Down Payment Assistance New Jersey  ·  Licensed in NJ · CT · FL  ·  NMLS #1630225

Down Payment Assistance in New Jersey — How the FHA Programs Work

The down payment assistance New Jersey buyers get through us is an FHA second lien worth 3.5% or 5% of the price. It closes the same day as your mortgage. You need a 580 credit score, there is no income cap, and you do not have to be a first-time buyer. On the 3.5% program the second can be forgiven after 36 on-time payments; on the 5% program you pay it back.

Last updated October 2026 · reviewed by a licensed mortgage broker

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★★★★★ 5.0 on GoogleNMLS #1630225 · verify on NMLS Consumer AccessLicensed in NJ · CT · FL (FL MLB 1987)Family owned since 2017 · Ridgefield, NJ
580Minimum
Credit Score
96.5%FHA First
Mortgage LTV
100%Combined LTV
With the 3.5% DPA
No CapIncome Limit
On FHA DPA


Your Answer Right Here

Down payment assistance in New Jersey through Mortgage-World.com is an FHA program that can cover your whole down payment. Below is how it works and who qualifies.

What Down Payment Assistance Programs Are Available in New Jersey?

What we place in New Jersey is a wholesale FHA DPA program. You get a 30- or 25-year fixed FHA first mortgage and a second lien worth 3.5% or 5% of the purchase price, and both close on the same day. The second lien covers the FHA minimum down payment in full. On the 5% program, the extra can go toward closing costs.

The bar to qualify is a 580 credit score. There is no income cap, so if you qualify for the FHA loan, your income will not rule you out of the assistance. You do not need to be a first-time buyer. The home does have to be your primary residence.

Where the two programs differ is how the second gets paid back. On the 3.5% program you pick one of two versions. The forgivable second has no monthly payment, and you can ask for it to be forgiven after 36 consecutive on-time payments on your first mortgage. The repayable second costs the first mortgage rate plus 2% and is paid off over 10 years. The 5% program only comes in the repayable version, and the file needs an automated underwriting approval. If your file has to be manually underwritten, you are on the 3.5% program, and the minimum score there is 600.

You may also come across New Jersey’s state assistance, run by the New Jersey Housing and Mortgage Finance Agency. It is a separate program with its own eligibility rules, and it is not one we offer. The U.S. Department of Housing and Urban Development keeps a directory of assistance programs and housing counseling agencies for New Jersey buyers.

A free mortgage review shows you what each program would put toward your purchase. Call 888.958.5382 or apply online.


Program Comparison

FHA DPA 3.5% vs 5% — Program Comparison at a Glance

The two FHA down payment assistance programs available through Mortgage-World.com (NMLS #1630225), side by side.

Program DPA Amount Min FICO Manual Underwriting Second Lien Max CLTV
FHA 3.5% DPA 3.5% of the lower of price or appraised value 580 Allowed, 600 minimum Forgivable after 36 payments, or repayable over 10 years 100%
FHA 5% DPA 5% of the lower of price or appraised value 580 Not allowed — AUS approval required Repayable over 10 years at Note Rate + 2% 101.5%

Down Payment Assistance New Jersey – Mortgage-World.com NMLS 1630225DOWN PAYMENT ASSISTANCE NEW JERSEY  ·  MORTGAGE-WORLD.COM  ·  NMLS #1630225FHA 3.5% DPANEW JERSEYCovers FHA down paymentForgivable after 36 paymentsor repayable over 10 years580 FICO minimumManual UW OK at 6001st & repeat buyers eligibleFHA 5% DPANEW JERSEYCovers down payment + costsRepayable 10-yr at Note+2%101.5% CLTV available580 FICO minimumPayment counts in DTIAUS approval requiredON A $400,000 HOMEEXAMPLE3.5% DPA: $14,0005% DPA: $20,000Paid by the 2nd lienNot from your savingsCloses with your FHA loanAmount rises with priceWHO QUALIFIESNJ BUYERS580+ FICO (FHA DPA)Primary residence NJ1st-time & repeat buyersUS Citizens & Perm ResNon-occ co-borrowers OKHUD counseling required
Down Payment Assistance New Jersey — Mortgage-World.com NMLS #1630225 | Licensed in NJ | FHA DPA 3.5% · 5% Programs | 888.958.5382


