First-Time Buyer Grants and Loans in Bergen and Passaic Counties, NJ

By Deborah Rivera, Broker & Realtor

First-time buyers in Bergen and Passaic counties can access up to $15,000 in state-level down payment assistance alone, and Bergen County residents may qualify for an additional $65,000 through a dedicated county program. Whether you're targeting a mid-range home in Passaic County or working toward an entry point in Bergen's higher-priced market, layering the right programs can meaningfully reduce what you need to bring to closing.

This guide breaks down the major grant and loan programs available to first-time buyers in these two counties, explains what qualifies you, and shows how the programs can stack together.

What "First-Time Homebuyer" Actually Means in New Jersey

In New Jersey, a first-time homebuyer is defined as someone who has not owned a primary residence in the past three years, and that definition applies across every program covered here. This means people who owned a home several years ago and have since been renting can still qualify.

Two exceptions exist under the NJHMFA umbrella: qualified veterans and buyers purchasing in a designated Urban Target Area are not subject to the three-year rule, provided they don't hold another primary residence at closing. The NJHMFA website includes a site evaluator tool that lets you check whether a specific address falls within a designated area before you apply.

NJHMFA Programs Available in Both Counties

NJHMFA First-Time Homebuyer Mortgage

The New Jersey Housing and Mortgage Finance Agency (NJHMFA) provides first-time buyers with a 30-year, fixed-rate government-backed mortgage (FHA, VA, or USDA) at competitive rates, originated through the agency's network of approved lenders. The loan is open to single-family homes, condos, townhomes, manufactured homes, and multi-family properties of up to four units, as long as the buyer occupies one unit as a primary residence.

Minimum requirements include a FICO score of at least 620, at least two open credit trade lines, and an income and purchase price within NJHMFA's county-specific limits. Bergen and Passaic counties, both higher-cost areas, generally carry more generous limits than other parts of the state. An NJHMFA-participating lender can pull the exact figures for your household size and target property.

NJHMFA Down Payment Assistance Program (DPA)

The DPA is the most widely used first-time homebuyer grant in New Jersey. Both Bergen and Passaic counties fall in the program's higher assistance tier, with qualified first-time buyers eligible for up to $15,000.

The money comes as a 0% interest, five-year forgivable second loan with no monthly payments, and the balance is fully forgiven if you stay in the home for five consecutive years. If you sell, refinance, or move out before the five-year mark, the unforgiven portion becomes due.

The DPA must be paired with an NJHMFA first mortgage. You'll also need to complete a HUD-approved credit counseling course before your lender submits the application. Build in at least ten days before your closing date; NJHMFA approval typically runs about five business days once the file is submitted.

NJHMFA First-Generation Down Payment Assistance

If neither of your parents or legal guardians currently own residential real property anywhere in the United States, or if you were ever placed in foster care in New Jersey, you may qualify for an additional $7,000 on top of the standard DPA. That brings total possible assistance in Bergen and Passaic counties to up to $22,000.

This add-on uses the same five-year forgivable structure as the base DPA and must be combined with an NJHMFA first mortgage. It cannot be used as a standalone benefit.

HFA Advantage Mortgage

Buyers who prefer a conventional loan can use NJHMFA's HFA Advantage Mortgage, a 30-year, fixed-rate Freddie Mac product with reduced mortgage insurance and financing up to 97% of the purchase price. Pairing it with the DPA requires first-time buyer status; repeat buyers without DPA are eligible subject to county income limits.

Police and Firefighter Retirement System Mortgage

Active New Jersey police officers and firefighters with at least one year of PFRS service can access a dedicated 30-year, fixed-rate mortgage. The maximum loan amount tracks the current Fannie Mae conforming loan limit, which rose to $832,750 for most of the country in 2026, with higher figures in designated high-cost areas, so it's worth confirming the exact current cap with a participating lender before you assume a specific number. The program is open to first-time and repeat buyers alike, though some funding is reserved for first-timers. A minimum 15% down payment is required, and associated fees, including a lender fee, an administrative fee, and a monthly servicing fee, apply. Borrowers must remain in the home for the full loan term.

Bergen County First-Time Buyer Grants: The American Dream Program

Bergen County first-time buyers have access to one of the most substantial county-level down payment assistance programs in New Jersey. Bergen County's American Dream Program, administered by the Bergen County Division of Community Development, provides:

• Up to $65,000 as a 0% interest deferred second mortgage (HOME Program funds), repaid only when you sell, transfer title, or stop occupying the home as your primary residence
• Up to $10,000 in matching down payment assistance (CDBG funds), forgiven at one-tenth per year over ten years, fully converted to a grant after a decade

To qualify, you must reside or work full-time in Bergen County, not have owned a home in the past three years, and meet household income limits set by the HOME Income Guidelines for low-to-moderate income households. The property must be a single-family home or condominium within Bergen County; multi-family properties and co-ops are not eligible, and the purchase price cannot exceed 95% of the county's median sales price.

