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NJHMFA Police and Firemen's Retirement System (PFRS) Mortgage Program

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

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What is NJHMFA Police and Firemen's Retirement System (PFRS) Mortgage Program?

NJHMFA Police and Firemen's Retirement System (PFRS) Mortgage Program is a first mortgage for homebuyers in New Jersey, administered by New Jersey Housing and Mortgage Finance Agency (NJHMFA).

  • A special first-mortgage program funded by the Police and Firemen's Retirement System of New Jersey (PFRSNJ) and administered by NJHMFA. It offers active, currently-employed police officers and firefighters who are PFRS members with at least one year of creditable service a below-market fixed-rate mortgage to purchase a one- or two-family residence or condominium in New Jersey. The interest rate is set twice a year (February and August) at the 10-year Treasury bill plus 1%. Loans are originated through NJHMFA-approved participating lenders, for purchase transactions only.
  • Below-market fixed rate (10-year Treasury + 1%, reset Feb and Aug).
  • Funded by the PFRS pension fund for NJ police and firefighters.
  • Purchase of 1-2 family homes and condos in NJ.
  • No first-time homebuyer requirement (25% of funds reserved for first-time buyers).
  • Secondary financing permitted per Fannie Mae guidelines.
  • Funding comes from Police and Firemen's Retirement System of New Jersey (PFRSNJ) pension fund; administered by NJHMFA.

Do you have to pay it back?

NJHMFA Police and Firemen's Retirement System (PFRS) Mortgage Program is a first mortgage and is repaid under the terms set by New Jersey Housing and Mortgage Finance Agency (NJHMFA).

  • Repayment is triggered by Entire loan plus accrued interest due on the 120th day after borrower sells or ceases to occupy as principal residence; mortgage not assumable.
  • 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 Police and Firemen's Retirement System (PFRS) Mortgage Program is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • Residency: Property in NJ; occupy as principal residence within 120 days of closing.
  • DRAFT (dpa-gap-finder 2026-06-11): pending review. Borrower must be a currently employed police officer or firefighter who is a PFRS member with at least one year of creditable service (N.J.S.A. 43:16A-1 et seq.). Max LTV 85%; max mortgage = Fannie Mae conforming limit (landing page cites $766,550, a 2024 figure that may be stale). Mortgage is NOT assumable; entire balance plus accrued interest is due on the 120th day after the borrower sells or ceases to occupy as principal residence. NJHMFA standard DPA cannot be combined with PFRS. Tax risk: relies on a counsel opinion that loans are not taxable pension distributions. Loan term (30-year) appears on the landing page but not the fact sheet. MI required if down payment under 20%.

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 kind of home can it be used for?

NJHMFA Police and Firemen's Retirement System (PFRS) Mortgage Program caps the purchase price as follows: No stated max purchase price; max mortgage = Fannie Mae conforming limit (excluding high-balance/jumbo); landing page cites $766,550. Max LTV 85%.

  • Eligible property types include Single Family, 2-4 Unit, Condo, and Vacant Land for Construction.
  • New construction is eligible.

Is there eligibility for specific groups?

NJHMFA Police and Firemen's Retirement System (PFRS) Mortgage Program names law enforcement officers and firefighters among the groups it serves.

  • The program is also limited to employees of Currently employed police officer or firefighter who is an active PFRS member with at least one year of creditable service.
  • 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 Police and Firemen's Retirement System (PFRS) Mortgage Program serves buyers purchasing anywhere in New Jersey.

How do you apply?

Applications for NJHMFA Police and Firemen's Retirement System (PFRS) 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. Contact New Jersey Housing and Mortgage Finance Agency (NJHMFA) to reserve funds

    Funds are reserved through Originated/reserved through NJHMFA-approved participating lenders, 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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