Yes, with the right strategy. New Jersey has one of the strongest state DPA programs in the country, plus FHA, VA, and 3-percent-down conventional options that work together to reduce cash to close. The cash gap is almost always smaller than first-time buyers assume.
Most state and federal programs define a first-time buyer as someone who has not owned a principal residence in the past three years. That definition is more generous than most buyers expect. Recent divorce, returning from active military service, displaced homemakers, and previously owning a home outside the U.S. all often still qualify.
The New Jersey Housing and Mortgage Finance Agency (NJHMFA) Down Payment Assistance Program offers up to $15,000 to qualified first-time buyers as a five-year, zero-interest, no-monthly-payment second mortgage. Live in the home for five years and the loan is forgiven completely.
The First Generation Homebuyer Program adds $7,000 for borrowers whose parents have not owned a home, bringing total assistance to $22,000.
Eligibility highlights: first-time buyer (no ownership in the last 3 years), property in NJ, 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.
FHA, 3.5 percent down, credit from 580, layers with NJHMFA DPA, often the cleanest path for first-time buyers in townhouse and condo markets like Jersey City, Hoboken, Edgewater, and the Cherry Hill area.
VA, $0 down for eligible veterans, no monthly mortgage insurance, competitive rates. New Jersey has a meaningful veteran population, particularly around Joint Base McGuire-Dix-Lakehurst in Burlington County. VA layers with seller credits to often close at zero out of pocket.
Conventional 3 percent down (HomeReady or Home Possible), for borrowers with 700+ credit and income within program limits. Often has lower mortgage insurance than FHA above 720 credit.
On a $475,000 NJ home using FHA at 3.5 percent down plus the NJHMFA standard $15,000 DPA, properly negotiated seller credits, and reasonable closing costs, cash to close can fall between $4,000 and $9,000 plus reserves. Add the First Generation $7,000 for eligible buyers and the cash gap shrinks further. The exact number depends on credit, income, county, program availability, and underwriting.
It is an add-on to the NJHMFA Down Payment Assistance Program. It provides an additional $7,000 in assistance for first-time buyers whose parents have not owned a home. Stacked with the standard $15,000 DPA, total assistance reaches $22,000.
The property must be in New Jersey, but you do not need to currently live in NJ to qualify. We help out-of-state buyers, including those relocating from NY or PA, navigate the program.
Most NJHMFA programs require a minimum 620 credit score. FHA-paired NJHMFA loans may have flexibility. Conventional-paired programs typically want 660+.
Yes, as long as the condo project meets approval standards. We confirm project eligibility before you write an offer.
Start by determining what you may qualify for. A 20-minute pre-approval call lets us check credit, income, and program eligibility. We can then start the NJHMFA paperwork once you have an offer accepted.
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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