NJHMFA Mortgage & Assistance Programs Make Buying a Home in NJ More Affordable
Buying a home in New Jersey can feel overwhelming — especially with today’s home prices and interest rates. But if you’re a first-time buyer (or haven’t owned a home in the past 3 years), the New Jersey Housing and Mortgage Finance Agency (NJHMFA) offers programs that could make your dream home more affordable.
The catch? Not every lender participates in these programs — but I can connect you with lenders who do.
What is NJHMFA?
The New Jersey Housing and Mortgage Finance Agency is a state agency that provides affordable mortgage options, down payment assistance, and other resources to help qualified buyers become homeowners.
These programs are designed to reduce upfront costs and make monthly payments more manageable.
NJHMFA Programs & Benefits
1. NJHMFA First-Time Homebuyer Mortgage Program
What it is: A fixed-rate, low-interest mortgage available to first-time homebuyers (or those who haven’t owned in 3+ years).
Benefits: Affordable monthly payments, stable interest rate, and the ability to pair with down payment assistance.
Requirements:
Must meet income and purchase price limits (varies by county).
Must complete homebuyer education.
Must use an NJHMFA-approved lender.
2. Down Payment Assistance (DPA) Program
What it is: A $15,000 forgivable loan to cover down payment and closing costs.
Benefits:
No monthly payments.
Forgiven after 5 years of living in the home as your primary residence.
Requirements:
Used with an NJHMFA First-Time Homebuyer mortgage.
Property must be in New Jersey and fall within program purchase price limits.
3. Police and Firemen’s Retirement System Mortgage Program
What it is: A program offering affordable mortgage rates exclusively to active members of the PFRS.
Benefits:
Fixed-rate financing.
No income limits.
Requirements: Must be an active member of the Police and Firemen’s Retirement System.
4. Homeward Bound Program (select counties & situations)
Designed to help households move from renting into homeownership with competitive rates and flexible underwriting standards.
May be combined with DPA for maximum affordability.
5. HEROES Program
What it is: An enhanced version of NJHMFA’s Down Payment Assistance program designed to support New Jersey’s community heroes.
Who qualifies:
Police officers
Firefighters
EMS/first responders
Teachers
Military (active duty, reservists, veterans)
Benefits:
An additional $7,500 forgivable loan on top of the standard $15,000 DPA (for a total of up to $22,500) toward down payment and closing costs.
No monthly payments, forgiven after 5 years if the home remains your primary residence.
Requirements:
Must pair with an NJHMFA First-Time Homebuyer mortgage.
Must meet income and purchase price limits.
Must use an NJHMFA-approved lender.
Why Work With the Right Lender?
Here’s the key: Not every lender offers NJHMFA programs. Even if you qualify, many buyers miss out simply because their bank or mortgage broker doesn’t participate.
That’s where I come in! I can connect you with trusted NJHMFA-approved lenders who actually offer these programs and guide you through the process from start to finish.
If you’ve been thinking about buying a home in Wayne, Packanack, or anywhere in New Jersey, the NJHMFA programs could make it possible sooner than you think.
Ready to find out if you qualify? Schedule a consultation today. I’ll connect you with a participating lender and help you take the first step toward homeownership.
