How to buy a home in New Jersey

If you’re thinking of buying a home in New Jersey, this state’s housing market offers buyers a wide range of options from suburban cottages to beachfront homes. To successfully close on your dream home, you’ll still need to start with fundamentals like saving for a down payment, making sure your credit is in good shape, and getting preapproved for a loan so you understand what you can afford.

Whether you’re beginning to look for a home or in the middle of buying one, this guide will break down what you need to know about buying a home in New Jersey.

Affording a home in New Jersey

First things first, before you start searching for the perfect home, it’s important to figure out how much you can reasonably afford. After all, why spend time looking at homes that are outside your budget?

Many factors can affect how much home you can afford, including things like your:

• Current debts
• Credit score and history
• Income
• Property taxes
• Home insurance
• Savings and down payment
• Market conditions and interest rates
• Homeowners association fees
• Private mortgage insurance
• Maintenance and repair costs

All of these factors play a big role in how much a lender may be willing to loan you, and what you feel comfortable paying.

If you’re not sure where to start, don’t worry. Using a tool like the Rocket Mortgage^® Home Affordability Calculator gives you a quick way to estimate what might fit within your budget based on your income, expenses, and loan terms. This way, you can start house hunting at a price point that fits your budget. You can find current mortgage rates for New Jersey here. 

Median home price in New Jersey

The median home sales price in New Jersey was about $559,300 in November 2025, which is higher than the national median of $433,000.

Knowing the median home price in the area you want to live can give you a better idea of what most people are paying for homes there. It also helps prevent high-priced homes from skewing the numbers completely.

Generally speaking, homes in New Jersey tend to cost more than in many other parts of the country. So, understanding how much you can afford before you start shopping can save you time and stress.

Finding a mortgage broker in New Jersey

After you decide on a price range that you're comfortable with, the next step is to get preapproved for a mortgage. Even though you may feel comfortable with a price point, the preapproval with a lender can show you what a lender is willing to let you borrow and what you can realistically afford.

During the preapproval process, lenders review your financial details, credit history, income, and debts to decide what amount you qualify for. Once preapproved, they’ll give you a preapproval letter that shows sellers you’re a serious buyer who’s ready to move forward.

Working with a mortgage broker can make this process even smoother. A mortgage broker can:

• Match you with a suitable loan for your situation
• Help you through the mortgage application and approval process
• Keep things on track so your funds reach the escrow company on time

If you’re ready to take this step, you can easily find a trusted mortgage broker with Rocket Mortgage® to help you explore your options and move closer to owning your New Jersey home.

Finding a real estate agent in New Jersey

When it comes to buying a home, there are a lot of moving parts. If you’re not familiar with how real estate works, it can feel like a lot to manage on your own. That’s where a licensed real estate agent can step in and take some of the pressure off.

A good realtor understands the ins and outs of the market and can guide you through every step of the process. From finding the right home to signing the final papers, working with a real estate professional can save you time, money, and stress while helping you make confident decisions.

Here are a few key benefits of working with a licensed real estate agent:

• Finding homes that fit your needs through the Multiple Listing Service (MLS)
• Scheduling and touring properties so you can see your options in person
• Preparing and submitting offers based on similar home prices (called “comps”)
• Negotiating on your behalf to help you get the best price and possible concessions
• Guiding you through closing, making sure every detail is handled smoothly 

If you’re ready to find a trusted agent in New Jersey, here are a few places to start:

• Ask friends or family for referrals
• Use an online real estate platform like Redfin.com to search for licensed realtors in your ZIP code
• Look for realtors who have the most listings, or a good number of listings, in the area where you want to move 

Before you sign a contract with any realtor, make sure their license is up to date. You can verify this by visiting the State of New Jersey Department of Banking and Insurance website.

Home buying assistance programs in New Jersey

One of the biggest challenges for many homebuyers is saving up for a down payment and paying for closing costs. If we use New Jersey’s median home price ($559,000) as a reference and assume a 20% down payment, that would come to about $111,000, which can be a big undertaking for many homebuyers.

Fortunately, New Jersey has several homebuying assistance programs that can help make homeownership more affordable for first-time buyers. From down payment and closing cost assistance to lower interest rates, each program offers different benefits. But since each program sets its own eligibility requirements, it's best to explore all your options to see which one makes the most sense for you.

To get you started, here are some examples of programs available in New Jersey.

NJHMFA Statewide Down Payment Assistance Program

If you need help saving for a down payment, the New Jersey Housing and Mortgage Finance Agency (NJHMFA) Down Payment Assistance program gives eligible buyers up to $15,000 to help with these costs. Simply put, the money comes as a five-year, interest-free loan that you don’t have to pay back if you stay in your home for at least five years.

To qualify, you must:

• Be a first-time homebuyer (you haven’t owned a home in the past three years)
• Plan to buy a home in New Jersey to use as your full-time residence.
• Meet the NJHMFA's income and home purchase price limits.
• Use an NJHMFA first mortgage loan to finance your home, which is a 30-year fixed-rate government-insured loan (FHA, VA, or USDA).

You can learn more about this program by visiting the NJHMFA website.

