If you are planning to buy in 2026, New Jersey down payment assistance can make a major difference, especially in higher-cost areas like Bergen County. The main statewide option is through NJHMFA (New Jersey Housing and Mortgage Finance Agency), and eligible buyers may qualify for help with both down payment and closing costs.

NJHMFA Down Payment Assistance in 2026

NJHMFA’s statewide Down Payment Assistance Program (DPA) offers up to $15,000, based on the county where the home is located. The program is structured as an interest-free, five-year forgivable second loan with no monthly payment. It must be paired with an NJHMFA first mortgage loan through a participating lender.

NJHMFA also explains that a typical first-time homebuyer is someone who has not owned a home in the previous three years, and the property must be a primary residence in New Jersey. Income and purchase price limits apply, and buyers should confirm current limits before applying.

First-Gen Help: Extra Assistance for Eligible Buyers

For buyers who qualify as first-time and first-generation homebuyers, NJHMFA offers an additional $7,000 through its First Generation Down Payment Assistance Program. When combined with the regular NJHMFA DPA, total assistance can reach $17,000 to $22,000, depending on the county.

NJHMFA states this first-generation program must be paired with an NJHMFA first mortgage and DPA. It is also a forgivable, no-interest second loan (with no monthly payment), generally forgiven after five years if program conditions are met. NJHMFA also includes a pathway for certain buyers who have been in foster care in New Jersey.

How to Qualify (Quick Checklist)

To qualify for New Jersey down payment assistance in 2026, buyers should generally be prepared to:

• work with an NJHMFA participating lender

• buy a primary residence in NJ

• meet credit score and debt-to-income requirements

• meet income and purchase price limits

• confirm whether they meet first-time and/or first-generation definitions