urban development

When you’re a first time home buyer in New Jersey, it’s hard to know where to start. The process can feel overwhelming, and you’re probably not sure what kind of financial assistance you can get.

Luckily, there are plenty of government programs out there that can help you buy your first home. From down payment assistance programs to mortgage subsidies, the government has created several ways for first-time home buyers like yourself to get the help they need.

In this guide, we will go over the most common forms of aid available to those looking to buy their first home in New Jersey.

How Do First Time Home Buyer Programs in New Jersey Work?

First time home buyer programs in New Jersey are designed to help people who have never owned a home. These programs are also designed to help people with very little money for a down payment and/or no credit history.

If you meet the eligibility requirements of New Jersey’s first time home buyer NJ program, you will be able to buy a home with little or no down payment. These loans aim to ensure homeownership remains within reach for all Americans, even those who might not otherwise qualify for traditional financing options due to their lack of experience or poor credit score.

How to Qualify as a First Time Home Buyer in New Jersey (NJ)

You must have enough income for your monthly mortgage payments and expenses like taxes, pay mortgage insurance, and utilities. The total debt ratio (the sum of all your debts divided by your total income) must be lower than 36%.

In addition to this requirement, you will need at least a 3% down payment toward the purchase price of the house or condo that you plan on purchasing as owner/occupant buyers (up to $500K). You can also use gift funds toward closing costs or qualify for a down payment assistance program offered by public entities.

The NJHMFA requires borrowers to meet specific income conditions based on family size. You must also meet citizenship or eligible non-citizen requirements and show good credit and valid identification documentation. This includes a passport or driver’s license from any state where you’ve lived during the past two years with an expiration date within six months of the application date.

Furthermore, first time home buyers are eligible for various tax incentives from the state of New Jersey. This includes assistance programs for a down payment and mortgage credit certificates to help fund their purchases.

Properties You Can Buy as a First Time Home Buyer NJ

As a first-time home buyer, there are several properties that you can purchase in New Jersey. These include single-family homes, condominiums, cooperative apartments, townhouses, and duplexes to fourplexes.

If you prefer to live on your own and have the freedom of choosing who your neighbors will be, then purchasing a single-family home might be right for you. On the other hand, if you enjoy living in an environment with a sense of community amongst residents and common facilities such as swimming pools or playing fields. Then owning an apartment building may be preferable.

private mortgage insurance

New Jersey’s First Time Home Buyer Mortgages

First time home buyer mortgages are special mortgages designed to help the first time home buyers purchase a home. There are several kinds of first time home buyer NJ mortgages available in New Jersey, and the best type depends on your individual situation. The following are some of the most popular first time homeowner mortgages in NJ:

Conventional 97 Loan

Conventional 97 is a popular first time home buyer mortgage with a 20% down payment that offers lower interest rates than FHA’s, VA’s, and USDA. This has the same benefits as the other conventional loans. However, it has one more advantage; you may be able to purchase a home with little or no closing fees.

Conventional 97 has an amortization (repayment) period lasting 30 years. Then it will be discharged/paid off at maturity. Therefore, if you’re looking for low-cost monthly payments. In that case, this may not be the best option for you.

To qualify for this program, there must be 20% equity from you or a third party on the property when submitting your application. However, no down payment is required if you decide to get an FHA or VA loan.


A USDA Loan is a mortgage loan backed by the United States Department of Agriculture. The USDA loan program was created to make homeownership more affordable for low-income first time home buyers, rural residents, and active military members looking to purchase homes in eligible areas. With a down payment of just 3%, this no down payment option makes it easier for new home buyers to become homeowners.

Moreover, the USDA Rural Development Guaranteed Housing Program helps low-income families buy homes in rural areas with limited housing choices and financing options. To qualify for this program, you must be able to prove your eligibility by meeting basic income guidelines based on family size and location. Also, you will need at least a 5% down payment upfront as part of your initial deposit into escrow accounts before closing.

VA Loan

VA Loan is a VA-approved mortgage loan program to provide home financing to eligible veterans and active-duty military personnel. These loans are fully guaranteed by the Department of Veterans Affairs (DVA), and DVA guarantees the mortgages of borrowers who qualify for one. The guarantee means that if the borrower defaults on his or her loan, the approved mortgage lenders can recoup their losses directly from DVA.

Unlike conventional or FHA loans, which require only a 3% down payment, VA loans require no down payment. However, some costs are still associated with getting your credit score in order before applying for this type of mortgage.

loan programs

FHA Loan

The FHA loan is one of the best options for a first time home buyer NJ. They are popular in New Jersey because they’re available to borrowers with lower credit scores and lower down payments than other types of home loans. So if you have poor credit or haven’t been able to save enough money for a 20% down payment on your home purchase, an FHA loan could be right for you.

The Federal Housing Administration (FHA) insures these mortgages, so the approved mortgage lenders don’t have to worry about losing their investment if a borrower defaults on their loan. That makes it easier for low-income borrowers with fewer savings for a down payment to get approved.

New Jersey Housing and Mortgage Finance Agency Loan

The NJHMFA Loan program provides down payment assistance to help you buy your dream home in the state. The NJHMFA Loan is one of the best mortgage programs for first time home buyers in New Jersey, and it’s available to residents of all counties across New Jersey.

The NJHMFA Loan is also an assistance program for a down payment because it can help you pay off some or all of your closing costs. This includes attorney fees, title insurance, and escrow fees. In addition, this loan will cover up to 5% of your purchase price.

