New Jersey offers a diverse housing landscape, from lively urban centers like Newark and Jersey City to quiet suburban neighborhoods and coastal communities. Whether you’re searching for your first home or moving up to your next, understanding the financial resources available can make a big difference in your homebuying journey.
For many buyers, especially first-time homeowners, down payment assistance (DPA) programs can help make homeownership more attainable. Across New Jersey, these programs provide support in the form of forgivable loans, grants, or low-interest second mortgages to help cover the upfront costs of buying a home.
This guide highlights some of the most active and accessible DPA programs in New Jersey. While it’s not a comprehensive list, it focuses on well-established options that offer meaningful benefits and ongoing funding. We’ll continue to update this page as new programs become available or existing ones evolve.
Statewide Down Payment Assistance Programs
At the statewide level, New Jersey offers powerful programs designed to boost homeownership across counties. Here are the top ones:
NJHMFA Down Payment Assistance Program (DPA)
The NJHMFA Down Payment Assistance Program offers up to $15,000 in assistance as a 0% interest, five-year forgivable second loan (no monthly payments), paired with an NJHMFA 30-year fixed-rate first mortgage.
Eligibility: Applicants must be first-time homebuyers (i.e. no prior home ownership in the past three years), meet income and purchase price limits set by county, and commit to using the home as their primary residence.
NJHMFA First Generation Down Payment Assistance
The NJHMFA First Generation Down Payment Assistance adds $7,000 on top of the regular DPA for eligible first-generation homebuyers (i.e. no parent of the borrower(s) has owned a home). The $7,000 is also structured as a 0% interest, five-year forgivable loan and must be used in conjunction with the base NJHMFA DPA.
Eligibility: Must qualify for the base DPA program (first-time buyer, income and price limits, primary residency) and also meet the “first-generation” criteria.
New Jersey Community Capital (NJCC) Statewide DPA
NJCC’s Program delivers $5,000 to $30,000 in down payment/closing cost help anywhere in NJ, structured as a “recoverable grant” forgiven at 2% per year over 5 years if the home remains owner-occupied.
Eligibility: Household income must be ≤ 100% of AMI, and there are caps on the home’s purchase price which change annually. The buyer must contribute at least $2,000 of their own funds (or one mortgage payment), sign a purchase contract, complete HUD-certified counseling, and maintain the home as their primary residence.
Down Payment Assistance Programs by County
Different counties in New Jersey run their own DPA programs tailored to local needs. Here are some of the strongest county-level options:
Bergen County – American Dream Program
Bergen County's American Dream Program offers up to $65,000 as a 0% interest deferred second mortgage (HOME funds) plus up to $10,000 in a matching, forgivable grant (forgiven 1/10 per year over 10 years).
Eligibility: Applicants must be first-time homebuyers, meet low/moderate income limits, live or work in Bergen County, purchase a single-family home or condo, and the purchase price must not exceed 95 % of the county’s median sales price.
Essex County Homebuyer Assistance Program (HAP)
Essex County’s HAP offers up to $50,000 via a 0% interest deferred loan with a 15-year lien (forgiven over that term) that can cover down payment, closing costs, or even reduce the first mortgage principal.
Eligibility: Buyers must be first-time homebuyers, contribute at least 3.5% of the purchase price from their own funds, purchase a qualifying property in participating Essex municipalities, and meet income limits and purchase price caps.
Mercer County First-Time Homebuyer Program
Mercer County’s First-time Homebuyer Program provides a deferred loan of up to $7,000 (in hardship cases up to $10,000) with 0% interest, forgiven after six years of owner occupancy.
Eligibility: Applicants must be first-time homebuyers, meet HUD low/moderate income limits, purchase in one of Mercer’s eligible municipalities, and complete a housing counseling certificate course.
Monmouth County First-Time Homebuyer Program
Monmouth’s Program offers an interest-free deferred second mortgage up to $10,000 to assist with down payment and closing costs for first-time buyers in Monmouth County.
Eligibility: Applicants must be first-time homebuyers, have been Monmouth County residents for at least one year, meet HUD income limits, complete a homebuyer counseling course, and use the home as a primary residence. Applicants cannot purchase the home with a co-signer.
