How to Buy Your First Home With Confidence

First Time Home Buyer Grants 

With help of the first time home buyer grants, not only can the first time home buyers improve their quality of living but can also build considerable wealth for the future. Remember, a first time home buyer is defined as a family or individual who has never owned or had ownership intent of a home within the past three years. If you qualify to this, then you can go ahead and take advantage of the first time home buyer grants.

Even though down payment assistance programs are available for both first time and repeat buyers, only first time home buyers have access to the Mortgage Credit Certificate (MCC) Program. This program makes home buying much more affordable for the first time home buyers.

MCC Qualification Eligibility

If you are willing to buy your first home and take advantage of the MCC program, you must qualify to the income and home purchase limits as stated. The eligibility criteria are as follows:

• Available for first time home buyers only, who have not owned a home in the last three years
• Home buyers must use the property as their primary residence
• Home buyers education is required to qualify this program – the home buyer must complete a home buyer education course prior to the loan closing. You must provide a certificate showing the completion of an approved home buyer education course for qualifying.

Down Payment Assistance Program

The Home Plus home loan program is very popular because each home buyer family will receive a non‐repayable housing grant that can be used for down payment and/or closing costs equal to as much as 5% of the mortgage loan.

Program Highlights:

• No first time home buyer requirement for most programs.
• No requirement to pay back the housing grant and it is not a 2nd mortgage.
• Qualified members of the U.S. military (active and Veterans) are eligible for an additional 1% of down payment assistance.
• The money is available.

How to Qualify:

• Maximum purchase price of $371,936. If using an FHA loan with Home Plus, the maximum loan amount depends on the FHA loan limits in your county.
• Maximum income of $92,984.
• Maximum debt-to-income of 45%
• See various loan program requirements below.

Home Plus Conventional

Conventional loans with down payment assistance can be a great option because unlike some other loan programs, conventional loans allow you to remove the private mortgage insurance (typically on loans with less than 20% down) down the road.

This program is derived from the Fannie Mae HomeReady program and is one of the conventional Home Plus loan programs offered.

Program Highlights:

• Down payment assistance options at 3%, 4% and 5%. You can choose what is best for you based on your loan scenario.
• Minimum FICO score is 640 with 5% down
• Minimum FICO score is 680 with 3% down
• Maximum purchase price of $371,936
• Maximum debt-to-income of 45%
• Maximum income of $92,984

This program is derived from the Freddie Mac Home Possible Advantage program and is the other conventional Home Plus loan programs offered.

Program Highlights:

• Down payment assistance grant of 4%
• Minimum FICO score is 640 with 5% down
• Minimum FICO score is 680 with 3% down
• Maximum purchase price of $371,936
• Maximum debt-to-income of 45%
• Maximum income of $92,984

Government loan programs with down payment assistance can be a great option because they usually have easier qualifying requirements. The three common government loan programs are FHA, USDA and VA.

VA and USDA loans are two popular government loan programs that offer 100% financing. The grant money from the Home Plus program is instead used to cover closing costs. As such, there is no down payment required. They are a great  zero down loan programs. Home Plus VA and USDA Loan Programs are offered.

Program Highlights:

• Down payment assistance offered up to 2%.
• Minimum FICO score is 640.
• Maximum purchase price of $371,936.
• Maximum debt-to-income of 45%
• Maximum income of $92,984

FHA loans with down payment assistance in have been popular for the past few years because they had lower minimum credit score requirements and were easier to qualify for than conventional mortgages. They still have many advantages that make them attractive to first time homebuyers. The Home Plus FHA loan program is offered anywhere.

Program Highlights:

• Down payment assistance options of 3% and 4%. You can choose what is best for you based on your loan scenario.
• Minimum FICO score is 660.
• Maximum purchase price of $371,936. If using an FHA loan with Home Plus, the maximum loan amount depends on the FHA loan limits in your county.
• Maximum debt-to-income of 45%
• Maximum income of $92,984

1. First-Time Homebuyer Mortgage Program

• Offers 30‑year fixed-rate government-insured loans (FHA, VA, USDA) with competitive rates.
   
• Must be a first-time buyer (haven’t owned a home in past 3 years).
   
• Can be paired with NJHMFA’s Down Payment Assistance (DPA) program. Wikipedia+15Bankrate+15The Mortgage Reports+15Wikipedia+5The Mortgage Reports+5SoFi+5
   

2. Down Payment Assistance (DPA) Program

• Provides up to $15,000 for down payment and/or closing costs.
   
• Structured as an interest-free, forgivable second mortgage if you occupy the home as your principal residence for 5 years. Wikipedia+5NJ.gov+5NJ.gov+5
   

3. First-Generation Down Payment Assistance Program

• Eligible first-time buyers whose parents/guardians have never owned a home (or those previously in NJ foster care) may receive an additional $7,000.
   
