Learn More About the First Time Home Buyer $10,000-$17,000 Assistance Program
Buying your first home in New Jersey can feel like a mountain to climb, especially when you factor in down payment and closing costs. The good news is New Jersey offers strong assistance through NJHMFA programs, and buyers purchasing in Atlantic County and Cape May County can qualify for meaningful help.
What Is the NJ First-Time Home Buyer Assistance Program?
The programs below are administered by the New Jersey Housing and Mortgage Finance Agency (NJHMFA). In most cases, buyers pair a 30-year fixed-rate first mortgage with a forgivable Down Payment Assistance (DPA) second loan.
Important: DPA is not “free cash” at closing
- No interest
- No monthly payments
- Forgiven after 5 years if you live in the home continuously as your primary residence
- Not forgiven if you refinance or sell/transfer before the 5-year period is complete
- DPA may only be used one time
How Much Assistance Can You Get in Atlantic & Cape May Counties?
Standard Down Payment Assistance (DPA)
For homes purchased in Atlantic County or Cape May County, NJHMFA’s DPA amount is:
Up to $10,000 toward down payment and/or closing costs
This is a forgivable, interest-free second loan with no monthly payment, forgiven after 5 years (if program rules are met).
First-Generation Homebuyer Bonus (If You Qualify)
NJHMFA’s First Generation Homebuyer Program provides an additional:
- $7,000 toward down payment and/or closing costs
- Must be paired with an NJHMFA first mortgage and the standard DPA
Total possible assistance in Atlantic & Cape May Counties: $17,000
First-generation is defined as a first-time homebuyer whose parents/guardians do not currently own residential real property, or an individual who has at any time been placed in foster care in New Jersey.
Income Limits (Atlantic & Cape May Counties)
NJHMFA programs use maximum household income limits based on the county where the property is located.
| Program / Area | Household Size | Max Income |
|---|---|---|
| Homeward Bound (County-based limit) | Household | $158,040 |
| HFA Advantage (County-based limit) | Household | $158,040 |
| First-Time Homebuyer (standard areas) | 1–2 person household | $131,700 |
| First-Time Homebuyer (standard areas) | 3+ person household | $151,455 |
Some locations qualify as Urban Target Areas (UTA), which allow higher income limits under the First-Time Homebuyer program.
Urban Target Areas (UTA) in Atlantic & Cape May Counties
| First-Time Homebuyer (UTA limits) | Household Size | Max Income |
|---|---|---|
| Atlantic & Cape May (UTA) | 1–2 person household | $158,040 |
| Atlantic & Cape May (UTA) | 3+ person household | $184,380 |
Purchase Price Limits (Atlantic & Cape May Counties)
NJHMFA sets maximum purchase price limits by county and property type (1–4 units). Below are the standard First-Time Homebuyer purchase price limits for Atlantic and Cape May Counties.
| County | 1 Unit | 2 Units | 3 Units | 4 Units |
|---|---|---|---|---|
| Atlantic | $544,233 | $696,817 | $842,238 | $1,046,783 |
| Cape May | $617,242 | $790,200 | $955,165 | $1,187,039 |
Note: Higher purchase price limits apply in Urban Target Areas under the First-Time Homebuyer program. FHA and VA maximum mortgage amounts may apply if more restrictive.
Who Qualifies as a First-Time Homebuyer?
- You are considered a first-time homebuyer if you have not owned a home in the last 3 years.
- If the home is located in an Urban Target Area, you may not need to be a first-time buyer, but you cannot own any other houses.
- You do not have to be a New Jersey resident to apply, but the home must be in NJ and you must live in it as your principal residence.
- You do not have to be a U.S. citizen, but you must be a permanent legal resident.
Eligible Properties
Eligible properties include:
- Single-family homes
- Condominiums
- Townhomes
- Manufactured or mobile homes permanently affixed to real property owned by the borrower
- 2–4 unit properties (you must occupy one unit as your primary residence)
The property must be your primary residence and must be occupied within 60 days of closing.
What You Can (and Can’t) Use DPA Funds For
You can use DPA for
- Down payment
- Eligible closing costs
You cannot use DPA for
- Closing costs customarily paid by the seller
- Appraisal shortfalls (when appraised value is less than purchase price)
How to Apply
- Choose the town/area you want to buy in (UTA status can change your limits).
- Connect with an NJHMFA participating lender and apply for an NJHMFA first mortgage.
- If approved, the lender will structure the assistance (DPA, and First-Generation assistance if applicable).
NJHMFA loans are originated through participating private lenders.
FAQ: NJ First-Time Home Buyer Assistance (Atlantic & Cape May Counties)
Is the down payment assistance a grant?
It is a forgivable loan with no interest and no monthly payments. It is forgiven after 5 years if you live in the home continuously as your primary residence and do not refinance or sell/transfer ownership.
How much is the assistance in Atlantic and Cape May Counties?
The standard NJHMFA DPA for properties in Atlantic and Cape May Counties is up to $10,000. If you qualify as a First-Generation Homebuyer and pair it correctly, total assistance can be $17,000.
Do I have to be a New Jersey resident to apply?
No. But the home must be located in New Jersey and you must occupy it as your principal residence.
Do I have to be a U.S. citizen?
No, but you must be a permanent legal resident.
Can I use DPA money for closing costs?
Yes, for eligible closing costs. DPA funds cannot be used for closing costs customarily paid by the seller, and cannot cover an appraisal shortfall.
Where do I apply?
You apply through an NJHMFA participating lender. NJHMFA does not take loan applications directly.
What if I buy in an Urban Target Area (UTA)?
UTAs can allow higher income and purchase price limits under the First-Time Homebuyer program, and you may not need to be a first-time buyer (but you cannot own another house).