Buying your first home in New Jersey can feel overwhelming, especially when trying to save for a down payment and cover closing costs. Fortunately, New Jersey offers a variety of first-time homebuyer grant programs in 2025 to help make homeownership more affordable and attainable. Below is a comprehensive guide to the key programs, their benefits, and how to qualify.
🏠 NJHMFA Down Payment Assistance Program (DPA)
This is one of the most popular and widely used programs for first-time homebuyers in New Jersey.
- Offers up to $15,000 in assistance
- Funds can be used for down payment and closing costs
- The assistance is provided as a five-year forgivable loan — if you stay in the home for at least five years, you never have to repay it
- No monthly payments or interest charged
To qualify, you must use an approved mortgage through the NJ Housing and Mortgage Finance Agency, which includes competitive 30-year fixed-rate options.
👨👩👧 First Generation Down Payment Assistance
This new and powerful enhancement provides additional help to those who are first-generation buyers — individuals whose parents or legal guardians have never owned a home in the U.S.
- Offers an additional $7,000 in assistance
- Can be combined with the $15,000 DPA for up to $22,000 total help
- Still a forgivable loan if all criteria are met
- Intended to help families break the cycle of renting and achieve generational homeownership
📈 HFA Advantage Mortgage Program
For buyers who want to finance a home with minimal money down:
- Offers up to 97% loan-to-value (LTV) conventional financing
- Can be paired with down payment assistance
- Accepts a minimum credit score of 620
- Income limits apply and vary by county
- Great for buyers with limited cash savings but decent credit
🏡 Homeward Bound Program
Designed to increase access to government-backed loans, this program features:
- A 30-year fixed-rate FHA, VA, or USDA loan
- Can be paired with up to $15,000 in down payment assistance
- Allows for higher income limits than many other programs
- Suitable for moderate-income buyers who don’t qualify for the lowest-income programs
🏘️ Local County & Municipal Programs
In addition to statewide grants, many counties and municipalities offer their own incentives. Here are a few examples:
Camden County
- Offers up to $25,000 in forgivable loans for down payment and closing costs
- Must meet income requirements and complete a homebuyer course
Bergen County (American Dream Program)
- Provides up to $65,000 in second mortgage assistance
- Offers matching funds up to $10,000 that may be forgiven after 10 years
- Structured to create long-term affordability
Monmouth County
- Offers localized grants for residents of one year or more
- Requires a certified homebuyer education course
- Great for families seeking to stay rooted in their communities
Other counties like Essex, Hudson, and Union also offer local grants and low-interest second mortgages. Contact the housing department in your target town for specific info.
✅ Basic Eligibility Criteria
Most New Jersey first-time homebuyer programs have similar core requirements:
- Must be a first-time buyer (no ownership in the last 3 years)
- The home must be used as your primary residence
- Must meet income and purchase price limits (varies by location)
- Must complete a HUD-approved homebuyer education course
- Must work with a participating lender
🛠️ Tips for First-Time Buyers
- Start by reviewing your credit score and cleaning up any issues
- Get pre-approved with a participating lender familiar with NJ grant programs
- Complete your homebuyer education course early to save time later
- Set realistic expectations about what you can afford and where
📞 Get Help From a Local Expert
At NJLiveHomes, we work closely with first-time buyers across North Jersey — helping them qualify for grants, connect with lenders, and secure the right property.
Whether you’re buying in Clifton, Montclair, Paterson, Totowa, or anywhere in North Jersey, we’ll help you understand your options and take advantage of every program available.
📱 Call or text Raied Muheisen at 862-247-6067
📅 Or schedule a time here: calendly.com/raiedmuheisen
Posted by NJLiveHomes.com – Your trusted local guide for real estate, grants, and homeownership opportunities in New Jersey.