NJHMFA First Generation Homebuyer Program

Another program that can help offset down payment and closing costs is the First-Generation Down Payment Assistance Program. This program is designed for first-time homebuyers who are also first-generation buyers. This means your parents or guardians have never owned a home, or you’ve previously been placed in foster care in New Jersey.

With this program, eligible buyers can receive $7,000 in down payment and closing cost assistance, which can be combined with the NJHMFA Statewide Down Payment Assistance Program for a total of $17,000 to $22,000 in support.

This assistance also comes in the form of a five-year, interest-free, forgivable loan with no monthly payments. If you stay in your home for at least five years, you don’t have to pay it back.

To qualify, you must:

• Be a first-time and first-generation homebuyer.
• Plan to buy a home in New Jersey and use it as your full-time residence.
• Meet NJHMFA income and home purchase price limits.
• Use an NJHMFA first mortgage loan to finance your home purchase. 

NJCC Down Payment Assistance

New Jersey Community Capital's Address Yourself™ Program is designed to help low- to moderate-income families and individuals become homeowners. This program offers more than just financial assistance; it also gives buyers access to resources like pre-purchase housing counseling, ongoing support, and connections to real estate professionals.

When you’re ready to buy a house in New Jersey, you can apply for down payment assistance ranging from $5,000 to $30,000.

Here’s what you’ll need to qualify:

• Be enrolled in the Address Yourself Homeownership Program
• Have a mortgage preapproval from one of the program’s approved lenders
• Be under contract to buy a home and have a signed purchase agreement

Golden Neighborhood Homeownership Program

The Golden Neighborhood Homeownership Program (GNHP) is geared toward New Jersey families earning between 60% and 80% of the area median income (AMI). Through this program, eligible buyers can get financial help and education to prepare for homeownership.

If you qualify, you can receive up to 10% of the home’s purchase price for a down payment, plus up to $10,000 for closing costs, but usually no more than $150,000 of assistance, depending on your family size, household income, and AMI percentage.

Here are the eligibility requirements:

• Be a first-time homebuyer (you haven’t owned a home in the past three years)
• Have a minimum credit score of 660
• Complete GNHP pre-purchase training
• Receive a Certificate of Eligibility from the City of Jersey City before signing a purchase contract
• Buy a home that meets local housing and lead-based paint standards, which requires an inspection
• Plan to live in the home for at least 10 years

Home buying process in New Jersey

Although buying a New Jersey home can look a little different for everyone, the process usually follows the same basic steps. Here’s a breakdown of what usually happens along the way.

• Step 1: Know where your finances stand: Take some time to review your finances and look at things like your credit, debt, and savings. This helps you see where you stand and if you're financially in a good spot to buy a home.
• Step 2: Apply for preapproval: Once you feel financially ready, you'll want to apply for a mortgage preapproval to find out how much you can borrow. This way, you’ll have a clear idea of the price range of homes to start your search. Plus, having a preapproval letter is a good way to show sellers you’re serious about purchasing their home when you're ready to make an offer.
• Step 3: Find a real estate agent: Partnering with a knowledgeable realtor can make your buying experience a lot easier to navigate. With their expertise and skill set, they can guide you through each step, help you avoid common mistakes, and ultimately help you find a New Jersey home that fits your needs and budget.
• Step 4: Start house hunting: Your realtor can help you find homes in your price range and preferred area by using tools like the Multiple Listing Service (MLS). But you don’t have to wait for them to send you all the listings. You can do your own search by visiting sites like Realtor.com and Rocket Homes to find homes that you’re interested in.
• Step 5: Make an offer: After finding a home that seems to check all the boxes, your agent will help you write and submit an offer to the seller. Your offer will include details like your proposed sale price and any terms you’d like to add to the sale agreement, such as closing dates or contingencies.
• Step 6: Get a home inspection: If your offer is accepted, it’s time to hire a professional inspector to evaluate the condition of the home and spot any issues that could turn into big problems later on. The inspector goes through every inch of the inside and outside of the home to look for things that may be cause for concern, like leaky pipes, cracks in the foundation, or anything that needs to be repaired.
• Step 7: Negotiate seller concessions (if needed): If you’re happy with how the inspection turned out, you can move on to the next step and finalize the sale agreement. But if the inspection came back with some things that need attention, you can ask the seller to make fixes or lower the sale price to cover the cost. Remember that negotiating repairs is always optional. Whether or not you choose to add it to the agreement really depends on what was found during the inspection.
• Step 8: Finalize the deal: When you and the seller come to a final agreement on the sale price and any repairs that need to be done, your lender will finalize your loan and prepare the last paperwork for closing.
• Step 9: Close on your home: Closing is basically the finish line to buying a home. This is when you’ll sign the final documents, pay any remaining costs, and finally get the keys to your new home.

Bottom line: Use home buyer assistance programs to get a house in New Jersey 

While average New Jersey home prices are higher than in other parts of the country, owning a home in the Garden State is still possible. When you know what you can reasonably afford and take time to research all the financial assistance programs available in New Jersey, buying a home can feel a lot more manageable. So, whether you’re getting ready to buy your first home or looking for a fresh start in a new area, having the right resources can make all the difference between dreaming of homeownership and making it a reality.

When you’re ready to take the next step, you can start your application with Rocket Mortgage^®.