Down Payment Assistance
You probably need far less cash to buy a home than you think.
Down payment assistance helps cover your down payment and closing costs so you can buy sooner. In New Jersey, that can mean up to $22,000 in forgivable help through NJHMFA. In Pennsylvania, PHFA's K-FIT covers up to 5% of the purchase price. We're a state-approved lender for both — here's how it works, whether you pay it back, and how to qualify.
What is down payment assistance?
Down payment assistance (DPA) is money — usually from a state housing agency, and sometimes an employer or union — that helps cover the down payment and closing costs on a home purchase. It most often comes as a forgivable second mortgage: you make no monthly payments on it, and it's forgiven over time as long as you live in the home. Assistance is layered on top of a normal first mortgage like FHA, VA, USDA, or conventional.
The reason it matters: the single biggest thing standing between renters and homeownership usually isn't the monthly payment — it's the cash needed upfront. DPA is designed to remove exactly that barrier. In New Jersey and Pennsylvania, the programs are among the most generous in the country, and most first-time buyers are never told they exist.
The types of down payment assistance
Not all assistance works the same way. Knowing the four main structures helps you understand what you're actually getting — and whether you ever pay it back.
Forgivable second mortgage
The most common structure. You get a second loan for the down payment that requires $0 monthly payments and is forgiven a little each year you live in the home — so if you stay long enough, you never pay it back. NJHMFA works this way.
Deferred-payment loan
A second loan with no monthly payments that sits silently behind your mortgage. You repay it only when you sell, refinance, or pay off the first mortgage — not out of pocket each month.
Grant
Money toward your down payment or closing costs that never has to be repaid. True grants are less common and usually tied to a specific first mortgage or employer/union benefit.
Matched savings / conventional wrapper
Programs like Freddie Mac HFA Advantage let state agencies pair assistance with a conventional loan that carries reduced mortgage insurance, lowering your monthly payment on top of the help with cash to close.
Down payment assistance by state
We're an approved participating lender for both the New Jersey and Pennsylvania state programs. Pick your state for the full breakdown — programs, income limits, price caps, and who qualifies.
NJHMFA — up to $22,000 forgivable
A 30-year fixed mortgage paired with up to $15,000 in forgivable down payment assistance — plus $7,000 more for First-Generation buyers. No monthly payment on the assistance, and it's forgiven after five years in the home.
Full NJHMFA guidePHFA — up to 5% of the price
The Keystone Home Loan paired with K-FIT — forgivable assistance of up to 5% of the purchase price — and Keystone Advantage for extra closing-cost help. One of the most under-used first-time buyer programs in the country.
Full PHFA guide| New Jersey | Pennsylvania | |
|---|---|---|
| Program | NJHMFA First-Time Homebuyer | PHFA Keystone Home Loan |
| Assistance amount | Up to $22,000 forgivable ($15,000 + $7,000 First-Generation) | K-FIT: up to 5% of the purchase price, forgivable |
| Structure | Forgivable 5-year second, $0 monthly payment | Forgivable second (K-FIT) + closing-cost help (Advantage) |
| First mortgage | 30-year fixed (FHA/VA/USDA/Conventional) | 30-year fixed (FHA/VA/USDA/Conventional) |
| Who it's for | First-time buyers (no home owned in 3 years) | First-time buyers (and some repeat buyers in targeted areas) |
Other ways to lower your cash to close
Freddie Mac HFA Advantage
The conventional loan many state programs run on. It allows a low down payment with reduced mortgage insurance, which lowers your monthly payment compared to a standard conventional or FHA loan — so you save on cash to close and every month after.
Employer & union homebuyer programs
Some employers, and unions through programs like Union Plus, offer homebuyer benefits or assistance toward closing costs. If you're a member or your employer offers a housing benefit, it may stack with state assistance — we'll help you check.
Do you have to pay it back?
In most cases in New Jersey and Pennsylvania, no — not out of pocket. The main programs are forgivable: you make no monthly payment on the assistance, and it's forgiven over time as long as the home stays your primary residence. If you sell or refinance before the forgiveness period ends, the remaining balance is simply paid from your sale or refinance proceeds — never from your monthly budget. A smaller number of programs are true grants that are never repaid at all.
How to get down payment assistance
- 1
Check your eligibility
Down payment assistance is based on your income, the home's price, and the county — not just your credit. A quick conversation tells you which programs you qualify for before you shop.
- 2
Get pre-approved with an approved lender
You don't apply to the state directly. You apply through a participating, state-approved lender — the Brondt Cook Group is one — who layers the assistance onto your mortgage.
- 3
Complete homebuyer education
Most programs require a short HUD-approved homebuyer education course. Most buyers finish it online in an afternoon.
- 4
Shop with confidence and make your offer
With your pre-approval and assistance confirmed, you can make a strong offer knowing your down payment and much of your closing costs are covered.
- 5
Close and let the assistance do its job
The assistance funds are applied at closing. On forgivable programs, you make no payment on it — and if you stay in the home long enough, it's forgiven entirely.
Down payment assistance FAQ
How much down payment assistance can I get in New Jersey or Pennsylvania?
In New Jersey, NJHMFA offers up to $22,000 in forgivable down payment assistance — up to $15,000 standard, plus $7,000 more for First-Generation buyers. In Pennsylvania, PHFA's K-FIT program provides up to 5% of the purchase price in forgivable assistance. Amounts are set by each state agency and can change, so we confirm current figures on your call.
Do you have to pay back down payment assistance?
It depends on the program. Most assistance in NJ and PA is a forgivable second mortgage: you make no monthly payments on it, and it's forgiven over time as long as you live in the home as your primary residence. If you sell or refinance early, you repay the remaining balance from the proceeds — never out of pocket. Some programs are true grants that are never repaid.
Do I have to be a first-time buyer to get down payment assistance?
Usually, yes — but 'first-time buyer' typically means you haven't owned a primary residence in the last three years, so many people qualify again. Some programs also make exceptions for buyers in targeted areas, veterans, and certain professions.
Can I use down payment assistance with an FHA or VA loan?
Yes. Down payment assistance layers on top of a standard first mortgage — FHA, VA, USDA, or conventional. The assistance covers your down payment and often part of your closing costs, while the first mortgage works exactly as it normally would.
What credit score do I need for down payment assistance?
Most programs follow the credit guidelines of the underlying loan — often a 620 minimum, sometimes lower with FHA. Down payment assistance is driven more by your income and the home's price than by a high credit score, which is why it helps so many buyers who assumed they couldn't qualify.
Do I really not need 20% down?
Correct. The 20%-down idea is one of the most expensive myths in home buying. FHA loans go as low as 3.5% down, conventional as low as 3%, and VA and USDA can be 0% down — and down payment assistance can cover that down payment plus much of your closing costs. Many buyers get into a home for far less cash than they expected.
Do I have to work with the state agency or come to your office?
No. You work with us — a state-approved participating lender — and we handle the program details with the agency. The entire process runs by phone, email, and secure online tools, so you can do it from anywhere in New Jersey or Pennsylvania.
Find out how much assistance you qualify for.
It takes one short conversation to see which New Jersey or Pennsylvania programs fit your income, your price range, and your goals — with real numbers and zero pressure.
Program figures (including NJHMFA and PHFA assistance amounts) are set by the state agencies and are subject to change and eligibility requirements. You apply through an approved participating lender. This is not a commitment to lend. Brondt Cook Group operates through Acre Mortgage and Financial, Inc., NMLS #13988. Equal Housing Lender.