How to Buy Your First Home in South Jersey With Down Payment Assistance

One of the biggest barriers to buying your first home in South Jersey isn't finding the right house — it's coming up with the cash to close. Between the down payment, closing costs, and moving expenses, the upfront number can feel out of reach.

What most first-time buyers don't know is that New Jersey offers forgivable assistance specifically designed to close that gap. Here's how it works.

The NJHMFA Down Payment Assistance Program: Up to $15,000

The New Jersey Housing and Mortgage Finance Agency offers up to $15,000 toward your down payment and closing costs through its Down Payment Assistance Program. The money is structured as a 0% interest, five-year forgivable second mortgage — no monthly payments, no interest charges, and completely forgiven after five years if you remain in the home as your primary residence without selling or refinancing early.

In plain terms: stay in your home for five years and you never pay it back.

A few key details:

• Must be paired with an NJHMFA first mortgage originated through an approved lender

• The home must be your primary residence in New Jersey

• Must meet income limits for your household size and county

• Property must be a single-family home, condo, townhome, or multi-family up to four units

• Minimum credit score typically 620

Not every lender in South Jersey is NJHMFA-approved. If your lender isn't familiar with this program, you may be leaving $15,000 on the table without realizing it. Ask specifically before you assume.

The First Generation Down Payment Assistance Program: Up to $7,000 More

If neither you nor your parent(s) have ever owned a home, you may qualify for this additional NJHMFA program on top of the standard $15,000 DPA. It is designed to stack directly with the standard program — both are administered by NJHMFA through the same approved lender — bringing your total potential assistance to up to $22,000.

This is one of the most underutilized programs in the state simply because buyers don't know it exists. If you're the first in your family to buy a home, ask your lender about this before you do anything else.

Individuals who were formerly in foster care in New Jersey may also qualify for this program.

The NJHMFA First-Time Homebuyer Mortgage

The down payment assistance programs above are accessed through an NJHMFA first mortgage — a competitive 30-year fixed-rate loan available as FHA, VA, or USDA depending on your eligibility. The mortgage and the assistance go hand in hand; you can't get the DPA without the NJHMFA loan.

These loans are offered through a network of approved lenders across New Jersey. Rates are competitive, and the programs are designed specifically for buyers who meet income and credit guidelines.

Full details and the approved lender list: nj.gov/dca/hmfa/homeownership/buyers

One Important Note on Funding

NJHMFA down payment assistance programs are funded annually, and in high-demand years the funds can be fully committed before year-end. If you're planning to buy in 2026, don't wait. Connect with an NJHMFA-approved lender early so you're in position to apply as soon as you have a contract.

What You Need to Qualify

Most NJHMFA programs require:

• First-time homebuyer status (or purchasing in a designated target area)

• Minimum credit score of 620

• Income within program limits for your county and household size

• Completion of a HUD-approved homebuyer education course

• The home must be your primary residence

The homebuyer education course is typically a one-day online class. It's a requirement, not a suggestion — and it's worth every minute if it unlocks up to $22,000 in assistance.

The Bottom Line

Up to $22,000 in forgivable assistance is available to qualified first-time buyers in South Jersey right now. The programs are real, the money is there, and the biggest reason buyers miss out is simply not knowing to ask.

At Prime Realty Partners, we work with NJHMFA-approved lenders who know these programs inside and out. If you want to understand what you qualify for before you start your home search, reach out — we'll connect you with the right people before you look at a single house.