Down payment assistance, grants, forgivable loans, and tax credits available to New Jersey buyers. Each program below is verified, with eligibility rules, benefit amounts, and a direct link to the official agency.
Last reviewed July 2026·3 programs·6 federal programs
Administered by New Jersey Housing and Mortgage Finance Agency
Up to $15,000 by county (+$7,000 first-generation add-on)
Interest-free down payment assistance, tiered by county up to $15,000, forgivable after 5 years if you remain in the home. First-generation homebuyers can add $7,000 (same forgiveness), bringing totals to $17,000-$22,000. Requires an NJHMFA first mortgage.
Income limit
Income limits vary by county
Minimum credit score620
First-time buyer requiredYes
Special requirements: Must complete homebuyer education. First-time buyers only.
Administered by New Jersey Housing and Mortgage Finance Agency
Below-market interest rate
Below-market 30-year (or 15-year) mortgage funded through the PFRS pension fund. Rate is set at the 10-year Treasury yield plus 1%, reset each February and August. Cannot be combined with NJHMFA down payment assistance.
Income limit
No income limits
Minimum credit score620
First-time buyer requiredNo
Profession-specificpolice, firefighters
Special requirements: Must be an active PFRS member with at least 1 year of creditable service. Max 85% LTV; lender and agency fees apply.
Low down payment mortgage with reduced mortgage insurance. Allows income from non-borrower household members. A $2,500 credit for very-low-income borrowers (50% AMI or less) is available through early 2027 when at least one borrower is a first-time buyer.
Do I have to be a first-time homebuyer to qualify?
Most New Jersey programs require first-time buyer status, but the definition is broader than most people think — the IRS considers you a first-time buyer if you haven't owned a primary residence in the last three years. Each program above lists its specific rules.
What credit score do I need?
Minimum credit scores vary by program. Most New Jersey programs require 620 to 660, though some lower-tier products accept lower scores with manual underwriting. Check each program's eligibility section above.
How do I actually apply?
Most state programs aren't applied to directly — you go through a participating lender, who handles the program application as part of your mortgage. Each program above links to the official agency page with the current list of approved lenders.
Can I combine multiple programs?
Often yes — many states allow you to stack a state down-payment grant with a federal FHA or VA loan. Some programs explicitly forbid combining; check each program's "special requirements" above.
Do these programs cost anything?
The programs themselves are free to apply for. Some require completing a homebuyer education course (typically $50–$100, sometimes free). Forgivable second mortgages technically don't cost you unless you sell or refinance early — read the terms carefully.
