Yes, NJHMFA down payment assistance can generally be paired with an FHA first mortgage for eligible New Jersey buyers. The NJHMFA help is a second loan, not a free grant, and the amounts, income limits and terms are set by NJHMFA and change over time, so confirm current numbers before you plan around them.

What NJHMFA down payment assistance is

The New Jersey Housing and Mortgage Finance Agency (NJHMFA) offers programs that help eligible buyers with down payment and closing costs. The help is usually structured as a second mortgage that sits behind your first mortgage. The terms, including whether and when it is forgiven or repaid, depend on the program, so read them carefully.

How the FHA and NJHMFA pairing works

  1. An FHA loan is your first mortgage. FHA allows a down payment as low as 3.5% for qualifying borrowers.
  2. The NJHMFA assistance can be applied toward the down payment and closing costs, within program rules.
  3. A seller concession can help with remaining closing costs where the contract and loan program allow it.

Whether the pairing fits depends on your credit, income, the property and the program version you qualify for.

Who typically qualifies

  • First-time buyers, or buyers who meet the program's definition (some programs have exceptions)
  • Household income and purchase price within NJHMFA limits for the county and household size
  • A credit score that meets the program and lender minimums
  • A completed homebuyer education course
  • A primary residence, not an investment property

Common misunderstandings

  • "It's a grant." It is typically a second loan with its own repayment or forgiveness rules. Ask how it works if you sell or refinance.
  • "Any lender can do it." NJHMFA loans must go through participating lenders, and not every lender offers them.

How to apply

Start with a pre-approval that is set up for the program, before you start touring homes. Call JahnLends at (732) 754-7474 or start your pre-approval online. You can also see our first-time NJ buyer checklist and the video FHA loans: 3.5% down and credit score basics.

Program amounts, eligibility and terms are set by NJHMFA and may change without notice. Verify current details at njhmfa.gov. 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.