Short answer: New Jersey buyers can combine low-down-payment loans (FHA at 3.5%, conventional at 3%, VA and USDA at 0%) with state help from the New Jersey Housing and Mortgage Finance Agency (NJHMFA), including first-time buyer mortgages and down payment assistance. Income and price limits apply, so start with a lender who works with NJHMFA.
New Jersey Housing and Mortgage Finance Agency (NJHMFA)
NJHMFA offers first-time homebuyer mortgage programs through participating lenders, and has paired them with down payment and closing cost assistance that can be forgiven if you stay in the home for a set number of years. Amounts, income limits and purchase price limits change, so check the current terms at njhousing.gov or with an approved lender.
Low-down-payment loan options
- FHA: as little as 3.5% down with more flexible credit guidelines.
- Conventional 97: as little as 3% down for qualifying first-time buyers.
- VA: 0% down for eligible veterans and service members.
- USDA: 0% down in eligible rural areas, which include parts of Sussex and Warren County.
Who counts as a first-time buyer?
For most programs, it is anyone who has not owned a primary residence in the past three years, so many people who owned years ago qualify again.
Costs first-time buyers often forget
- Closing costs, typically a few percent of the price, including attorney fees, title insurance and lender fees.
- Home inspection, plus radon and oil tank testing, which are common in North Jersey.
- Property taxes and homeowners insurance escrows collected at closing.
Your first three steps
- Get pre-approved with a lender who offers NJHMFA programs.
- Set your monthly budget, including taxes, which vary a lot by town.
- Set up new-listing alerts and talk with a buyer agent.
Still deciding? Read Should I rent or buy?
Frequently asked questions
How much do you need to put down on a house in NJ?
As little as 3% to 3.5% with conventional or FHA loans, and 0% with VA or USDA loans if you qualify. State down payment assistance may help cover part of it.
Who qualifies as a first-time home buyer in New Jersey?
Generally anyone who has not owned a primary residence in the last three years. Program income and price limits also apply.
Talk to the MorrisAgent Team. Call (973) 200-4800, email [email protected], or stop by 518 Main Street, Suite 102, Boonton. We answer questions like this every day, with no pressure and no surprises.