New Jersey’s First Time Home Buyer Programs

Several options are available if you’re a first time home buyer in New Jersey. These programs will help make it possible for you to purchase a home even if you don’t have enough money saved up.

There are many programs out there that can help first time buyers, but some of the most common ones include:

NJHMFA First Time Home Buyer Mortgage

NJHMFA First Time Home Buyer Mortgage is one of the first time home programs in New Jersey. This program offers down payment assistance, closing cost assistance, and even moving expenses to help you achieve your dream home.

The mortgage finance agency First Time Home Buyer Mortgage program offers down payment assistance up to 5% of the purchase price and closing cost assistance up to 3% of the purchase price. These incentives can be combined for a maximum benefit of 8% towards your purchase price. This may be perfect for you if you can’t meet all your down payment requirements but have good credit and income.

NJHMFA Police and Firemen’s Retirement System Mortgage

The NJHMFA Police and Firemen’s Retirement System Mortgage is a low down payment mortgage program for first time home buyers who want to purchase a primary residence in New Jersey. The application process is easy and straightforward, with no origination fees or closing costs. Therefore, you can buy your home using only a 3% down payment.

To qualify for the NJHMFA’s PFRS mortgage, you must:

  • Have been employed for at least one year (two years if you’re an active member of the military) by the time you apply.
  • Have not defaulted on any other federal obligations.
  • Be able to document your income through pay stubs, tax returns, or other documentation.
  • Be approved for a conventional mortgage loan based on your credit score using Fannie Mae guidelines.
  • Does not own another property at the time of application (or within six months after closing).
  • Meet mandatory income requirements based on household size and state median income limits.


competitive interest rates

First Time Home Buyer Grants NJ

A first time home buyer grant is a financial incentive offered by many states and local governments to entice individuals to purchase homes. These first time home buyer grants NJ is usually used as closing expenses or down payment assistance. Still, they can also be used for other purposes, such as a funding source for repairs needed when purchasing the home.

Moreover, a first-time home buyer grant allows buyers to save thousands of dollars on their down payment, resulting in less overall spending on purchasing their new home. The funds from these grants are typically paid directly from the state into your account. Therefore, you can use them towards any part of your purchase transaction (i.e., down payment, repairs).

Down Payment Assistance Program of NJHMFA

The New Jersey Housing & Mortgage Finance Agency Down Payment Assistance Program is a first time home buyer program in New Jersey for people buying a home for the first time. Under this program, you may be eligible to receive down payment assistance from NJHMFA for up to $10,000 towards your home purchase.

You can apply for the NJHMFA Down Payment Assistance if:

  • You qualify as a first-time homebuyer (you have not owned a primary residence within the past three years).
  • Your household income must fall below 80% of the area median income defined by HUD to purchase an affordable housing unit.

For example, suppose you have bought a house before and now want another one. In that case, this program won’t work for you because it is only available to those who qualify as first time homeowners.

Building Condition and Home Inspection

To ensure a good purchase, it’s crucial to have a home inspection. This involves hiring a professional inspector who will evaluate the property’s condition from top to bottom, including the roof and foundation. The inspection will uncover any potential issues that may affect the home’s value.

Why is a Home Inspection Important?

There are multiple reasons why a home inspection is crucial. Firstly, it can detect significant problems with the home that may require expensive repairs, such as a damaged foundation, a malfunctioning electrical system, or a leaky roof. Secondly, a home inspection ensures that you are making a wise investment, which can provide peace of mind. Lastly, you can use a home inspection as leverage in negotiations with the seller.

Choosing a Home Inspector

It is important to select a home inspector who is licensed, insured, and has experience inspecting homes in your location. It may be helpful to ask for referrals from friends or family members who have recently gone through the process of purchasing a home.

Common Issues Found During a Home Inspection

During a home inspection, issues that are frequently discovered include:

  • Electrical problems
  • Plumbing issues
  • Roof leaks
  • Foundation cracks
  • HVAC problems

The Importance of Air Conditioning in a Home Inspection

Having air conditioning in your New Jersey home is crucial, especially with the hot and humid summers. During a home inspection, the inspector will assess the air conditioning system to ensure it’s functioning properly. This covers analyzing the condition and age of the unit, along with examining the ductwork and ventilation.

In case the air conditioning system is old or requires fixing, you could use it as a bargaining chip when dealing with the seller. This could involve requesting a reduced price or asking the seller to conduct the repairs prior to closing the sale. For more information about air conditioning repair, replacement, and installation in New Jersey, I recommend checking out Stay Cool’s air conditioning recommendations page.

To sum up, getting a home inspection is crucial when buying a house as it can reveal any possible problems with the property. It is important to select a reputable and seasoned home inspector after conducting proper research. Additionally, do not overlook the significance of air conditioning, which is an essential aspect of any home and must be inspected during the process.


In conclusion, many programs are available to first time home buyers in New Jersey. Whether you want to buy a new house, an existing home, or a condo, a program can help you with the process. The programs are designed to help you save money on your taxes and get into your dream home sooner than if you didn’t have the assistance of these programs.

At this point, you’re probably thinking about how to get started. If you’re worried about the New Jersey home buying process and don’t know where to start, HOMES by ARDOR is here for you. As real estate professionals, we can help with any questions or concerns during the process.

Read next:


Buy and Sell Your Property in One Place

Our team of experienced real estate agents and user-friendly platform will help you streamline the process of buying or selling your home