Down Payment Assistance
Down Payment Assistance in New Jersey (2026)
New Jersey homebuyers can access up to $15,000 in down payment assistance through the New Jersey Housing and Mortgage Finance Agency (NJHMFA). On the state's $569,314 median home price, that covers roughly 13% of a standard 20% down payment. New Jersey has 2 state DPA programs total, including a first-generation homebuyer option (extra help for buyers whose parents never owned a home).
New to this? Quick definitions
- DPA —
- down payment assistance. Money — as a grant or loan — that helps cover the upfront cash you'd otherwise need to buy a home.
- Grant vs. loan —
- a grant is money you never repay. A loan (forgivable, deferred, or repayable) can come with strings attached, even at 0% interest.
- Forgivable loan —
- the balance is wiped out over time if you stay in the home — but it's still a real loan until then, and selling or refinancing early can trigger repayment.
- Deferred loan (silent second) —
- a second loan on your home with no monthly payments, often called a "silent second" because you won't notice it until you sell, refinance, or pay off your first mortgage — that's when it comes due.
- AMI —
- Area Median Income. The midpoint household income for your county, used to set eligibility — programs list limits as a percentage of AMI (e.g. 80% of AMI).
- Income limit —
- the maximum household income you can earn and still qualify, based on where you live and how many people are in your household.
- Purchase price cap —
- the maximum home price a program will help you buy — homes priced above the cap don't qualify, even if your income does.
Do you likely qualify?
Income and purchase-price limits for the Smart Start Down Payment Assistance are set by county and household size — find your county in the programme terms below.
Primary Program: Smart Start Down Payment Assistance
maximum assistance
Forgiven after 5 years if you remain in the home as your primary residence (the home you actually live in, not a rental or second home). Sell, move out, or refinance before then, and you may owe the balance back.
- Administering Agency
- New Jersey Housing and Mortgage Finance Agency (NJHMFA)
- Forgiveness Term
- 5 years
Additional New Jersey DPA Programs
Smart Start Plus First-Generation Homebuyer Program
Forgivable Loan$22,000
Forgiven over time if you remain in the home as your primary residence (the home you actually live in, not a rental or second home).
Apply / Learn MoreHow Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Mistakes first-time buyers make
- Assuming you don't qualify without actually checking the income limit for your county and household size.
- Treating a "forgivable" loan as free money — it can still come due in full if you sell or refinance before the forgiveness term ends.
- Stacking programs incorrectly, or assuming state and local programs combine automatically without confirming with your lender.
- Skipping the required homebuyer education course, which can delay or disqualify your application at closing.
Pro tips
- Talk to a HUD-approved housing counselor first — it's free and they know every program you may qualify for, not just the state's.
- Apply for mortgage pre-approval alongside your DPA program application; most DPA funds are disbursed through an approved lender at the same closing.
- Check local city and county programs in addition to the state program above — many are stackable and cover different costs.
- Ask exactly what triggers repayment on any loan-based assistance before you sign, not after.