• Combined with DPA, total assistance can reach $17,000–$22,000, depending on county limits. FHA+5NJ.gov+5Wikipedia+5
   

4. HFA Advantage Mortgage Program

• Offers a 30‑year fixed-rate conventional loan with low down payment requirements, affordable mortgage insurance, and can also be paired with the DPA. Bankrate+4NJ.gov+41stcolonial.com+4
   

5. Homeward Bound Program

• Similar to First-Time Homebuyer Mortgage, but with higher income limits, making it accessible to moderate-income households. Can be paired with DPA. The Mortgage Reports+1
   

6. Police & Firemen’s Retirement System Mortgage Program

• Available to NJ police officers and firefighters with ≥1 year of service.
   
• Offers a 30‑year fixed-rate mortgage (loan limits up to ~$806,500). First-time buyer restrictions may be waived. FHA+12The Mortgage Reports+12Bankrate+12
   

Camden County

• Offers up to $25,000 in forgivable aid for eligible low–moderate income, first-time buyers—starting as 0% loans with forgiveness tiers: under $15k forgiven in 5 years; $15k–$25k forgiven in 10 years. The Mortgage Reports
   

City of Trenton

• Through HUD’s CDBG, the First-Time Homebuyer Program provides $1,000–$15,000 in 0% interest assistance for down payment and/or closing costs.
   
• Forgiven after a 5-year occupancy period. Income eligibility capped at ~80% of AMI. Trenton NJ
   

1. Determine eligibility—especially your income level, first-time buyer status, and county purchase price limits.
    
2. Choose a program—statewide (through NJHMFA) or check local programs in your city or county.
    
3. Contact a participating lender—NJHMFA programs require using an approved lender partner.
    
4. Check deadlines and funding availability, particularly for local programs with limited grants.
    

Here’s a detailed look at first-time homebuyer assistance in Monmouth County, New Jersey, including both county-level programs and how they can stack with statewide NJHMFA benefits:

Monmouth County offers a deferred-payment, interest-free second mortgage of up to $10,000, designed to assist with down payment and/or closing costs for eligible first-time buyers. Key eligibility requirements include:

• Residency in Monmouth County for at least 1 year before applying. Monmouth Habitat+15Visit Monmouth+15Defalco Realty+15Defalco Realty+2FHA+2
   
• Completion of a pre‑purchase housing counseling course, and submission of the certificate with your application. Visit Monmouth+2smt.greenwaymortgage.com+2
   
• First-time buyer status, defined broadly (e.g., no homeownership in the last 3 years, single parents, displaced homemakers may qualify). NJ 2-1-1 Partnership+11smt.greenwaymortgage.com+11NJ.gov+11
   
• The property must be your principal residence, located in eligible areas of Monmouth County, and within purchase price limits:
   
  • 1-family/condo: up to $337,000
     
  • 2‑family: up to $432,000
     
  • 3‑family: up to $532,000
     
  • 4‑family: up to $648,000 NJ.gov+6smt.greenwaymortgage.com+6greenwaymortgage.com+6
     

You can combine the Monmouth County program with these NJHMFA statewide offerings:

• Offered as a forgivable, interest-free second mortgage when paired with a 30-year first mortgage (FHA, VA, USDA, or conventional via HFA Advantage).
   
• Forgiven after 5 years of continuous residence; no payments needed.
   
• Monmouth County qualifies for the full $15,000 limit. Visit Monmouth+15NJ.gov+15Advisors Mortgage Group+15
   

• Available if you're a first-generation homebuyer (your parents/guardians have never owned real estate, or you're a former foster youth).
   
• Structured similarly—interest-free, forgivable after 5 years, on top of the standard DPA.
   
• Together with DPA, this could total $22,000. Wikipedia+3NJ.gov+3Defalco Realty+3Defalco Realty+2NJ.gov+2
   

ProgramAmountTypeMonmouth County FTHB ProgramUp to $10,000Deferred, 0% second mortgageNJHMFA Down Payment AssistanceUp to $15,000Forgivable 5-year second mortgageNJHMFA First-Generation Add-onUp to $7,000Forgivable 5-year second mortgage (if eligible)Potential Total AssistanceUp to $32,000Stacked deferred/forgivable loans  

1. Complete HUD-approved homebuyer counseling—required for both county and state programs.
    
2. Contact Monmouth County’s Office of Community Development (via their Planning Division) to begin your local application. Monmouth County+1NJ 2-1-1 Partnership+1FHATapinto+9Visit Monmouth+9Wikipedia+9NJ.gov+2Wikipedia+2Defalco Realty+1Wikipedia+2Advisors Mortgage Group+2Advisors Mortgage Group+2NJ.gov+2
    
3. Get pre-approved with an NJHMFA participating lender for your first mortgage—through FHA/VA/USDA or the HFA Advantage Program.
    
4. Apply for NJHMFA DPA, and determine if you also qualify as a first-generation buyer to get the extra $7,000.
    

Bottom line: If you're purchasing in Monmouth County and meet first-time (and possibly first-generation) criteria, you could unlock significant financial support—potentially totaling up to $32,000 in combined aid to help overcome barriers like down payment and closing cost hurdles.

Let me know if you'd like help locating approved lenders, getting counseling, or walking through the income/property limits specific to your situation!