Up to $22,000 in stackable assistance for eligible first-time buyers, plus a handful of multi-state programs that work in NJ. The NJHMFA program is the workhorse, but it is not the only option, and the right combination depends on your specific situation.
The New Jersey Housing and Mortgage Finance Agency Down Payment Assistance Program is the largest state-level DPA in New Jersey. It provides up to $15,000 to qualified first-time buyers as a five-year, zero-interest, no-monthly-payment second mortgage. Stay in the home for five years and the loan is forgiven completely. Walk away with the equity you have built.
Eligibility: first-time buyer (no ownership in 3 years), NJ property, primary residence, 620+ credit, income within program limits (typically up to 140 percent of area median income), and use of an NJHMFA-approved first mortgage.
For buyers whose parents have not owned a home, NJHMFA offers an additional $7,000 on top of the standard $15,000, bringing total assistance to $22,000. The First Generation add-on has the same five-year forgivable structure as the base DPA.
Chenoa Fund Down Payment Assistance: available nationwide and pairs with FHA financing. Offers 3.5 or 5 percent DPA, with both forgivable and repayable structures. Useful for borrowers above NJHMFA income limits.
NHF (National Homebuyers Fund): a multi-state DPA grant program covering many counties. Eligibility and availability change by county and funding cycle.
HUD HOPE / community-level programs: some NJ municipalities (Newark, Jersey City, Paterson, Trenton, Atlantic City among others) operate local DPA programs. Funding cycles open and close, so a real-time check matters.
On a $450,000 NJ purchase using FHA at 3.5 percent down ($15,750), the standard $15,000 NJHMFA DPA covers most of the down payment. Add reasonable seller credits and the cash gap shrinks meaningfully.
For first-generation buyers, stack the additional $7,000 and the math gets even friendlier. Combined with a properly written offer, qualified buyers regularly close on a NJ home with under $7,000 plus reserves out of pocket. Exact numbers depend on credit, income, county, program funding availability, and underwriting.
The fastest way to know is a short call. We pull credit (with permission), verify income, and run the stacking math against your specific scenario. The output is a written summary showing which programs fit, what the estimated cash to close looks like, and what your monthly payment range would be. No commitment to lend, no obligation, no charge.
It is a five-year forgivable second mortgage. No monthly payments. Zero interest. If you live in the home for five years, the loan is forgiven completely. If you sell or refinance before five years, the unforgiven balance is repayable. Most buyers treat it as a grant because they have no intention of moving within five years.
Yes. NJHMFA is a statewide program available in all 21 NJ counties. Maximum dollar amounts may vary by county.
Chenoa Fund and certain conventional 3-percent-down options have higher income tolerances. We model multiple program combinations to find one that works for your scenario.
It stacks specifically with the standard NJHMFA Down Payment Assistance Program. Eligibility requires that no parent of the borrower has owned a home in the United States. We can confirm eligibility in a 20-minute call.
NJHMFA works statewide. Atlantic County and other southern NJ counties typically have lower median prices, so the same DPA stack often covers a larger percentage of the down payment. Some municipalities also operate their own programs.
This page 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 and depend on credit, income, property, occupancy, program guidelines, and other underwriting factors. Equal Housing Opportunity. PRMG Mortgage. NMLS 225375. Ken Clark Jr. NMLS #225375.
Certified Mortgage Advisor and Branch Manager at PRMG Mortgage (NMLS #75243). 28 years in mortgage lending. Specializes in FHA, VA, conventional, DPA, jumbo, Non-QM, renovation, and construction financing for buyers and investors in Sacramento, New Jersey, and 47 other states (NY excluded). Three-time Gold Award winner for Best Mortgage Company in Sacramento (2023, 2024, 2025). NMLS #225375.
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