Down Payment Assistance Programs by City
Cities often offer DPA programs aimed at boosting homeownership in their urban cores. Here are a few of the most compelling city-level programs:
Jersey City – Golden Neighborhood Homeownership Program (GNHP)
Jersey City’s GNHP provides up to $150,000 in grant assistance (no monthly payments or interest) toward down payment and closing costs, subject to a recapture schedule if you sell or default before the compliance period ends.
Eligibility: Must be a first-time homebuyer, satisfy low- to moderate-income limits for the area, complete required pre-purchase counseling, and use the home as primary residence for the duration of the affordability period.
City of Newark – Live Newark Closing Cost Program
Newark’s Closing Cost Program offers $20,000 in no-interest forgivable loans (forgiven 20% per year over 5 years) to first-time homebuyers purchasing homes in Newark.
Eligibility: Must purchase an owner-occupied home in Newark, be a first-time homebuyer, and meet city income and price constraints. Family income must be between 60%-80% AMI, and the owner must maintain occupancy for at least 5 years for full forgiveness.
City of Camden First-Time Homebuyer Program
Camden’s City Program offers a deferred loan up to $14,999, including up to $5,000 for closing costs and the rest for down payment or principal reduction, forgiven after 5 years.
Eligibility: Must be a first-time homebuyer, income ≤ 80 % AMI, purchase a qualifying single-family home in Camden, and complete an 8-hour HUD-certified homebuyer education course.
City of Trenton First-Time Homebuyer Program
Trenton’s First-Time Homebuyer Program gives up to $15,000 via a 0% interest deferred loan, forgivable after a 5-year affordability period.
Eligibility: Must purchase within Trenton city limits, be a first-time homebuyer, have income ≤ 80% AMI, complete housing counseling, and meet debt-to-income and other underwriting criteria.
Additional Down Payment Assistance Programs in New Jersey
Here are additional programs that weren’t highlighted above but may be relevant.
Statewide Programs
Chenoa Fund (Nationwide program available in New Jersey)
County Programs
Understanding Area Median Income (AMI)
Many down payment assistance programs in New Jersey require applicants to earn no more than a certain percentage of their area median income (AMI) in order to qualify for financial aid. In many cases, this AMI limit will range from 80% to 100%.
For example, if you're purchasing a home in a location with an area median income of $120,000, and the program you're applying for requires applicants to earn no more than 80% of AMI, you have have an income of up to $96,000 and still qualify.
Keep in mind that this applies to the area median income where you're purchasing a home, not where you currently live.
You can use the Fannie Mae AMI Lookup Tool to search by property address.
Types of Low Down Payment Mortgages
While down payment assistance programs can jumpstart your journey to homeownership, choosing the right type of loan can be an even more crucial step in the homebuying process.
- Conventional Loans: Best for borrowers with excellent credit. With a conventional loan, first-time and moderate-income homebuyers can qualify with just a 3% down payment. Repeat buyers and those with higher earnings will need 5%.
- FHA Loans: Best for borrowers with moderate credit or higher debt. FHA loans are available to borrowers with a 580 or higher credit score and require a 3.5% down payment. In some cases, applicants with a score as low as 500 can qualify with 10% down.
- VA Loans: Best for veterans and active-duty service members. The VA loan program offers one of the best mortgage options for buyers who qualify, allowing you to purchase a home with a 0% down payment and no monthly mortgage insurance premiums.
- USDA Loans: Best for rural buyers. Another government-backed program designed to make homeownership more affordable, USDA loans are available to buyers purchasing in designated rural communities and have 0% down payment required.
Final Thoughts on New Jersey DPA
Buying a home in New Jersey is about more than getting the keys, it’s about putting down roots, whether along the Shore, in a quiet suburb, or in a lively city. While saving for a down payment can feel daunting, New Jersey offers programs that make that first step more attainable. Keep an eye on current mortgage rates and use our loan calculators to better understand what you can afford. With good planning, the right assistance program can turn your homeownership goals into reality.
Check with the organization directly for the most recent guidelines. While programs were fact-checked at the time of writing, requirements change often, and programs become unavailable when funds are exhausted.
