NJHMFA First-Time Homebuyer Mortgage Program

What is NJHMFA First-Time Homebuyer Mortgage Program?

NJHMFA First-Time Homebuyer Mortgage Program is a first mortgage for homebuyers in New Jersey, administered by New Jersey Housing and Mortgage Finance Agency (NJHMFA).

• NJHMFA First-Time Homebuyer Mortgage Program provides qualified NJ first-time homebuyers a competitive 30-year fixed-rate government-insured loan (FHA/VA/USDA) originated through a participating lender. It is the foundational first mortgage paired with the NJHMFA Down Payment Assistance second loan (up to $15,000 forgivable) and First Generation DPA. Borrowers occupy within 60 days; income and purchase-price limits apply by county and household size.
• Competitive 30-year fixed-rate first mortgage.
• Government-insured options (FHA/VA/USDA).
• Below-market rate funded by tax-exempt bonds.
• Pairs with NJHMFA DPA (up to $15,000 forgivable).
• Pairs with First Generation DPA ($7,000).
• Higher limits and first-time waiver in Urban Target Areas.
• Funding comes from NJHMFA tax-exempt mortgage revenue bonds.

Do you have to pay it back?

NJHMFA First-Time Homebuyer Mortgage Program is a first mortgage and is repaid under the terms set by New Jersey Housing and Mortgage Finance Agency (NJHMFA).

• The assistance is recorded in First 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 First-Time Homebuyer Mortgage Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

NJHMFA First-Time Homebuyer Mortgage Program limits household income to 140% of the area median income, which varies by county and household size.

• County- and household-size-based, capped at 140% AMI; UTA properties get higher tiers. Effective 07.28.25.
• 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 First-Time Homebuyer Mortgage Program caps the purchase price as follows: County/unit based (eff. 07.28.25). 1-family non-UTA: $544,233 (Atlantic/Cumberland/Mercer/Warren) to $1,255,921 (high-cost group); higher UTA limits up to $1,535,015 (1-family). FHA/VA limits prevail if lower.

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

Is there eligibility for specific groups?

NJHMFA First-Time Homebuyer Mortgage Program 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 First-Time Homebuyer Mortgage Program serves buyers purchasing anywhere in New Jersey.

• The program targets specific areas: Urban Target Areas (UTAs): first-time requirement waived and higher income limits (120%/140% AMI). Confirm via NJHMFA Site Evaluator.

How do you apply?

Applications for NJHMFA First-Time Homebuyer Mortgage Program go through New Jersey Housing and Mortgage Finance Agency (NJHMFA), which publishes the current terms and the application steps on its own site.

1. 1

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

   Funds are reserved through Reserved/originated through NJHMFA participating lenders, and are subject to availability.

2. 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.