These questions and answers are intended to provide general information and are not the final word on program requirements. For more information: see the information for the program you are interested in, call a participating lender, or call our toll free hotline 1-800-NJ-HOUSE (654-6873).
Am I a First-Time Homebuyer?
A first-time homebuyer is someone who has not owned a home for the past three years. If the house you are buying is in one of the designated Urban Target Area neighborhoods (use the Site Evaluator tool to determine if your property is within an Urban Target Area) you do not have to be a first-time buyer, however, you cannot own any other houses.
Do I have to be a New Jersey resident to apply for a loan?
No, but the property you are buying must be in New Jersey and you must occupy it as your principal residence.
Do I have to be a citizen of the U.S. to apply?
No, but you must be a permanent legal resident.
Are there income and purchase price restrictions for the First-Time and Urban Target Area Homebuyers?
Yes, the federal tax laws require that maximum household income and purchase prices be set for each county.
Where do I apply for a loan?
Loan applications are made through our participating private lenders.
What are the requirements for the Police and Fire Mortgage Program?
Borrowers must be active members of the Police and Fire Retirement System Mortgage Program with at least one year of creditable service. There are no income or purchase price limits, but there is a maximum mortgage loan amount.
What if I have bad credit or no credit?
Every borrower’s credit history has to be individually considered. It is not a good idea to make assumptions about whether one’s credit is good or bad. You can have a lender to evaluate your credit history and pre-qualify you for a loan or advise you about what you need to do to prepare to become “mortgage ready.” Credit counseling agencies are an excellent resource if your credit needs to be repaired.
How much can I borrow based on my salary?
The amount varies based on the interest rate, length of the mortgage term, taxes and insurance costs, condo fees, and other factors. There is a mortgage calculator on this website that can give you an estimated amount.
What is the New Jersey Housing and Mortgage Finance Agency?
NJHMFA is a statutorily authorized entity of the State of New Jersey. The Agency is empowered to raise money by issuing tax-exempt bonds. Since the Agency’s borrowing costs are low, it can pass the savings along in the form of low-interest rate mortgage loans to qualified home buyers. The Agency also is empowered to finance multifamily rental housing and is the allocating agency for the federal Low Income Housing Tax Credit program.