Down payment assistance in New Jersey
New Jersey's primary statewide down payment assistance program, run by New Jersey Housing and Mortgage Finance Agency (NJHMFA). Numbers and eligibility reflect the program's published 2025 guidelines.
Down Payment Assistance Program
Forgivable second- Maximum assistance
- $15,000 forgivable second mortgage
- Income limit
- Up to $174,765 (varies by county and household)
- Home price limit
- Up to $805,000 in high-cost counties
- First-time buyer
- Required
- Eligible loan types
- FHA, VA, USDA, Conventional
- •Forgiven 100% after 5 years if you stay in the home.
- •Required to be paired with NJHMFA's first mortgage.
How New Jersey DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. New Jersey's Down Payment Assistance Program pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
New Jersey's primary statewide DPA is Down Payment Assistance Program from New Jersey Housing and Mortgage Finance Agency (NJHMFA). $15,000 forgivable second mortgage. Many New Jersey cities and counties also run additional DPA layered on top.
Yes. The Down Payment Assistance Program requires that you have not owned a primary residence in the past 3 years. Veterans and target-area buyers are sometimes exempt.
Yes. Down Payment Assistance Program works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Usually no. Deferred and forgivable loans typically have no monthly payment, so most lenders do not include them in your DTI calculation.
If you sell or refinance before the forgiveness period ends, you typically have to repay the unforgiven portion.