Overview
New Jersey is an expensive place to buy — the statewide median home price is around $470,000 — and it carries the highest property taxes in the country, which makes the state's assistance programs especially valuable for first-time buyers. The New Jersey Housing and Mortgage Finance Agency (NJHMFA) is the hub for help, and recent program expansions have pushed the maximum assistance well above what most states offer.
NJHMFA's Down Payment Assistance program provides up to $15,000 — the exact amount depends on the county — as an interest-free, five-year forgivable second mortgage with no monthly payment. Stay in the home for five years and the balance is forgiven entirely. The assistance must be paired with an NJHMFA first mortgage, a competitive 30-year fixed government-insured loan originated through a participating lender. Buyers must be first-time purchasers (no ownership in the past three years) and meet county income limits.
State Programs
First-Time Homebuyer Mortgage Program
Below-market rate first mortgage (pairs with DPA)NJHMFA Down Payment Assistance Program
Forgivable down payment and closing cost assistanceFirst-Generation Down Payment Assistance
Additional forgivable down payment assistanceFederal 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
New Jersey goes further than most states with a First-Generation Down Payment Assistance program, which adds $7,000 on top of the standard award for buyers who are both first-time and first-generation homebuyers — those whose parents never owned a home. Stacked together, that's up to roughly $22,000 in combined assistance, also structured as an interest-free five-year forgivable second. For families breaking into homeownership for the first time, the combination can cover a meaningful share of the down payment on a starter home.
New Jersey's defining homeowner cost is property tax: at an effective rate around 2.47%, the highest in the nation, the annual bill on a median-priced home can exceed $11,000 — close to $1,000 a month on top of principal and interest. That single line item reshapes affordability, so build it into your budget before you shop, and check each town's rate, since they vary widely. The state's graduated income tax runs up to 10.75% for high earners, but most first-time buyers fall in lower brackets. New Jersey also offers property-tax relief programs, including the ANCHOR benefit, that can return some of the cost to eligible homeowners.
Assistance varies by city as well as county: Newark, Jersey City, Camden, and other municipalities run their own homebuyer programs that can sometimes stack with NJHMFA help. Veterans and active-duty buyers near Joint Base McGuire-Dix-Lakehurst should compare a zero-down VA loan against the state programs. Because New Jersey's high property taxes make the monthly math unforgiving, a HUD-approved housing counselor is worth consulting early — and the homebuyer education course NJHMFA requires is a good first step.
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: June 15, 2026.