More than 7,400 N.J. residents gain homes through down payment assistance programs, report finds
NEW JERSEY — More than 7,400 low- and moderate-income residents in New Jersey have become homeowners over the past two years through state-supported programs aimed at increasing affordability, according to a new report from the New Jersey Housing and Mortgage Finance Agency (NJHMFA).
The report, submitted to the governor and legislature before the June 29 statutory deadline, highlights the impact of the Down Payment Assistance (DPA) and First-Generation Homebuyer Program, which provide below-market mortgages and financial assistance to eligible homebuyers. Nearly half of those assisted were the first in their families to own a home.
“These programs are helping New Jersey families build equity and lower long-term housing costs,” said NJHMFA Executive Director Melanie R. Walter. “We’re proud of the tremendous success we’ve realized over the past few years, making it possible for thousands of families to become homeowners.”
The agency reported that approximately 85% of participants earned below the state’s median income. On average, recipients of down payment assistance saved $142 per month on housing costs, while first-generation homebuyers saved about $188 per month compared to other mortgage options. Over the course of a 30-year mortgage, that translates to $51,000 to $67,000 in savings per household.
The report estimates that the programs will result in $270 million in reduced payments over the life of NJHMFA’s $74 million investment, equating to a 3.6-to-1 return. In addition to monthly savings, the agency said the programs have generated more than $2 billion in home equity for participating families since the DPA program began in 2017.
Initially funded with federal dollars, the programs were expanded and codified through state legislation in 2023. New Jersey’s fiscal year 2026 budget includes a renewed $40 million investment to extend the program’s reach to thousands of additional families.
“Our administration has prioritized expanding affordability and reducing obstacles to ensure more New Jerseyans can become homeowners,” said Gov. Phil Murphy in a statement. “We are proud to see this program making an impact across the Garden State.”
Senator Troy Singleton, one of the bill’s sponsors, praised the program’s ability to promote long-term financial stability and generational wealth. “These programs will continue to level the playing field for low- and moderate-income families, allowing thousands more to achieve the American Dream of homeownership,” he said.
The legislation was co-sponsored by Senate Majority Leader Lou Greenwald, who noted his own experience as a first-time homebuyer. “Over the past two years, more than 7,400 people have benefited from these programs. We’re proud of the progress and committed to expanding these efforts,” he said.
The NJHMFA programs remain a core component of the state’s efforts to close the homeownership gap and foster long-term economic opportunity for working families.