How It Works

How the Second Lien Structure Works for Home Buyers

When you use an FHA DPA program in New Jersey, two loans close on the same day. The first is a standard FHA mortgage at 96.5% LTV. The second is the DPA lien covering the 3.5% minimum FHA down payment. Together they reach a CLTV of 100% on the 3.5% program, or up to 101.5% on the 5% program — meaning you can buy a home with no down payment out of pocket. Before closing, at least one borrower must complete a course from a HUD-approved New Jersey housing counseling agency. After closing, 36 consecutive on-time first mortgage payments qualify you to request the forgivable DPA second lien be discharged entirely. The repayable DPA adds a second monthly payment for 10 years at the Note Rate plus 2%, then drops off.

Bergen County and North Jersey: Why Higher Prices Mean More Assistance

The assistance is a percentage of the price, not a fixed dollar amount, so it grows with the house. On a higher Bergen, Passaic, Morris or Essex County price, 3.5% is a bigger check. There is no income cap, and both standard and high-balance FHA loan amounts are eligible, so your ceiling is the FHA loan limit for the county you buy in.


Who Qualifies in NJ

Qualifying for Home Buyer Assistance: Credit, Income & Property

Borrower Requirements (FHA DPA)
  • Minimum 580 FICO for AUS-approved FHA DPA loans (3.5% and 5%)
  • Minimum 600 FICO if using manual underwriting on the 3.5% DPA
  • First-time and repeat home buyers are both eligible on FHA DPA
  • U.S. Citizens and Permanent Resident Aliens
  • Non-occupant co-borrowers allowed on FHA DPA programs
  • No income cap on qualifying income for FHA DPA programs
  • At least one borrower must complete HUD-approved housing counseling
Choosing 3.5% or 5%
  • Pick 3.5% if you want the option of a forgivable second
  • Pick 3.5% if your file needs manual underwriting (600 minimum)
  • Pick 5% if you need more of your closing costs covered
  • The 5% program needs an automated underwriting approval
  • A repayable second, on either program, counts in your debt-to-income ratio
Eligible Property Types in NJ
  • Owner-occupied primary residence in New Jersey
  • Single family detached and attached homes (1 unit)
  • Two-unit (duplex) properties with FHA DPA program
  • Planned Unit Developments and townhouses
  • FHA-approved condominiums without active litigation
  • Manufactured homes: double-wide only
  • Investment properties and second homes are not eligible
Loan Structure & Terms
  • FHA first mortgage: 96.5% LTV, 30-year or 25-year fixed rate
  • Standard and high-balance NJ FHA loan limits both eligible
  • Forgivable DPA: no monthly payment; forgiven after 36 on-time payments
  • Repayable DPA: Note Rate + 2%, amortized over 10 years
  • 2-1 buydown allowed on 3.5% DPA (seller/builder paid only)

NJ Broker Advantage: The FHA DPA programs have no income cap and no first-time buyer requirement, so a good income or a past home purchase does not rule you out. We price the 3.5% and 5% options side by side, so you can see what each one costs before you pick.
Not sure whether 3.5% or 5% fits your purchase?
Find out what you qualify for

Before You Start

What Happens After You Apply

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    A few minutes online. No documents at this stage.

  2. A licensed loan officer calls you

    Someone on our team covering your state.

  3. We ask for documents and pull credit

    Only once you have decided to move forward.

  4. You get an approval to shop with

    Typically back within the hour.

