You do not need 20% down to buy a house in New Jersey. Some loan programs allow as little as 3% to 3.5% down, and VA and USDA loans can allow no down payment for eligible borrowers. But your savings need to cover two things: the down payment and the closing costs.

Typical minimum down payments by loan type

  • Conventional: as low as 3% down on some programs for qualifying buyers. Putting down less than 20% usually means paying private mortgage insurance (PMI).
  • FHA: 3.5% down with a credit score of 580 or higher. See FHA loans in NJ for low credit scores.
  • VA: no down payment for many eligible veterans and service members. See VA loans in New Jersey.
  • USDA: no down payment for eligible buyers in eligible areas, subject to income limits.
  • Jumbo: usually more than conventional. See jumbo mortgages in New Jersey.

These are program minimums. Individual lenders may require more.

Do not forget closing costs

Closing costs are separate from your down payment. They typically include lender fees, appraisal, title insurance and attorney fees, and prepaid items such as property taxes and homeowners insurance. Your Loan Estimate lists them. Our article Got $30,000 saved? Here's where it really goes walks through the two buckets of cash.

Help with down payment and closing costs

Eligible New Jersey buyers may qualify for down payment assistance through NJHMFA. See how NJHMFA assistance works with an FHA loan. Sellers can sometimes contribute toward closing costs too. Read about seller concessions.

Is it better to put more down?

A larger down payment lowers your loan amount and can reduce or remove mortgage insurance, but it also uses cash you may want in reserve. The right balance depends on your goals. Our video on whether 20% down is necessary covers the trade-offs.

Frequently asked questions

What is the smallest down payment I can make?

It depends on the loan program and whether you qualify. Some programs require none, and others start at 3% or 3.5%.

Can gift money be used for a down payment?

Often yes, with documentation. Rules vary by program, so ask your loan officer before you move money around.

Call JahnLends at (732) 754-7474 or get pre-approved to see your real numbers →

Program minimums, eligibility and costs vary by lender and change over time. JahnLends is the Woodbridge, NJ branch of AMS Mortgage Services, NMLS# 145742. Equal Housing Opportunity. For information purposes only. This is not a commitment to lend or extend credit. All loans are subject to credit approval. Other restrictions may apply.