06/07/2026
ATTENTION FIRST TIME HOMEBUYERS📢📢📢📢📢
The most widely available statewide assistance program for first-time homebuyers in New Jersey is the Down Payment Assistance (DPA) Program offered by the New Jersey Housing and Mortgage Finance Agency (NJHMFA).
​While often referred to as a "grant," it is actually structured as a forgivable second loan.
​Here are the key details on how the NJHMFA DPA program generally works:
​1. The Assistance
​Amount: The DPA provides up to a maximum of $15,000 (the exact amount does vary by county).
​Purpose: The funds can be used for down payment and/or closing costs.
​2. The Structure (Forgivable Loan)
​Zero Interest/No Monthly Payment: The assistance is structured as a second mortgage loan that is interest-free (0\% interest) and requires no monthly payments.
​Forgiveness: It is a forgivable loan over a set period of five years. The loan is completely forgiven if the borrower continuously resides in the home as their primary residence for the full forgiveness period and does not refinance or otherwise convey the first mortgage.
​Repayment: If the borrower sells, refinances, or ceases to occupy the home as their principal residence before the forgiveness period ends, the outstanding balance of the loan becomes due and payable.
​3. Eligibility Requirements
​To qualify for the NJHMFA DPA, you must meet several criteria, including:
​First-Time Homebuyer: Generally, you must be a first-time homebuyer, defined as someone who has not had an ownership interest in their primary residence during the previous three years. (There may be exceptions for veterans or those buying in certain "Urban Target Areas.")
​NJHMFA First Mortgage: The DPA must be paired with an NJHMFA competitive 30-year, fixed-rate first mortgage loan (often FHA, VA, or USDA insured). You cannot use the DPA with a mortgage from a non-participating lender.
​Primary Residence: The home must be purchased in New Jersey and occupied as the borrower's primary residence within 60 days of closing.
​Financial Criteria: Borrowers must meet the program's credit score and debt-to-income (DTI) ratio requirements (e.g., a minimum credit score of 620 is required).
​Income and Price Limits: Applicants must meet maximum household income limits and the home's purchase price must fall within the program's limits, which vary by county and household size.
​4. Special Program: First Generation Down Payment Assistance
​The NJHMFA also offers the First Generation Down Payment Assistance Program for qualified first-time homebuyers who are also first-generation homebuyers (generally, those whose parents do not have an ownership interest in a residential property).
​Additional Funds: This program provides an additional $7,000 of assistance.
​Total Assistance: When combined with the standard DPA, this can bring the total forgivable assistance up to $22,000.
​Forgiveness: This assistance is also a forgivable second loan with similar terms (interest-free, no monthly payment, and forgiven after a set period, of five years).
Contact me Your Sassy Real Estate Agent to discuss your options!!