Applicants complete required housing counseling education before being matched with an American Dream-approved conventional lender. The program requires all reasonable available assets to be applied toward the down payment first; a reserve equal to three months of mortgage payments is permitted.

For Bergen County buyers who also qualify for NJHMFA's DPA and First-Generation programs, stacking the state and county layers is possible and can significantly reduce out-of-pocket costs at closing. Confirm current funding availability and income limits directly with the Bergen County Division of Community Development before entering a purchase contract.

Passaic County First-Time Buyer Grants and City-Level Options

Passaic County buyers qualify for the $15,000 NJHMFA DPA tier, up to $22,000 with the First-Generation add-on.

The City of Passaic also operates a dedicated First-Time Homebuyers Program that provides a forgivable deferred second mortgage for down payment and closing costs, funded through the federal HOME Investment Partnerships Program. The program targets households earning at or below 80% of the Area Median Income, and owner-occupancy requirements vary based on the level of assistance received. Buyers interested in city-level assistance should contact the City of Passaic directly, as funding availability and current income limits are subject to change. If you're weighing a specific town in Passaic County against a Bergen County option, a look at the entry-level towns in Passaic and Morris counties is a useful next stop.

Federal Loan Programs That Work Alongside NJ Grants

Four federal loan types work directly alongside NJHMFA programs: FHA, VA, USDA, and the HFA Advantage conventional loan, each with different down payment minimums and eligibility rules.

Running the numbers through a mortgage calculator is a useful way to compare how different loan types and assistance amounts affect your monthly payment before narrowing down your options.

How to Stack First-Time Buyer Grants and Loans: A Practical Overview

Combining programs is one of the most effective ways to reduce out-of-pocket costs at closing. A general approach for buyers in Bergen or Passaic counties might look like:

1. Secure an NJHMFA first mortgage through a participating lender
2. Add the NJHMFA DPA ($15,000) as a forgivable second mortgage
3. If eligible, layer on the First-Generation DPA ($7,000) for a combined $22,000 in down payment assistance
4. Bergen County buyers: apply separately for the American Dream Program through the county

Each program has its own application, timeline, and documentation requirements. Some require a housing counseling certificate before lender submission; others need to be confirmed with the administering agency before you go under contract. Working with an NJHMFA-participating lender early, ideally before you've identified a specific property, helps make sure approvals are in place when you need them.

FAQ

• How do I know if a property qualifies for NJHMFA first-time buyer programs? The property must serve as your primary residence in Bergen or Passaic County. Eligible types include single-family homes, condos, townhomes, manufactured homes permanently affixed to land you own, and two to four unit multi-family properties where you occupy one unit. The purchase price must fall within NJHMFA's county-specific limits.
• Can I qualify for down payment assistance if I owned a home several years ago? Yes, as long as you haven't owned a primary residence in the past three years. The three-year window is measured from your previous closing date. Veterans and buyers purchasing in designated Urban Target Areas are exempt from this requirement, provided they hold no other primary residence at closing.
• When should I start the NJHMFA application process? Earlier than you might expect. HUD-approved credit counseling must be completed before your lender can submit the file, and the NJHMFA review itself runs approximately five business days. Starting the process at least ten to fifteen days before your target closing date is strongly recommended, and beginning before you go under contract is even better.
• What credit score is required for NJHMFA grants and loan programs? A minimum FICO score of 620 is required for both the First-Time Homebuyer Mortgage and the DPA. You'll also need at least two open credit trade lines. If your score is currently below 620, a HUD-approved housing counselor can help you identify targeted steps to improve it before you apply.
• Does Bergen County's American Dream Program require an NJHMFA mortgage? No. The American Dream Program operates through Bergen County's own approved conventional lenders and does not require an NJHMFA first mortgage as a condition. Qualifying buyers can potentially combine county and state programs if both are compatible, so confirm with the program coordinator and your lender before assuming both can apply to the same transaction.
• Are there first-time buyer grants for buyers in Clifton, Nutley, or Paterson? Clifton, Nutley, and Paterson all fall within the $15,000 NJHMFA DPA tier as Passaic County communities. Buyers purchasing within the City of Passaic's boundaries may additionally qualify for the city's HOME-funded program. Contact the relevant municipal housing division directly for any additional local programs.