Down Payment Path

Down Payment Assistance Programs in New Jersey

New Jersey offers a variety of programs to assist homebuyers with down payments and closing costs. These initiatives are designed to make homeownership accessible to a wide range of buyers, including both first-time and repeat purchasers across the Garden State.

NJHMFA Down Payment Assistance Program

The New Jersey Housing and Mortgage Finance Agency (NJHMFA) Down Payment Assistance Program provides financial support to help buyers manage upfront costs.

  • Offers up to $15,000 in assistance as a forgivable loan.
  • Forgiveness occurs after five years of primary residency.
  • Pairs with NJHMFA's affordable mortgage products, including FHA, VA, and USDA loans.
  • Open to buyers meeting income and purchase price limits.

Smart Start Program

The Smart Start Program is designed to help buyers in targeted areas by providing additional financial assistance.

  • Offers up to 4% of the mortgage loan amount to cover down payments and closing costs.
  • Available to buyers purchasing in specific revitalization zones across New Jersey.
  • Can be paired with NJHMFA first mortgage products for added affordability.

USDA Rural Development Loans

For buyers in rural areas of New Jersey, the USDA Rural Development Loan offers no down payment financing options.

  • Open to low- and moderate-income buyers in USDA-eligible areas.
  • Features flexible credit requirements and competitive interest rates.
  • Can be combined with NJHMFA programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program provides significant tax benefits for homebuyers, reducing the long-term cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their mortgage interest paid annually.
  • Can be paired with NJHMFA loans and down payment assistance programs.
  • Income and purchase price limits apply.

Local Assistance Programs

Several cities and counties in New Jersey provide additional resources for homebuyers through grants or low-interest loans.

  • Programs in areas like Newark, Jersey City, and Camden often include incentives for buyers in revitalization neighborhoods or first responders and educators.
  • Eligibility and funding levels vary based on location and program specifics.
  • Many local programs can be combined with state-level assistance for added benefits.

New Jersey’s down payment assistance programs are designed to help buyers overcome financial barriers to homeownership. Whether you’re purchasing your first home or upgrading, these programs provide valuable resources to help you achieve your goal of owning a home in the Garden State.