Overview
New Jersey's housing market offers opportunities for first-time buyers, with a median home price of approximately $470,000. The New Jersey Housing and Mortgage Finance Agency (NJHMFA) provides the primary state-level assistance through mortgage programs and down payment assistance for qualifying buyers.
The First-Time Homebuyer Mortgage Program is a new jersey housing and mortgage finance agency's key offering for first-time buyers, providing below-market rate 30-year fixed mortgage with up to $15,000 in dpa. This program is designed to reduce the upfront cost barrier that prevents many qualified buyers from purchasing a home. Buyers must complete a HUD-approved homebuyer education course and work with an approved lender.
State Programs
First-Time Homebuyer Mortgage Program
Below-market rate mortgage with DPADown Payment Assistance Program
Forgivable second mortgageFederal Programs Available in New Jersey
These nationwide programs can be combined with New Jersey state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in New Jersey
The Down Payment Assistance Program extends additional support through up to $10,000 as a forgivable loan (forgiven after 5 years). New Jersey has a graduated income tax from 1.40% to 10.75%. Property taxes are the highest in the nation at about 2.47%. NJHMFA DPA up to $15,000 is critical for buyers facing high property costs.
Federal programs complement state offerings in New Jersey. FHA loans require just 3.5% down with flexible credit requirements. VA loans provide zero-down-payment financing for veterans and active-duty military, particularly relevant near Joint Base McGuire-Dix-Lakehurst. USDA loans offer zero-down-payment options in eligible rural areas, which cover significant portions of New Jersey.
Prospective buyers should compare all available options, as combining state and federal programs can dramatically reduce out-of-pocket costs. Working with a HUD-approved housing counselor can help navigate the application process and identify the best program combination for your situation.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.