NJHMFA Program Eligibility Overview
Welcome to the overview of eligibility criteria for the New Jersey Housing and Mortgage Finance Agency (NJHMFA) programs. Whether you’re a first-time homebuyer, a public servant, or seeking specialized financial assistance, NJHMFA offers a range of programs designed to make homeownership accessible and affordable. Below is a breakdown of the eligibility requirements for our key programs:
Have questions? Please call 866-761-7979 today and speak with an NJHMFA expert.
General Eligibility Criteria for Most NJHMFA Programs
- First-Time Homebuyer Status: Typically, you must be a first-time homebuyer, which means you haven’t owned a home in the past three years. Exceptions are often made for qualified veterans and buyers in Urban Target Areas.
- Income Limits: Most programs have income limits, which vary by county and family size.
- Credit Score: A minimum credit score is usually required, which can vary by program.
- Occupancy: The purchased property must be your primary residence.
- Location: The property must be located in New Jersey.
NJHMFA Credit History Requirements
To qualify for New Jersey Housing and Mortgage Finance Agency (NJHMFA) loan programs, you’ll need to demonstrate responsible credit management. Here’s what NJHMFA looks for:
Basic Requirement:
- Minimum credit score of 620
- At least 2 credit accounts (tradelines) with 12+ months of history
- What is a tradeline? A tradeline is any credit account that appears on your credit report, such as credit cards, auto loans, mortgages, or student loans.
- These accounts must be active or closed no more than 6 months ago
- If you have only 1 credit account, verified rental payment history can count as your second tradeline
- This requirement applies to every borrower on the loan application
Important Notes:
- The following don’t count toward the NJHMFA requirement:
- Deferred student loans with no payment history
- Accounts where you’re only an authorized user
- Self-reported bills (like phone or cable)
- Alternative credit (except for verified rent payments)
- The 12 months of payment history must appear on your credit report before your application can be submitted to NJHMFA for approval
- You can request a new credit report or supplement if needed to show this history
Specific Program Eligibility
Homeward Bound Program & HFA Advantage Mortgage Program
- Debt-to-Income Ratio: Must meet specific debt-to-income ratio requirements.
- Property Types: Eligible properties include single-family homes, townhouses, condos, and more.
Down Payment Assistance Program
- Additional Requirements: Must be paired with a qualifying NJHMFA first mortgage product. The assistance is a second mortgage that can be forgiven if certain conditions are met.
Police and Firemen’s Retirement System Mortgage Program
- Eligible Borrowers: Active members of the New Jersey Police and Firefighter Retirement System with at least one year of creditable service.
- Loan-to-Value (LTV): Maximum LTV ratios apply.
First Generation Homebuyer Program
- First-Generation Definition: Either individuals whose parents have never owned a home or those who have been in foster care in New Jersey.
- Combined Assistance: Can be combined with the Down Payment Assistance Program for up to $22,000 in total assistance.
