First-Time Home Buyer New Jersey 2026
Your complete guide to buying your first home in New Jersey. 2+ down payment assistance programs, FHA loans from 6.05%, and step-by-step guidance.
What First-Time Buyer Programs Are Available in New Jersey?
New Jersey offers 2 major first-time home buyer assistance programs. These include NJHMFA Down Payment Assistance, NJ First-Time Homebuyer MCC. Programs provide up to $15,000 in down payment assistance through grants, forgivable loans, and below-market interest rates.
How Much Do I Need to Buy in New Jersey?
You can buy a home in New Jersey with as little as $0 down. VA and USDA loans require zero down payment. FHA loans need just 3.5% ($$16,975), and conventional loans start at 3% ($$14,550) on the median price of $485,000.
| Loan Type | Down Payment | $ Amount | Monthly P&I | Min Credit |
|---|---|---|---|---|
| VA Loan | 0% | $0 | $2,908 | 620 |
| USDA Loan | 0% | $0 | $2,986 | 640 |
| Conventional 3% | 3% | $14,550 | $2,897 | 620 |
| FHA Loan | 3.5% | $16,975 | $2,821 | 580 |
| Conventional 20% | 20% | $97,000 | $2,389 | 620 |
New Jersey Down Payment Assistance Programs
NJHMFA Down Payment Assistance
Up to $15K forgivable DPA
NJ First-Time Homebuyer MCC
Tax credit up to $2,000/year
5 Steps to Buy Your First Home in New Jersey
To buy your first home in New Jersey, start by checking your credit score, getting pre-approved, and researching DPA programs. The entire process typically takes 30-60 days from pre-approval to closing. Here's your step-by-step roadmap.
Check Your Credit & Finances
Review your credit score (aim for 620+), calculate your debt-to-income ratio, and save for closing costs. In New Jersey, you may need as little as $16,975 for an FHA down payment.
Get Pre-Approved
Compare rates from at least 3 lenders. Current New Jersey rates: 6.25% (30-year), 6.05% (FHA). Pre-approval shows sellers you're serious and locks your rate.
Apply for New Jersey DPA Programs
New Jersey has 2+ DPA programs. The NJHMFA Down Payment Assistance offers up to $15,000. Apply early—funding can be limited.
House Hunt & Make an Offer
Popular cities in New Jersey: Newark, Jersey City, Paterson, Elizabeth, Trenton. Median price is $485,000 (+7.8% YoY). Work with a local real estate agent who knows the market.
Close on Your New Home
Closing costs in New Jersey typically run 2-5% of the purchase price ($14,550-$24,250). Some DPA programs also cover closing costs.
Start Your New Jersey Home Buying Journey
Get pre-approved in minutes and see what you qualify for.
Get Pre-Approved NowNew Jersey First-Time Buyer FAQ
What first-time home buyer programs are available in New Jersey?
New Jersey offers 2 major programs: NJHMFA Down Payment Assistance, NJ First-Time Homebuyer MCC. These provide grants, forgivable loans, and below-market rates for down payment and closing cost assistance.
How much down payment do I need in New Jersey?
As little as $0 (VA/USDA), $$14,550 (3% conventional), or $$16,975 (3.5% FHA) on the median price of $485,000.
What income do I need to buy in New Jersey?
Using the 28% rule, you'd need approximately $$120,905/year. The median household income in New Jersey is $85,245.
What is the FHA loan limit in New Jersey?
The 2026 FHA loan limit in New Jersey is $766,550. The conforming loan limit is $766,550.