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NJHMFA Down Payment Assistance Program (DPA)

New Jersey Housing and Mortgage Finance Agency (NJHMFA) · New Jersey

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Assistance

$10,000–$15,000

The maximum the program publishes — not an offer

Income limit

140% AMI

Of area median income; varies by county and household size

Price cap

$1.3M

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is NJHMFA Down Payment Assistance Program (DPA)?

NJHMFA Down Payment Assistance Program (DPA) is a forgivable loan for homebuyers in New Jersey, administered by New Jersey Housing and Mortgage Finance Agency (NJHMFA).

  • The NJHMFA statewide Down Payment Assistance Program (DPA) provides qualified first-time homebuyers up to $15,000 toward down payment and/or closing costs, with the amount based on the county of the property ($15,000 in 12 higher-cost counties, $10,000 in 9 lower-cost counties). The DPA is an interest-free, five-year forgivable second loan with no monthly payment. It must be paired with an NJHMFA first mortgage. It is distinct from, but stackable with, the NJHMFA First Generation DPA, which adds $7,000 for eligible first-generation buyers.
  • Up to $15,000 toward down payment and/or closing costs.
  • Interest-free (0%).
  • No monthly payment.
  • Fully forgivable after 5 years of primary residence.
  • Pairs with 30-year fixed NJHMFA first mortgage.
  • Stackable with First Generation DPA ($7,000).
  • Funding comes from NJHMFA (state housing finance agency funds / bond proceeds).

How much assistance does it provide?

NJHMFA Down Payment Assistance Program (DPA) offers between $10,000 and $15,000 in assistance.

  • Award tiers: $15,000: Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Union. $10,000: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem, Sussex, Warren.
  • Buyer contribution: Down payment per insurer guidelines (FHA 3.5%; VA/USDA may be zero); DPA can fund it.
  • The program can be combined with NJHMFA First Generation DPA ($7,000); pairs with FTHB, Homeward Bound, HFA Advantage first mortgages.
  • Amounts are the program's published maximums, not an offer — New Jersey Housing and Mortgage Finance Agency (NJHMFA) determines any individual award.

Do you have to pay it back?

NJHMFA Down Payment Assistance Program (DPA) is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Repaid if borrower does not reside as principal residence for five years from closing, or refinances/conveys the first mortgage within five years.
  • The assistance is recorded in Second (subordinate) lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

NJHMFA Down Payment Assistance Program (DPA) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Waived for properties in Urban Target Areas and for Qualified Veterans (must not own another primary residence at closing).
  • The home is occupied as a primary residence
  • On credit: Set by NJHMFA lender guide and insurer (FHA/VA/USDA); specific minimum not published.
  • Residency: No NJ residency requirement to apply; property must be in NJ and occupied as principal residence within 60 days.
  • Citizenship or immigration status: U.S. citizen or permanent legal resident.
  • DRAFT (dpa-gap-finder 2026-06-11): pending review. Loan term: 5-year forgivable second mortgage (forgiven after 5 years of continuous primary residence with no refinance/conveyance of the first mortgage). DPA usable one time per borrower. Must pair with an NJHMFA first mortgage. May not cover seller-paid closing costs or an appraisal shortfall. Occupy within 60 days. County-tiered amount ($15,000 vs $10,000). Specific min credit score and max DTI set by lender/insurer guidelines (not published). DPA Dashboard is JS-rendered; funding figures not extracted.

The program excludes

  • Purchases above the $1.3M price cap
  • Households above 140% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

NJHMFA Down Payment Assistance Program (DPA) limits household income to 140% of the area median income, which varies by county and household size.

  • Income limits set by county; must not exceed 140% AMI. FTHB max income (140% AMI, eff. 07.28.25): most counties $158,040-$164,520; Hunterdon, Middlesex, Somerset $184,080. UTA properties qualify for higher limits.
  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

NJHMFA Down Payment Assistance Program (DPA) caps the purchase price at $1.3M.

  • Eligible property types include Single Family, Condo, Townhouse, 2-4 Unit, and Manufactured.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

NJHMFA Down Payment Assistance Program (DPA) names veterans among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

NJHMFA Down Payment Assistance Program (DPA) serves buyers purchasing anywhere in New Jersey.

  • The program targets specific areas: Urban Target Areas (UTAs): higher income/price limits and first-time requirement waived. Confirm via NJHMFA Site Evaluator.

How do you apply?

Applications for NJHMFA Down Payment Assistance Program (DPA) go through New Jersey Housing and Mortgage Finance Agency (NJHMFA), which publishes the current terms and the application steps on its own site.

  1. Contact New Jersey Housing and Mortgage Finance Agency (NJHMFA) to reserve funds

    Funds are reserved through Reserved by NJHMFA participating lender at first mortgage reservation/lock, and are subject to availability.

  2. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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