NJ First-Time Home Buyer Income Limits for 2026

House keys on a wooden table, representing NJ first-time home buyer programs and income limits

Short answer: For NJHMFA’s first-time home buyer program, the 2026 income limit in Morris and Sussex counties is $138,400 for a household of one or two people and $159,160 for three or more. In Warren County it’s $134,600 and $154,790. Limits are higher in Urban Target Areas, and FHA, HomeReady and Home Possible loans each follow their own rules.

This is general information, not legal, tax or lending advice. Program rules change, so confirm the current limits with an NJHMFA-participating lender, and talk to your attorney or accountant about your own situation.

NJHMFA First-Time Home Buyer Income Limits: Morris, Sussex and Warren

The New Jersey Housing and Mortgage Finance Agency (NJHMFA) runs the state’s main first-time buyer mortgage and its Down Payment Assistance (DPA) program. The income limits below come from NJHMFA’s consumer fact sheet effective June 17, 2026. They apply whether or not you also use DPA.

County Household of 1–2 Household of 3+ Urban Target Area, 1–2 Urban Target Area, 3+
Morris $138,400 $159,160 $166,080 $193,760
Sussex $138,400 $159,160 $166,080 $193,760
Warren $134,600 $154,790 $161,520 $188,440

The standard limits equal 100% of area median income for one- or two-person households and 115% for three or more. In Urban Target Areas, the limits rise to 120% and 140%. Your lender can tell you whether a specific address falls in a target area.

Purchase Price Limits

NJHMFA also caps the purchase price. Morris and Sussex share Essex and Union counties’ higher limits, while Warren’s are much lower.

County 1 unit 2 units 3 units 4 units
Morris and Sussex $1,306,975 $1,673,445 $2,022,730 $2,513,895
Warren $566,355 $725,146 $876,496 $1,089,341

Urban Target Area price limits are higher still. NJHMFA also notes that FHA and VA maximum loan amounts apply when they’re lower.

Who Counts as a First-Time Buyer in NJ?

For NJHMFA, you’re a first-time buyer if you haven’t had an ownership interest in your primary residence during the past three years. So someone who sold a home four years ago and has rented since can qualify again.

There are two exceptions. Buyers in an Urban Target Area and qualified veterans don’t have to be first-time buyers, but they can’t own another primary residence at closing. Everyone must move in within 60 days of closing.

How Much Down Payment Help Can You Get?

  • NJHMFA DPA: $15,000 in Morris County and $10,000 in Sussex and Warren. It’s a 0% forgivable loan with no monthly payments, forgiven after five years if the home stays your primary residence and you don’t refinance. You can use it once, and you’ll need a homebuyer counseling certificate.
  • Smart Start Plus / First Generation Homebuyer: NJHMFA’s fact sheet describes an extra $7,000 on top of DPA, for $22,000 total in Morris County and $17,000 in Sussex and Warren. It’s for first-time buyers whose parents or legal guardians don’t currently own residential property, or for anyone who was ever in NJ foster care. Ask your lender whether funding is currently open.
  • Credit: NJHMFA’s homebuying eligibility checklist lists a 620 minimum credit score, and you also have to meet debt-to-income rules.

For a broader look at grants and loans, see our guide to first-time home buyer programs in New Jersey.

Other Loans With Income Limits

Fannie Mae HomeReady and Freddie Mac Home Possible are low-down-payment conventional loans with an income cap of 80% of area median income. Home Possible allows 3% down. Neither loan is limited to first-time buyers. These programs use Fannie Mae’s and Freddie Mac’s own area median income figures, not NJHMFA’s, so check the address in each one’s online lookup tool.

Police and firefighters who are members of the Police and Firemen’s Retirement System with at least one year of service can use NJHMFA’s PFRS mortgage. It has no first-time buyer requirement, but it can’t be combined with NJHMFA DPA.

What These Limits Mean in Morris County

Morris County’s NJHMFA price cap is well above typical prices. NJ REALTORS reported a September 2026 median single-family price of $737,500 for the county. The tighter test for most households is income: a two-person household earning more than $138,400 won’t qualify for the standard program in Morris County.

Warren County’s price cap of $566,355 for a single-family home matters more, so check it before you shop. To see what income a Morris County purchase takes, read how much you need to earn to buy a home in Morris County. If you’re still deciding, start with is buying a house in NJ worth it in 2026?

Frequently Asked Questions

What is the income limit for first-time home buyers in NJ?

For NJHMFA’s program in Morris and Sussex counties, it’s $138,400 for households of one or two and $159,160 for three or more (effective June 17, 2026). Warren County’s limits are $134,600 and $154,790.

How much down payment assistance can I get in Morris County?

NJHMFA’s DPA provides $15,000 in Morris County as a forgivable 0% loan. First-generation buyers may qualify for up to $22,000 total through Smart Start Plus.

Can I be a first-time buyer in NJ if I owned a home before?

Yes, if you haven’t had an ownership interest in a primary residence in the past three years. Veterans and buyers in Urban Target Areas are exempt from the first-time rule.

Do HomeReady and Home Possible have income limits?

Yes. Both cap qualifying income at 80% of area median income for the property’s location, and neither requires you to be a first-time buyer.

Sources

Talk to the MorrisAgent Team

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