First-Time Homebuyer + DPA
What This Looks Like for a $350,000 Home in New Jersey
How New Jersey's First-Time Homebuyer Programs Work
NJHMFA (New Jersey Housing and Mortgage Finance Agency) offers First-Time Homebuyer + DPA to qualifying first-time buyers in New Jersey. Most New Jersey buyers pair this with an FHA, VA, USDA, or Conventional 97 loan, using the DPA to cover the down payment, closing costs, or both. The DPA is structured as 5-year forgivable second mortgage.
Eligibility requirements
Most New Jersey HFA programs require: (1) you haven't owned a primary residence in the last 3 years, (2) household income under ~$167,000 (county-dependent), (3) minimum FICO score of 640-680, (4) the home is your primary residence, (5) you complete a HUD-approved homebuyer education course (typically online, ~6-8 hours).
How to apply for First-Time Homebuyer + DPA
You don't apply directly through NJHMFA (New Jersey Housing and Mortgage Finance Agency) — you apply through one of their participating lenders. The agency lists approved lenders on their website. Get pre-approved with at least 2-3 of them: rates and fees vary, even within the same DPA program.
Combining New Jersey DPA with federal loans
Pair First-Time Homebuyer + DPA with FHA (3.5% down, 580+ FICO) for the easiest qualifying. Veterans should use VA loans (0% down) — DPA still helps with closing costs. Rural buyers should check USDA (0% down). Buyers with 3-5% down and good credit can use Conventional 97 or HFA Preferred for lower mortgage insurance.
Other New Jersey buyer benefits
Beyond DPA, ask your lender about: Mortgage Credit Certificates (MCC) for federal tax credits up to $2,000/year, employer-assisted housing programs (some New Jersey employers offer additional grants), and city/county DPA stacking (cities like the largest metros in New Jersey often add their own programs on top of state DPA).