Key Takeaways
- NJHMFA’s Down Payment Assistance Program provides up to $15,000 in 12 counties and up to $10,000 in 9 others for down payment and closing costs.
- The assistance is a 0% loan with no monthly payments, forgiven after five years if you keep living in the home and don’t refinance.
- The Mortgage Reports data: 28.2% of New Jersey home buyers who requested mortgage quotes through our site in 2026 described their credit as fair or poor, vs. 35.1% nationwide.
The New Jersey Housing and Mortgage Finance Agency (NJHMFA) Down Payment Assistance Program offers up to $15,000, or up to $10,000 depending on your county, toward a down payment and closing costs, as of November 2026. The money is a 0% interest, no-payment loan forgiven after five years of living in the home, and you get it with an NJHMFA first mortgage through a participating lender, according to NJHMFA’s First-Time Homebuyer Mortgage Program fact sheet (effective June 17, 2026).
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- NJHMFA down payment assistance at a glance
- How much can you get in your county?
- NJHMFA down payment assistance requirements
- The Mortgage Reports data: How New Jersey home buyers rate their credit in 2026
- NJHMFA income and purchase price limits
- How to apply for NJHMFA down payment assistance
- Pitfalls to watch for
- How we got these numbers
- NJHMFA down payment assistance FAQ
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NJHMFA down payment assistance at a glance
| Feature | NJHMFA DPA (fact sheet effective June 17, 2026) |
| Maximum assistance | Up to $15,000 or up to $10,000, by county |
| Uses | Down payment and/or closing costs |
| Form | 0% interest forgivable loan, no monthly payments |
| Forgiveness | After 5 years of continuous primary residence, if you don't refinance or transfer the first mortgage |
| First mortgage | NJHMFA First-Time Homebuyer Mortgage (30-year fixed, FHA, VA or USDA) |
| First-time buyer | No primary residence owned in past 3 years; waived in Urban Target Areas and for qualified veterans |
| Occupancy | Move in within 60 days of closing |
| How to apply | Through a participating NJHMFA lender; 1-800-NJ-HOUSE |
How much can you get in your county?
The maximum depends only on where the home is.
| Maximum | Counties |
| Up to $15,000 | Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Union |
| Up to $10,000 | Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem, Sussex, Warren |
You can use the assistance only once. It can’t pay closing costs that the seller customarily pays, and it can’t cover an appraisal shortfall, the gap when a home appraises below the contract price.
NJHMFA down payment assistance requirements
- First-time buyer: No ownership interest in a primary residence in the previous three years. If you buy in an Urban Target Area (UTA) or are a qualified veteran, you don’t need to be a first-time buyer, but you can’t own another primary residence at closing.
- Primary residence: The home must be in New Jersey and you must move in within 60 days of closing.
- Property type: Single-family homes, condos, townhomes, manufactured homes permanently affixed to land you own, and two- to four-unit homes where you live in one unit. The home must also meet FHA, VA or USDA requirements.
- Income and price: Your household income and purchase price must be within NJHMFA’s county limits (below).
- Credit and debt: You must meet credit score and debt-to-income requirements. The fact sheet doesn’t list the exact thresholds, so ask your lender.
NJHMFA also offers a conventional option, the HFA Advantage Mortgage Program, which can be paired with the same assistance. Its consumer fact sheet (effective Aug. 14, 2023) lists a 620 minimum FICO score and a down payment generally of 3%. Confirm current HFA Advantage terms with a lender, since that sheet is older.
See if you qualify with a participating lender. Start here
The Mortgage Reports data: How New Jersey home buyers rate their credit in 2026
28.2% of New Jersey home buyers who requested mortgage quotes through The Mortgage Reports in 2026 described their credit as fair or poor, compared with 35.1% nationwide. That matters here because most state assistance programs and the loans paired with them set a minimum credit score, so check this program’s requirements above before you apply.
| Self-reported credit | The Mortgage Reports data: New Jersey home buyers (1,601 requests) | The Mortgage Reports data: all U.S. home buyers (54,285 requests) |
| Excellent | 22.5% | 15.6% |
| Very good or good | 49.2% | 49.3% |
| Fair | 27.5% | 34.2% |
| Poor | 0.7% | 0.9% |
Source: The Mortgage Reports analysis of 1,601 home purchase quote requests submitted through our online mortgage form from Jan. 1 to Nov. 9, 2026. Credit tiers are self-reported; the form offers Excellent, Very good, Good, Fair and Poor, and Very good and Good are counted together. States are assigned by ZIP code. These are people who used our form, not a sample of all buyers.
NJHMFA income and purchase price limits
Income limits are set by county as a share of Area Median Income (AMI): 100% for one- or two-person households and 115% for three or more. Homes in Urban Target Areas use higher limits of 120% and 140%. These figures are effective June 17, 2026.
| Counties | 1 to 2 people | 3+ people | UTA 1 to 2 people | UTA 3+ people |
| Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Hudson, Salem, Warren | $134,600 | $154,790 | $161,520 | $188,440 |
| Essex, Morris, Sussex, Union | $138,400 | $159,160 | $166,080 | $193,760 |
| Bergen, Passaic | $139,100 | $159,965 | $166,920 | $194,740 |
| Mercer | $139,800 | $160,770 | $167,760 | $195,720 |
| Monmouth, Ocean | $140,600 | $161,690 | $168,720 | $196,840 |
| Hunterdon, Middlesex, Somerset | $154,800 | $178,020 | $185,760 | $216,720 |
Purchase price limits vary by county group and number of units. For a one-unit home outside a UTA, they range from $566,355 in Cumberland, Mercer and Warren counties to $1,306,975 in the highest-cost group, which includes Bergen, Essex, Hudson, Middlesex and Monmouth. FHA or VA loan maximums apply if they are lower.
| One-unit price limit (standard) | Counties |
| $566,355 | Cumberland, Mercer, Warren |
| $659,386 | Burlington, Camden, Gloucester, Salem |
| $764,069 | Atlantic, Cape May |
| $1,306,975 | Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union |
How to apply for NJHMFA down payment assistance
You apply through a participating NJHMFA lender, not directly with the agency. The lender originates the first mortgage and requests the assistance with it.
- Check your county’s income limit and the price limit for the home type you want.
- Contact a participating NJHMFA lender (NJHMFA posts the list on njhousing.gov) or call 1-800-NJ-HOUSE.
- Get preapproved for an NJHMFA first mortgage and ask the lender to include the DPA.
- Plan to move in within 60 days of closing and stay at least five years for full forgiveness.
Rates on NJHMFA loans come from the participating lender and depend on your credit, down payment and property. For other statewide and local programs, see our guide to New Jersey first-time home buyer programs and grants.
Pitfalls to watch for
The forgiveness clock runs for five years from closing. If you sell, stop living in the home, refinance or otherwise transfer the first mortgage before then, the assistance is not forgiven. If you think you might refinance soon, ask your lender how that would affect the DPA balance.
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How we got these numbers
We took assistance amounts, forgiveness terms, eligibility rules, income limits and purchase price limits from NJHMFA’s First-Time Homebuyer Mortgage Program consumer fact sheet, effective June 17, 2026, and HFA Advantage details from NJHMFA’s August 2023 fact sheet, both checked Nov. 10, 2026.
NJHMFA down payment assistance FAQ
Sources: NJHMFA, First-Time Homebuyer Mortgage Program Consumer Fact Sheet (effective June 17, 2026); NJHMFA, HFA Advantage Mortgage Program Consumer Fact Sheet (effective Aug. 14, 2023).
