Navigating the housing market in 2024 has become increasingly complex, marked by soaring rates, dwindling inventory, and skyrocketing home prices. For first-time homebuyers, saving for a hefty down payment in such circumstances can seem impossible. In February alone, the housing market in New Jersey felt the weight of these shifts, with home prices surging by an astonishing 14.3% year-over-year, while homes sold saw a 1.9% decline, and available listings plummeted by 11.5%, according to data from Redfin.com.

Amidst these challenging circumstances, finding your footing as a first-time homebuyer can seem difficult at times. However, Greenway Mortgage offers a variety of New Jersey First-time Homebuyer programs to help you out when buying a home.

Are you ready to take a closer look at some of these programs?

#1: The Monmouth County, New Jersey First-Time Homebuyers Assistance Program

The Monmouth County, NJ First Time Homebuyer Assistance Program is designed to provide financial assistance to low-income families to purchase an affordable home in the form of a deferred payment second mortgage loan in an amount not to exceed $10,000 for down payment and closing costs (only).

Program Highlights:

• MUST BE a resident of Monmouth County for 1 YEAR before applying for a grant.
• ALL applicants must complete a pre-purchase housing counseling course and provide a certificate of completion with the First-Time Homebuyer application.
• MUST BE an individual(s) that never owned a home (except if an applicant has previously owned a home, he/she still may qualify if they meet 1 or more of the following criteria:
  • An individual that has not owned a home in 3 years prior to receiving home assistance.
• An individual who is a single parent even if the individual owned a home with his or her spouse or resided in a home owned by the spouse
• An individual who is a displaced homemaker even if as a homemaker the individual owned a home with his or her spouse or resided in a home owned by the spouse.

The Fine Print:

• Property MUST be the principal residence
• Applicant must purchase a house located in the participating municipalities ONLY.
• Fist-time homebuyer can only purchase a 1-4 family property or condominium unit.
• Housing unit cannot exceed the max purchase price of $337,000 for 1-family & condominium, $432,000 for 2-family unit, $532,000 for a 3-family unit and $648,000 for a 4-family unit.
• Mobile homes are not eligible for purchase using First-time Homebuyer program funds
• Co-signor not allowed
• Eligibility requirements, exclusions and other terms and conditions apply.

For more information and homebuyer eligibility on the Monmouth County, New Jersey First-Time Homebuyers Assistance Program click here.

#2: New Jersey Conventional Down Payment Assistance Program (DPA)

The state of NJ offers a conventional version of their down payment assistance program for first-time homebuyers. Qualified borrowers can receive $15,000 to be used towards down payment and closing with affordable mortgage insurance premiums that follow conventional mortgage guidelines in certain NJ counties*.  All other counties will remain at $10,000.

Program Highlights:

• 30-year, Fixed-Rate Conventional Loan
• Affordable Mortgage Insurance Premiums
• $15,000 for Down Payment and Closing Costs*

County List:

• *$15,000 applies to: Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, and Union. Effective November 1, 2022.
• $10,000 applies to: Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem, Sussex, Warren.

The Fine Print:

• First-time buyers are borrowers that have not had an ownership interest in their primary residence during the previous three years
• DPA is a $15,000 forgivable loan with no interest and no monthly payments. Forgiven after 5 years as primary residence (While grant funds are available)
• Single-Family Properties and Condos, Owner Occupied, Primary Residence in NJ, Minimum FICO 620
• Income limits are determined by the county of the purchase property but must not exceed 80% of Area Median Income. Please reference the Freddie Mac HFA Income Limits for additional details
• Eligibility requirements, exclusions and other terms and conditions apply.

For more information and homebuyer eligibility on the NJ Conventional DPA Program click here.

#3: New Jersey First-Generation Down Payment Assistance (DPA) Program

This program aims to provide significant assistance for down payments and closing costs to homebuyers, offering a generous $7,000 contribution to those who qualify. When paired with an NJHMFA First Mortgage and the Down Payment Assistance Program, eligible homebuyers can receive up to $22,000 in assistance! The amount varies depending on the county where the property is located.

Program Highlights:

• Owner occupied, primary residence in NJ
• 30-year Fixed-rate mortgage options available for home purchases only
• $22,000 for down payment & closing costs when paired with DPA in certain NJ counties

The Fine Print:

• Must be a first-generation homebuyer
• Min credit score 620; must meet DTI requirements
• Must be paired with an NJHMFA first mortgage loan and the DPA; DPA is a forgivable loan with no interest and no monthly payments
• Single-Family, Condo, Townhome, Co-ops, 2-4 units
• Ineligible for Police & Fireman Program
• Eligibility requirements, exclusions and other terms and conditions apply.

For more information and homebuyer eligibility on the NJ First-Generation DPA Program click here.

Bottom Line:

If you’re a New Jersey homebuyer, take advantage of these homebuying programs so you can achieve your homeownership goals while minimizing your costs. To learn more about these programs and determine your eligibility, click on the links provided or contact us directly at 888-616-9885. We're here to assist and answer any questions you may have.

Click here to connect with a Greenway Mortgage Loan officer today.