Down Payment Calculator
Down Payment Planner
New Jersey median pre-loaded
Your Savings Plan
Timeline
19.0 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →New Jersey Assistance Programs, Term by Term
New Jersey Housing and Mortgage Finance Agency (NJHMFA)
NJHMFA Down Payment Assistance Program (Smart Start DPA)
forgivable second (New Jersey Housing and Mortgage Finance Agency (NJHMFA), retrieved 2026-09-14)
- Assistance
- up to $15,000 based on county: $15,000 in Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset and Union counties; $10,000 in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem, Sussex and Warren counties
- Repayment
- 0% interest, no monthly payments; forgiven after the borrower continuously occupies the home as principal residence for five years from closing and does not refinance or convey the first mortgage; unforgiven funds due from net equity proceeds on sale, refinance or ceasing occupancy; one DPA per person per lifetime
- Income limit
- Set by the paired first-mortgage program and county. First-Time Homebuyer Program (effective 06.17.26): $134,600 (1-2 person) / $154,790 (3+) in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Hudson, Salem, Warren up to $154,800 / $178,020 in Hunterdon, Middlesex, Somerset; higher limits in Urban Target Areas. Homeward Bound: $161,520–$185,760 by county. HFA Advantage: county limits (e.g. $161,520 Atlantic, $166,920 Bergen)
- Purchase price limit
- First-Time Homebuyer Program 1-unit limits (effective 06.17.26): $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)
- First-time buyer rule
- Yes — no ownership interest in a primary residence in the previous three years; Qualified Veterans and buyers in Urban Target Areas exempt (but must not own another primary residence at closing)
- Minimum credit score
- 620 minimum representative score
- Homebuyer education
- All occupying borrowers must complete HUD-approved housing counseling (HFA Advantage borrowers may use Freddie Mac CreditSmart Homebuyer U); certificate issued less than one year before closing
- First mortgage it pairs with
- Must be paired with an NJHMFA first mortgage: First-Time Homebuyer Mortgage Program (FHA/VA/USDA), Homeward Bound (government-insured) or HFA Advantage (Freddie Mac conventional); not available with the Police and Firemen's Retirement System (PFRS) mortgage
Smart Start Plus First-Generation Homebuyer Program (First Generation DPA)
forgivable second (New Jersey Housing and Mortgage Finance Agency (NJHMFA), retrieved 2026-09-14)
- Assistance
- $7,000 on top of the Smart Start DPA — total loan $22,000 in Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Union; $17,000 in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem, Sussex, Warren (amounts include the Smart Start dollars)
- Repayment
- 0% interest, no monthly payment, five-year forgivable term; forgiven if borrower occupies as principal residence for five years and does not refinance or convey the first mortgage
- Income limit
- Set by the paired first-mortgage program and county. First-Time Homebuyer Program (effective 06.17.26): $134,600 (1-2 person) / $154,790 (3+) in Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Hudson, Salem, Warren up to $154,800 / $178,020 in Hunterdon, Middlesex, Somerset; higher limits in Urban Target Areas. Homeward Bound: $161,520–$185,760 by county. HFA Advantage: county limits (e.g. $161,520 Atlantic, $166,920 Bergen)
- Purchase price limit
- First-Time Homebuyer Program 1-unit limits (effective 06.17.26): $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)
- First-time buyer rule
- Yes — must be a first-time homebuyer AND a first-generation homebuyer (parents/legal guardians own no residential real property anywhere, and spouse/domestic partner has had no principal-residence ownership in the prior 3 years; or anyone ever placed in NJ foster care, an emancipated youth, or a McKinney-Vento homeless unaccompanied youth)
- Minimum credit score
- 620 minimum representative score for all borrowers
- Homebuyer education
- All occupying borrowers must complete HUD-approved housing counseling
- First mortgage it pairs with
- Must be paired with an NJHMFA first mortgage: First-Time Homebuyer Mortgage Program (FHA/VA/USDA), Homeward Bound (government-insured) or HFA Advantage (Freddie Mac conventional); not available with the Police and Firemen's Retirement System (PFRS) mortgage; cannot be used with Homeward Bound or HFA Advantage when the first-time homebuyer requirement is not met; no gifts of equity; family-member transactions prohibited
The First Mortgage and Closing Taxes This Assistance Has to Cover in New Jersey
Realty Transfer Fee (RTF), plus the supplemental Graduated Percent Fee on transfers over $1 million
New Jersey charges the seller a Realty Transfer Fee on recording a deed, calculated in brackets per $500 of consideration (roughly 0.4% to 1.21%), with reduced rates for qualifying seniors, blind/disabled sellers and affordable housing. Since July 10, 2025 sales over $1 million also owe a seller-paid Graduated Percent Fee of 1% to 3.5% of the entire price. (N.J.S.A. 46:15-5 et seq. (Realty Transfer Fee Act, P.L. 1968, c. 49); N.J.S.A. 46:15-7; Graduated Percent Fee amended by P.L. 2025, c. 69). (New Jersey Department of the Treasury, Division of Taxation, retrieved 2026-09-14) Under that schedule a $569,314 sale owes $4,860, which the statute puts on the seller.
