New Jersey Down Payment Assistance Programs (2026)

Down payment assistance is money from a state, county, city, or nonprofit that helps cover your down payment and closing costs when you buy in New Jersey. Some of it is a grant you never repay, some is a loan that is forgiven after you live in the home for a set number of years, and some is a quiet second mortgage that you settle when you sell or refinance.

Most programs look at four things: your household income compared to the area median, your credit score, whether you have owned a home in the last three years, and the purchase price of the home. You also have to live in the home as your primary residence, and most programs require a short homebuyer education course.

It depends on the structure. A true grant is never repaid. A forgivable loan is erased over a set number of years as long as you stay in the home. A deferred second mortgage is repaid when you sell, refinance, or pay off the first mortgage. A repayable second has a monthly payment from day one.

Yes. FHA is the most common first mortgage under an assistance program because FHA specifically allows the down payment to come from a government agency. Assistance also pairs with conventional HomeReady and Home Possible loans, and with USDA and VA at some agencies.

Most programs cap household income somewhere between 80% and 150% of the area median income, and the cap usually rises with household size. Because the limit is set by county, the same salary can qualify in one county and not the next one over.

Most programs start at 620, some FHA-based programs go to 640, and a handful of manually underwritten paths accept 580. A higher score usually unlocks a larger assistance tier and a better interest rate.

Usually, but 'first-time buyer' almost always means you have not owned a home in the last three years — not that you have never owned one. Some programs waive it entirely for veterans, for buyers in targeted areas, or for certain professions.

Often, yes. Forgivable assistance is written as a second lien that shrinks to zero over a set period, commonly three to ten years of living in the home. If you sell or move out early, you repay a prorated share of what was not yet forgiven.

Most NJHMFA programs run between 3% and 5% of the loan amount, and local city or county programs in the larger metros can add more on top. The exact amount depends on which program you use, your income compared to the county limit, and the loan type behind it.

NJHMFA caps income at 140% of AMI — $140K–$210K depending on county. Limits are published by county and usually rise with household size, so check the county page for the county you are buying in — not the one you live in now.