Are mortgage rates going up or down in 2026?

As of June 11, 2026, Freddie Mac reported the 30-year fixed average at 6.52 percent, the third increase in four weeks. Inflation hit a three-year high in May at 4.2 percent year over year, which gives the Federal Reserve little room to cut. Rates may ease later in 2026, but no one can guarantee timing or direction.

Is Sacramento a buyer's market or a seller's market right now?

Per Realtor.com data released June 11, 2026, the South and West regions of the U.S. have tilted toward buyers. Sacramento sits inside that buyer-leaning western market. Homes are now typically selling below list price, and sellers are offering more negotiating room than they have in years.

What about New Jersey? Is it a buyer's market in 2026?

No. The Northeast is the one U.S. region where homes are still selling above list price, according to Realtor.com. New Jersey buyers in Bergen, Hudson, Essex, Morris, and similar high-demand counties continue to face competitive offers and limited inventory. The strategy in NJ is different from California in 2026.

Should I wait for rates to drop before buying?

That depends on your local market, your timeline, and your rent. In California's softer 2026 market, the negotiating leverage available today may offset waiting for a small rate drop. In New Jersey's still-competitive market, waiting carries the risk of further price increases. Every buyer's math is different.

How fast does a home need to sell for the buyer to lose leverage?

Realtor.com found that homes going under contract within the first four weeks tend to sell about 1.8 percent above the typical sale price. By the 18-week mark, sellers are typically accepting about 1.3 percent less than they wanted. Speed favors sellers in the early weeks; time favors buyers.

What does this mean for first-time buyers using DPA?

In a buyer-leaning California market, sellers are more willing to provide closing-cost credits that can be redirected to a 2-1 buydown or to cover most of the cash to close. Stacked with CalHFA MyHome, GSFA Platinum, SHRA programs, or NJHMFA in New Jersey, the cash gap is often smaller than first-time buyers expect.

NJHMFA Down Payment Assistance: What New Jersey Buyers Need to Know in 2026

NJHMFA DPA in 2026: how the $22,000 stack actually works

✓ Last reviewed by Ken Clark Jr., NMLS #225375, June 2026

If you are a first-time buyer in New Jersey, the NJHMFA Down Payment Assistance Program is the biggest single lever you have. Here is how the standard $15,000 DPA, the First Generation $7,000 add-on, and the $22,000 total stack actually work in practice, what disqualifies you, and how to plan your offer around it.

By Ken Clark Jr., Certified Mortgage Advisor ·NMLS #225375 ·Reading time: 6 min

The basics: what NJHMFA DPA actually is

The New Jersey Housing and Mortgage Finance Agency Down Payment Assistance Program provides up to $15,000 in down payment and closing cost assistance to qualified first-time New Jersey buyers. It is structured as a five-year forgivable second mortgage. No monthly payment. Zero interest. Live in the home for five years and the obligation is forgiven completely.

The First Generation $7,000 add-on

The First Generation Homebuyer Program adds another $7,000 in assistance for buyers whose parents have never owned a home. Same five-year forgivable structure. Same NJ property requirement. Same first-time buyer requirement. The eligibility test is the parent-ownership question.

What counts as "parent ownership": ownership of a principal residence in the United States. Foreign country ownership generally does not disqualify. Properties held in trust, time-shares, and investment-only properties have specific tests.

The $22,000 stack

Standard $15K + First Generation $7K = $22,000 total stackable DPA. Used together, both layers can apply to down payment and closing costs. For a $475K NJ home with FHA at 3.5 percent down, the down payment alone is $16,625. The $22K stack covers the down payment AND most of the closing costs in one move.

Eligibility you should not miss

First-time buyer: no ownership of a principal residence in the United States in the last 3 years.
New Jersey property: the home being purchased must be in NJ.
Primary residence only: investment and second-home purchases are out.
Income limits: typically up to 140 percent of area median income (varies by household size and county).
Credit minimum: 620+ credit score for standard NJHMFA; 660+ for better pricing.
NJHMFA-approved first mortgage: not every lender is approved. Confirm before you commit to one.

Where buyers typically slip up

Mistake 1: waiting until after they have an accepted offer to ask about NJHMFA. By then, the lender may not be NJHMFA-approved. Ask FIRST.

Mistake 2: assuming First Generation eligibility without checking. The parent-ownership question is specific. If your parents owned a home in the US at any point, even briefly, you typically do not qualify for the First Generation add-on.

Mistake 3: not budgeting for the program timeline. NJHMFA reservations have specific windows. Adding 7-10 days to a typical 21-day FHA close is common.

Real Jersey City and Bergen County math

On a $475K NJ home using FHA at 3.5 percent down ($16,625) with the full $22K NJHMFA stack, a properly negotiated 3 percent seller credit for closing costs ($14,250), and reasonable reserves, total cash to close commonly lands in the $5,000-$10,000 range. Subject to credit, income, county-specific factors, and current program availability.

Frequently Asked Questions

Can I use NJHMFA on a duplex or fourplex?

Yes, if you occupy one unit as your primary residence. The rental income from the other unit can help with qualification under specific rules.

What if I have owned a vacation home but never a primary?

NJHMFA defines "first-time" as no PRIMARY residence ownership in the last 3 years. Vacation homes that were never your primary residence typically do not disqualify.

Does the $22K stack require homebuyer education?

NJHMFA requires HUD-approved homebuyer education for most programs. Can usually be completed online in 6-8 hours.

Can NJHMFA layer with VA or conventional?

NJHMFA has products that pair with FHA, conventional, VA, and USDA. The pairing affects the first-mortgage rate. We model the combinations to find the best total cost.

What if I am divorced and my ex owned the home?

Divorce-related ownership exemptions exist under NJHMFA rules. We help confirm your eligibility based on the specific divorce documentation.

Want a real answer for your situation?

Connect with Ken Clark Jr. and the #ChampionsofLoans team at PRMG Mortgage. The right strategy starts with a conversation, not a guess.

Schedule a 20-Minute Strategy Call Check My DPA Eligibility

Sources: New Jersey Housing and Mortgage Finance Agency; NJHMFA First-Time Buyer Programs.

This article is for educational purposes only and is not a commitment to lend or guarantee of approval. Loan programs, rates, terms, and eligibility requirements are subject to change. Equal Housing Opportunity. PRMG Mortgage. NMLS 225375. Ken Clark Jr. NMLS #225375.