How to Qualify for First-Time Homebuyer Programs and Grants in New Jersey

What programs and grants are available to help first-time homebuyers in New Jersey—and how can you qualify?

Buying your first home is exciting, but it can also feel financially overwhelming. Between saving for a down payment, covering closing costs, and securing financing, the process can seem out of reach for many first-time buyers.

The good news? New Jersey offers several programs and grants designed to make homeownership more affordable. If you’re ready to buy your first home, these resources could make all the difference.

What Are First-Time Homebuyer Programs?

First-time homebuyer programs are designed to help you overcome common financial barriers—like large down payments or high closing costs.

In New Jersey, these programs are typically offered through:
🏡 The New Jersey Housing and Mortgage Finance Agency (NJHMFA)
🏦 Local or county housing departments
💰 Federal programs such as FHA, VA, or USDA loans

Each has its own requirements, but all aim to make it easier for qualified buyers to achieve the dream of homeownership.

NJHMFA First-Time Homebuyer Mortgage Program

This is one of the most popular programs in the state—and for good reason.

Highlights include:
✅ A competitive, fixed-rate mortgage
✅ Up to $15,000 in down payment and closing cost assistance
✅ Availability across all New Jersey counties
✅ Option to combine with other local incentives in select areas

Basic Qualifications:

• Must be a first-time homebuyer (no home ownership in the past three years)

• Must purchase a primary residence in New Jersey

• Must meet credit and income requirements (varies by county)

• Must work with a participating NJHMFA lender

💡 Pro Tip: If you’re buying in an NJHMFA “target area,” you may still qualify even if you’ve owned a home before.

Down Payment Assistance Program (DPA)

The NJHMFA Down Payment Assistance (DPA) Program provides up to $15,000 in forgivable assistance toward your down payment and closing costs.

Here’s how it works:

• It’s a 0% interest loan, forgiven after five years if you stay in the home.

• Must be paired with an NJHMFA first mortgage.

• Applies to single-family homes, condos, and townhomes in approved areas.

For many first-time buyers, this program bridges the gap between “almost ready” and ready now.

Federal and Local Assistance Programs

In addition to state options, many buyers in New Jersey benefit from federal loan programs:

• FHA Loans: Require as little as 3.5% down and have flexible credit criteria.

• VA Loans: No down payment required for eligible veterans and service members.

• USDA Loans: Zero-down financing for homes in qualified rural or suburban areas.

You may also find county-level programs that offer grants or low-interest loans, especially in Bergen, Hudson, and Essex Counties.

💡 Ask your local housing authority or your REALTOR® for programs available in your specific area.

Steps to Qualify

To make the most of these opportunities, follow these steps:

1. Check your credit. Most programs require a minimum credit score (often 620+).

2. Gather your documents. Be ready with pay stubs, W-2s, and tax returns.

3. Work with a participating lender. They’ll guide you through which programs you qualify for.

4. Get pre-approved. This shows sellers you’re serious and helps you focus your search.

5. Partner with an experienced agent. I can help you identify homes and areas that align with these programs.

Final Takeaway

If you’re a first-time homebuyer in New Jersey, you may be closer to owning a home than you think. Between state, local, and federal programs, there are multiple paths to help you qualify—no matter your financial starting point.

The key is knowing where to look, how to apply, and who to trust for guidance.

Start Your Homeownership Journey Today

Let’s explore the programs and grants that can help you buy your first home in New Jersey with confidence.

📞 Call Scott Selleck of The Selleck Group, KW City Views Realty at 201-970-3960 or email [email protected] to get connected with trusted local lenders and start your path to homeownership.