First-Time Buyer Programs in South Jersey: What You Need to Know

Entering the housing market for the first time can feel daunting — especially in New Jersey’s high-cost environment. But there are public programs and resources designed to help first-time buyers in South Jersey get a foot in the door. Many of these are run by the NJHMFA, and when used correctly, they can significantly reduce upfront costs and make homeownership more attainable.

Here’s a breakdown of the most helpful programs — and how to know if you qualify.

✅ The Key Statewide Programs (via NJHMFA)

NJHMFA First-Time Homebuyer Mortgage Program

• Provides a 30‑year fixed-rate mortgage, secured through government‑insured loans (FHA, VA, USDA) or conventional loans via participating lenders. 
• Eligible for buyers who haven’t owned a home in the past 3 years (with some exceptions for certain targeted areas or veterans). 
• Can be used for condos, townhomes, single-family homes, and even small multi-family homes (up to 4 units, if you live in one unit). 

NJHMFA Down Payment Assistance Program (DPA)

• Offers up to $15,000 toward down payment and/or closing costs as a second mortgage. 
• The DPA loan is interest‑free, with no monthly payments, and is forgivable after 5 years — as long as you live in the home continuously as your primary residence. 
• Must use an NJHMFA approved first mortgage to qualify. 

NJHMFA First‑Generation Down Payment Assistance Program (Bonus for First-Gen Buyers)

• For buyers whose parents/legal guardians have never owned a home in the U.S. or abroad — i.e. first‑generation buyers. 
• Provides an extra $7,000 on top of the standard DPA — increasing total potential assistance to ≈ $22,000 for eligible buyers. 

🎯 Other Loan Options & Flexibility for First-Time Buyers

• Through NJHMFA’s program, you can get government-insured loans such as FHA, VA, or USDA, which allow low or even zero down payments (if eligible), making them attractive if you don’t have large savings upfront. 
• The state’s conventional-loan option under NJHMFA (sometimes called HFA Advantage or similar) gives lower down payments and can also combine with DPA assistance. 
• As long as you meet income and home‑price caps (which vary by county and family size), you may qualify. 

📋 Who Qualifies (Basic Requirements)

• You must be a first-time buyer (no homeownership in the past 3 years), unless purchasing in a designated “Urban Target Area” or under certain exceptions. 
• The home must be in New Jersey and used as your primary residence. 
• You must go through an NJHMFA‑approved lender. 
• There are income and purchase‑price limits, depending on county and number of household members. 

📌 What This Means for South Jersey Buyers

• If you’re a first-time buyer in Camden, Burlington, Gloucester (or surrounding) counties — you’re likely eligible for DPA + First-Time Mortgage when buying your first home.
• Need help with down payment or closing costs? The DPA (plus First‑Generation boost for many buyers) can cover a big chunk of upfront costs — often making homeownership viable even with modest savings.
• If cash is tight, combining a low‑down-payment loan (FHA/VA/USDA or conventional) with DPA assistance can dramatically reduce initial financial burden.
• Homes like condos, townhomes, or modest single-family houses often qualify — so first-time, budget-conscious buyers don’t always need to go for luxury or waterfront properties.

⚠️ What to Watch Out For / Key Considerations

• The DPA is technically a second mortgage — and while it’s forgivable after 5 years of continuous residence, selling or refinancing earlier may trigger repayment. There are income and price caps, so expensive homes or high incomes may disqualify you from state assistance — always check with a participating lender first.
• You must use an NJHMFA‑approved lender and follow program rules (primary residence, no other home ownership, etc.). 
• As with any loan, you’ll have to meet credit, debt-to-income, and other underwriting criteria — so being financially prepared is still important.

🔎 How to Get Started — Your Step-by-Step Checklist

1. Confirm you meet “first-time buyer” status (no home ownership in past 3 years).
2. Select a county and approximate price range — check that you meet the income and purchase-price limits for that county.
3. Contact an NJHMFA-approved lender. They’ll help evaluate MORTGAGE + DPA eligibility.
4. Get pre-approved (good credit, income, debt-to-income ratio).
5. House-hunt within eligible price ranges — condos, starter homes, townhomes work great.
6. When you find a home, apply for NJHMFA mortgage + DPA (and First‑Generation boost, if eligible).
7. Close on the home, move in, and live continuously for at least 5 years to get full DPA forgiveness.

🏠 Why This Matters — Long-Term Value for First-Time Buyers

• Reduces the barrier to entry: high down payments are often the hardest part — DPA + low-down-payment loans solve that.
• Helps first-generation buyers and younger households achieve homeownership early.
• Offers flexibility: modest homes, condos, townhomes are eligible — giving buyers room to grow.
• Builds long-term equity: instead of renting, money goes toward ownership — with many likely to benefit from appreciation in South Jersey markets.

Mary Murphy notes:

“For first-time buyers in South Jersey, NJHMFA programs aren’t just nice bonuses — they can make homeownership truly achievable. With the right plan, guidance, and timing, buyers can get a solid home, low upfront costs, and a foundation for long-term wealth.”

📲 Ready to Explore First-Time Buyer Options?

If you’re considering buying your first home in South Jersey, The Murphy Group can guide you through the eligibility, application, and home search process — maximizing what you get from state programs while simplifying the journey.

Start your first‑home search today at www.mgsells.com