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Frequently Asked Questions

Frequently Asked Questions: Down Payment Assistance New Jersey

What is the best down payment assistance program in New Jersey?
For many buyers, the 3.5% FHA DPA with the forgivable second is the place to start. It needs a 580 score, has no income cap, and you can ask for the second lien to be forgiven after 36 consecutive on-time payments. The 5% program puts more toward your costs, but you always pay it back, and it needs an automated underwriting approval. Mortgage-World.com (NMLS #1630225) will price both for you. Call 888.958.5382.
How much down payment assistance can I get in New Jersey?
The FHA DPA programs provide 3.5% or 5% of the purchase price, or of the appraised value if that is lower. On a $400,000 New Jersey home, that is $14,000 to $20,000. Because it is a percentage rather than a fixed sum, the amount rises with the price, which helps in Bergen County and the rest of North Jersey.
Do I have to be a first-time home buyer for NJ down payment assistance?
No. Both the 3.5% and 5% FHA DPA programs are open to first-time and repeat buyers who meet the credit and property guidelines. The home does have to be your primary residence.
What is the minimum credit score for down payment assistance in New Jersey?
The minimum is 580 on both FHA DPA programs when the loan gets an automated underwriting approval. If your file has to be manually underwritten, the 3.5% program needs a 600 score, and the 5% program cannot be manually underwritten at all. Call 888.958.5382 and we will tell you which applies to you.
Does New Jersey down payment assistance have to be repaid?
It depends on the program. The 3.5% forgivable second has no monthly payment, and you can ask for it to be forgiven after 36 consecutive on-time first mortgage payments. The repayable version is paid back over 10 years at the first mortgage rate plus 2%. The 5% program is always repayable, on those same terms. We will show you what payback looks like before you commit.
Is there an income limit for down payment assistance in New Jersey?
No. The FHA DPA programs through Mortgage-World.com (NMLS #1630225) carry no income cap. If you qualify for the FHA loan, your income will not rule you out of the assistance. Call 888.958.5382.
What happens to the assistance if I sell or refinance?
It depends on which version you have. A repayable second, on either program, is paid off from the sale or refinance proceeds like any second mortgage. The 3.5% forgivable second can be forgiven once you have made 36 consecutive on-time payments and asked for it. Sell or refinance before then and plan on paying it off at closing. If you think you might move within three years, talk that through with us before you choose a version.
Can I use assistance and a seller credit at the same time?
Usually yes, and they cover different things, which is why pairing them works well. The assistance goes toward your down payment; a seller credit goes toward closing costs and prepaid items like taxes and insurance. There are limits on how much a seller may contribute, and a credit cannot be turned into cash back at the table. Where buyers get caught out is agreeing the credit late — it needs to be in the contract, not a handshake after the appraisal.
Do I really have to do the homebuyer counseling?
Yes. At least one borrower has to complete a HUD-approved housing counseling course, and the certificate has to be in the file before closing. It is usually a few hours online. Start it early. A missing certificate is one of the most common reasons a file that was otherwise ready sits waiting a week, and booking the course the week you go under contract avoids it.
Will using down payment assistance make my offer weaker?
Some listing agents think so, and it is worth being ready for that rather than pretending otherwise. The honest answer is that a DPA file has one more moving part, and in a multiple-offer situation a seller may prefer the simpler one. What closes that gap is a proper pre-approval that already accounts for the assistance, so your offer arrives looking finished rather than conditional. We put that in writing for exactly this reason.

Related down payment pages: Down payment assistance overview · Connecticut down payment assistance · Florida down payment assistance.

Related Resources

Comparing Your Options?

New Jersey assistanceThe 3.5% and 5% FHA programsYou are hereFirst-time buyer helpHow assistance works generallyCompareNew Jersey FHAThe loan the assistance sits on top ofCompareNJ first-time buyerEverything else a first purchase needsCompare
Related Down Payment Assistance ProgramsNew Jersey FHANJ first-time buyerNJ conventionalPre-approvalFirst-time buyer help
Down Payment Assistance New Jersey — Mortgage-World.com, NMLS #1630225Mortgage-World.com
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Licensed in
NJ · CT · FL
Broker license
NMLS #1630225
Florida license
MLB 1987
Family owned since
2017
Office
Ridgefield, NJ

See what FHA assistance would put toward your New Jersey home

A licensed loan officer will look at your score, your price range and the county you are buying in, then tell you whether the 3.5% or 5% program fits and roughly what it would cover.

What You Need
✓580 minimum score on both FHA DPA programs
✓No income cap on the FHA DPA programs
✓No hard credit pull to check
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Down Payment Assistance New Jersey guide by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225

Written and reviewed by Chris Luis, Broker/Owner of Mortgage-World.com, NMLS #1630225. About the author

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