New Jersey Housing and Mortgage Finance Agency (NJHMFA): First-Time Homebuyer Mortgage Program
First-Time Homebuyer Mortgage Program is the first-mortgage programme run by New Jersey Housing and Mortgage Finance Agency (NJHMFA). (New Jersey Housing and Mortgage Finance Agency, retrieved 2026-09-14) Its purchase-price limit is $566,355 (1-unit, non-Urban Target Area; varies by county: $566,355 (Cumberland, Mercer, Warren) to $1,306,975 (Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union); FHA/VA maximum mortgage amounts prevail if more restrictive), so a $569,314 home is above it and would not qualify at that limit. (New Jersey Housing and Mortgage Finance Agency, retrieved 2026-09-14) The income limit is $134,600 (1-2 person household, statewide (non-UTA) limits, lowest tier (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Hudson, Salem, Warren); ranges to $154,800 (Hunterdon, Middlesex, Somerset); 3+ person $154,790-$178,020; Urban Target Areas higher ($161,520-$185,760 for 1-2 persons)). (New Jersey Housing and Mortgage Finance Agency, retrieved 2026-09-14) Down payment help comes through NJHMFA Down Payment Assistance Program (DPA); First Generation Homebuyer DPA: Up to $15,000 toward down payment and/or closing costs based on county ($15,000 in Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Union; $10,000 elsewhere); 0% forgivable loan forgiven after five years of continuous principal residence. First Generation Homebuyer coupled with DPA: up to $22,000.. (New Jersey Housing and Mortgage Finance Agency, retrieved 2026-09-14) Minimum credit score: 620. (New Jersey Housing and Mortgage Finance Agency, retrieved 2026-09-14)
Frequently Asked Questions
What down payment assistance is available in New Jersey?
New Jersey's primary DPA program is the Smart Start Down Payment Assistance, administered by the New Jersey Housing and Mortgage Finance Agency (NJHMFA). It provides up to $15,000 as a forgivable loan. Forgiven after 5 years if you remain in the home as your primary residence (the home you actually live in, not a rental or second home). Sell, move out, or refinance before then, and you may owe the balance back. Additional programs include Smart Start Plus First-Generation Homebuyer Program.
How much down payment do I need in New Jersey after using DPA?
On a $569,314 home (New Jersey median), a 20% down payment is $113,863. With the Smart Start Down Payment Assistance covering $15,000, your remaining gap would be $98,863. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay New Jersey down payment assistance?
Forgiven after 5 years if you remain in the home as your primary residence (the home you actually live in, not a rental or second home). Sell, move out, or refinance before then, and you may owe the balance back.
Can I combine New Jersey DPA with other assistance programs?
New Jersey's state DPA may have restrictions on combining with other assistance programs. Verify stacking rules with an approved lender before applying.
Is there a first-generation homebuyer program in New Jersey?
Yes — New Jersey offers a first-generation homebuyer program for buyers whose parents never owned a home. This program typically provides enhanced assistance amounts or better terms. See the secondary programs section on this page and apply through the New Jersey Housing and Mortgage Finance Agency (NJHMFA).
What are the income limits for New Jersey down payment assistance?
The Smart Start Down Payment Assistance does not publish its income limit as a single percentage of AMI; limits are set in dollars by county and household size. Check the New Jersey Housing and Mortgage Finance Agency (NJHMFA) website for current limits in your area.
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What to do next
Down payment assistance is one piece of the puzzle. Here's where to go depending on where you are in the process.
Not sure if you qualify?
Check the New Jersey Housing and Mortgage Finance Agency (NJHMFA) income limits above before ruling yourself out — many buyers qualify without realizing it.
Want the full true cost picture?
DPA covers the down payment, not your ongoing costs. See the true cost of owning a home in New Jersey for the full monthly picture.
Ready to apply?
Most DPA funds are disbursed through an approved lender at closing — get pre-approved and ask specifically about Smart Start Down Payment Assistance when you apply.