The short version
The biggest help for first-time buyers in New Jersey comes from the New Jersey Housing and Mortgage Finance Agency (NJHMFA). Its Smart Start program gives eligible buyers $10,000 to $22,000 toward the down payment and closing costs, depending on the county and the program. It is a 0% second loan with no monthly payment, and it is forgiven after five years in the home.
JahnLends is based in Woodbridge, NJ, and our team has closed numerous NJHMFA loans. We check whether you qualify, pair the assistance with the right first mortgage, and walk you through the requirements before you start house hunting.
NJHMFA down payment assistance by county
| Counties | Smart Start | Smart Start Plus First-Generation |
|---|---|---|
| Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Union | $15,000 | $22,000 |
| All other NJ counties | $10,000 | $17,000 |
First-Generation amounts include the Smart Start dollars. Program amounts and rules are set by NJHMFA and can change; see the official NJHMFA homebuyer page.
How the assistance works
- 0% interest second loan with no monthly payment.
- Forgiven after five years if you keep living in the home.
- Repaid from the proceeds if you sell, refinance, or move out before five years.
- Must be paired with an NJHMFA first mortgage: a 30-year fixed FHA, VA, or USDA loan through the agency.
Who qualifies
- First-time home buyers: generally no home owned in the previous three years.
- The home must be your primary residence, anywhere in New Jersey.
- Minimum credit score of 620.
- Household income and purchase price within NJHMFA limits for your county.
- HUD-approved homebuyer counseling completed before closing.
- Smart Start Plus First-Generation has additional first-generation buyer requirements. We confirm eligibility with you.
Pick the right first mortgage
Most first-time buyers we work with use an FHA loan, which allows a smaller down payment and more flexible credit than many conventional loans. Veterans and service members should look at a VA loan, and buyers in eligible rural areas may fit a USDA loan. If you are not using state assistance, a conventional loan may cost less over time. We run the numbers on each so you can compare.
From first call to keys
- 1
Check your numbers
We review your income, credit, and savings against the current NJHMFA income and purchase price limits for your county.
- 2
Take the homebuyer class
Complete HUD-approved homebuyer counseling. It is required for the assistance, and it is worth doing anyway.
- 3
Get pre-approved
We structure the NJHMFA first mortgage and the down payment assistance together, so your pre-approval reflects what you will actually bring to closing.
- 4
Shop and make an offer
Your agent submits the offer with your pre-approval letter. We update it for the exact price when you find the house.
- 5
Close and move in
The assistance is applied at closing. Stay in the home for five years and the assistance is forgiven.
Frequently Asked Questions
Is there a first-time home buyer grant in NJ?
New Jersey's main state program is not technically a grant. NJHMFA's Smart Start down payment assistance is a 0% interest second loan with no monthly payment that is forgiven after five years if you keep living in the home. If you sell, refinance, or move out sooner, it is repaid from the proceeds.
How much down payment assistance can I get in NJ?
Smart Start provides $15,000 in Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, and Union counties, and $10,000 in the other counties. Smart Start Plus First-Generation provides $22,000 or $17,000 by the same county split. Eligibility, income limits, and purchase price limits apply.
Who counts as a first-time home buyer in NJ?
For NJHMFA programs, generally anyone who has not owned a home in the previous three years. The home must be your primary residence.
What credit score do I need?
NJHMFA requires a minimum credit score of 620 for its first mortgage and down payment assistance. An FHA loan on its own can start lower, but 620 is the floor if you want the state assistance.
Can I use the assistance with any mortgage?
No. The assistance must be paired with an NJHMFA first mortgage (a 30-year fixed FHA, VA, or USDA loan through the agency) and closed through a participating lender or broker. Our team has closed numerous NJHMFA loans.
Do I need to take a homebuyer class?
Yes. All buyers who will live in the home must complete HUD-approved homebuyer counseling and bring the certificate to closing.
Are there income and price limits?
Yes. NJHMFA sets maximum household income and purchase price limits that vary by county and household size. We check your numbers against the current limits before you start shopping.
See what you qualify for
Start your application online, or call our Woodbridge team at (732) 754-7474.
Start Your Application →Down payment assistance is offered through the New Jersey Housing and Mortgage Finance Agency, not by JahnLends or AMS Mortgage Services. Availability, amounts, and eligibility are set by NJHMFA and subject to change, income and purchase price limits, and program approval. All loans are subject to credit approval and underwriting. This is not a commitment to lend.