$15,000
toward your down payment in Bergen, Hudson, Essex, Passaic, Morris, Union and other high-cost counties ($10,000 in the rest of NJ)
Source: NJHMFA, June 2026
+$7,000
more if your parents never owned a home, up to $22,000 total
Source: NJHMFA First Generation program
40
is now the typical age of a first-time buyer in the U.S. If you feel late, you're not.
Source: NAR 2025 Profile
21%
of buyers last year were first-timers, the lowest ever recorded
Source: NAR 2025 Profile
First, are you a "first-time buyer"?
Probably more than you think. In New Jersey, you count as a first-time buyer if you haven't owned the home you lived in for the last three years. So if you owned a place a while back and you've been renting since, you can qualify again.
Two groups skip that rule completely: veterans who qualify, and anyone buying in one of the state's Urban Target Areas (a lot of our cities are on that list).
The big one: up to $15,000 for your down payment
The state's housing agency, NJHMFA, gives first-time buyers up to $15,000 in Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset and Union counties. Everywhere else in New Jersey it's $10,000.
Technically it's a loan, but there's no interest and no monthly payment. Live in the home for five years and it's gone, forgiven. You can use it for the down payment or closing costs. The catch: you have to use the state's mortgage with it, through a lender that works with NJHMFA.
If your parents never owned a home: $7,000 more
This is the one most people miss. If your parents or guardians don't own a home, or you were ever in foster care in New Jersey, the state adds another $7,000. That's up to $22,000 in the high-cost counties. Same deal: stay five years and it's forgiven.
The state put $40 million back into these programs in the 2026 budget, and they've helped more than 7,400 people buy. Money like this can run out, so ask your lender to confirm it's still open before you count on it.
The mortgages that go with it
You've got a few choices. The state's first-time buyer mortgage is a 30-year fixed FHA, VA or USDA loan, and it works for single-family homes, 2 to 4 families, condos and townhouses. There's also HFA Advantage, a regular conventional loan where you can put as little as 3% down with a 620 credit score.
If you're a cop or firefighter in the state pension (PFRS) with a year on the job, you have your own mortgage program. You don't have to be a first-time buyer for that one, but it can't be combined with the $15,000.
How much can you make, and how much can you spend?
There are limits, and they depend on your county and how many people are in your household. As of June 2026, it's roughly $134,600 to $154,800 a year for 1 or 2 people, and $154,790 to $178,020 for 3 or more.
The price cap on a single-family home is $1,306,975 in Bergen, Hudson, Essex and the other expensive counties, and $566,355 in Cumberland, Mercer and Warren. Your lender will give you the exact number for your town.
Other ways to buy with a small down payment
FHA loans let you put down 3.5%. Fannie Mae's HomeReady and Freddie Mac's Home Possible let you put down 3% if your income fits. My advice: have your lender compare these against the state program side by side. The lowest rate isn't always the cheapest deal once the free money is in the picture.
Good news on the "mansion tax"
If you're buying over $1 million, you used to pay an extra 1% at closing. Not anymore. Since July 10, 2025, the seller pays it instead, on a sliding scale. In New Jersey the seller also pays the regular transfer tax. You still pay for the lender, title insurance and your attorney, and the state money can help with those.
What I tell my buyers to do, in order
1) Get pre-approved with a lender that does NJHMFA loans. 2) Ask them to show you the numbers with and without the state money. 3) Find out your county's income and price limits. 4) Shop under that price. 5) If you might move within five years, factor that in.
If you want help with any of it, I'm happy to walk you through it. See buying a home in New Jersey, our first-time buyer guide, or just book a call.
Sources
- NJHMFA, First-Time Homebuyer and Down Payment Assistance fact sheet (updated June 17, 2026)
- NJHMFA, First Generation Homebuyer program fact sheet
- NJHMFA, HFA Advantage fact sheet (updated June 17, 2026)
- NJHMFA, Police and Firemen's Retirement System mortgage fact sheet
- NJHMFA, homebuyer programs
- NJHMFA, $40M renewed for down payment programs (July 14, 2025)
- NAR, first-time buyer share falls to 21%, median age rises to 40 (Nov 4, 2025)
- Fannie Mae, HomeReady mortgage
- Freddie Mac, 3% down payment options
- NJ Division of Taxation, realty transfer fee
Educational content, not legal, tax or financial advice. Figures are from the cited sources as of publication.