agency's consumer fact sheet lists $15,000 or $10,000 by county. The funds can go toward down payment and closing costs.
Repayment: An interest-free second loan with no monthly payment, forgiven if you live in the home as your principal residence for five years. The fact sheet says the DPA may be used by a borrower one time.
Works with: An NJHMFA first mortgage: a 30-year fixed-rate government-insured loan (FHA, VA or USDA) from a participating lender. The agency also lists its Homeward Bound and HFA Advantage mortgages as able to be combined with the DPA.
Who qualifies: First-time buyer, meaning no ownership interest in your primary residence during the previous three years. Buyers in an Urban Target Area, and qualified veterans, do not need to be first-time buyers but must not own another primary residence at closing. You must occupy the home as your primary residence within 60 days of closing and meet credit score and debt-to-income requirements. The agency pages we read give no minimum credit score for the DPA.
Availability: No page we read says the program is closed, paused or out of funds.

First Generation Down Payment Assistance

Administered by NJHMFA.

What it offers: An additional $7,000 toward down payment and closing costs, on top of the DPA, for a combined total of $17,000 to $22,000 depending on county.
Repayment: The same structure as the DPA: an interest-free second loan with no monthly payment, forgiven after five years of living in the home as your principal residence.
Works with: It must be paired with an NJHMFA first mortgage and the DPA.
Who qualifies: A first-time buyer whose parents or legal guardians do not have a present ownership interest in residential real property, or a person who has at any time been placed in foster care in New Jersey. The agency's program page was revised 10/05/2026. Its PDF fact sheets for this program carry older dates (10/04/2023 and 08/26/2024), so confirm the $7,000 amount with a participating lender.
Availability: No page we read says the program is closed, paused or out of funds.

What are the income and price limits in New Jersey?

Each limit below is the range the agency published, as of the date shown.

Limit	Range	In effect	Source
Household income limits, DPA and NJHMFA first mortgages	$134,600 to $216,720, depending on county and household size. Urban Target Areas have higher limits.	Fact sheet updated 06.17.26	NJHMFA First-Time Homebuyer fact sheet (PDF)
Purchase price limit, standard one-unit home	$566,355 to $1,306,975, depending on county. One-unit limits in Urban Target Areas run from $692,211 to $1,597,413.	06.17.26	NJHMFA First-Time Homebuyer fact sheet (PDF)

How do I apply for down payment assistance in New Jersey?

Fill out the NJHMFA request form, and the agency pairs you with up to three participating lenders in your area. You can also call 1-800-NJHOUSE.
Apply through a participating lender. NJHMFA says loan applications are made through its participating private lenders, and it publishes a lender list.
Ask the lender to confirm your county's DPA amount, the income and purchase price limits for your county, and whether your home is in an Urban Target Area.
Keep your own records of your income, savings and any gift funds so your lender can document the source of each dollar.

Can I combine New Jersey assistance with gift funds or employer help?

Gift funds

The NJHMFA pages we read do not say whether gift funds can be used alongside the DPA. Ask your participating lender, and ask for the answer in writing.

Employer help

The NJHMFA pages we read do not address employer assistance. Ask your participating lender before you rely on it.

Other assistance

NJHMFA lists the First-Time Homebuyer, Homeward Bound and HFA Advantage mortgages as able to be combined with the DPA, and describes the First Generation program as in addition to the DPA. Its fact sheets say DPA funds may not be used to cover closing costs customarily paid by the seller or an appraisal shortfall. NJHMFA's fact sheet for its Police and Firemen's Retirement System mortgage says the agency's DPA cannot be used with that program.

Gift rules also depend on your loan type. See what cash to close includes for how down payment and closing costs add up, and the down payment assistance guide for how gifts, employer help and assistance can fit together.

Which sources does this page rely on?

Every figure above comes from the agency pages below.

Source	Date
NJHMFA homebuyer programs hub	Page revised 10/05/2026, read October 15, 2026
NJHMFA First-Time Homebuyer fact sheet	Updated 06.17.26, read October 15, 2026
NJHMFA First Generation fact sheet	Updated 10.04.23, read October 15, 2026
NJHMFA participating lender list	Read October 15, 2026

Frequently asked questions

How much down payment assistance can I get in New Jersey?

NJHMFA says its DPA provides up to $15,000 based on the county of the property you buy. Its fact sheet lists $15,000 or $10,000 by county. First-generation buyers can add $7,000, for a combined $17,000 to $22,000.

Do I have to pay back New Jersey's down payment assistance?

The DPA is an interest-free second loan with no monthly payment. NJHMFA forgives it if you live in the home as your principal residence for five years.

Do I have to be a first-time buyer to get New Jersey DPA?

Generally yes. NJHMFA defines a first-time buyer as someone with no ownership interest in their primary residence during the previous three years. Buyers in an Urban Target Area and qualified veterans do not need to be first-time buyers, but they must not own another primary residence at closing.

How do I apply for New Jersey down payment assistance?

You do not apply to NJHMFA directly for the loan. You fill out the agency's request form and it pairs you with up to three participating lenders, then you apply through a lender.

Can I use gift funds or employer help with New Jersey DPA?

The NJHMFA pages we read do not say. Ask your participating lender whether your gift or employer benefit is allowed with the loan you choose.

Down payment assistance in other states

Back to the down payment assistance guide.

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Disclosure: This content is for informational purposes only and does not constitute financial, legal, mortgage, or tax advice. Program rules vary by lender, location and loan. Dreamfund is not affiliated with any housing agency named here. Consult a licensed mortgage professional for guidance specific to your situation. Dream Fund AI LLC does not guarantee any savings outcome, loan approval, or home purchase result.