Homebuyer Programs in Paterson, NJ (2026)
Paterson is New Jersey's third-largest city, located in Passaic County about 20 miles west of Manhattan, with a median home price around $480,000. The City of Paterson offers its own First-Time Homebuyer Program funded through HUD HOME funds, providing down payment and closing cost assistance to income-eligible buyers. The Paterson Housing Authority also runs an HCV Homeownership Program that converts Section 8 rental vouchers into homeownership subsidies. At the state level, the NJHMFA Down Payment Assistance Program provides up to $15,000 as a forgivable loan, and first-generation buyers can add $7,000 through the NJHMFA First Generation Down Payment Assistance. The NJCC Statewide DPA offers up to $30,000, and NACA provides mortgages with no down payment, no closing costs, and no PMI. Paterson also has an exceptionally active Habitat for Humanity chapter that has built over 285 homes in the city since 1984, making it one of the most impactful local Habitat affiliates in the state.
Top Homebuyer Programs in Paterson
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Paterson First-Time Homebuyer Program | Deferred Loan | Varies based on available HOME funds | Yes | View → |
| Paterson Housing Authority HCV Homeownership Program | Grant | Housing Choice Voucher applied toward mortgage payment instead of rent | Yes | View → |
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
| NACA Best in America Mortgage Program | Zero-Interest Loan | No down payment, no closing costs, no fees, no mortgage insurance, below-market interest rate | No | View → |
| Paterson Habitat for Humanity Homeownership Program | Zero-Interest Loan | Below-market-price home purchase with affordable mortgage | Yes | View → |
| NJCC Statewide Down Payment Assistance Program | Grant | Up to $30,000 | Yes | View → |
| NJHMFA Down Payment Assistance Program | Forgivable Loan | Up to $15,000 | Yes | View → |
| NJHMFA First Generation Down Payment Assistance | Forgivable Loan | $7,000 | Yes | View → |
| NJHMFA First-Time Homebuyer Mortgage Program | Government-Insured Mortgage | Competitive 30-year fixed-rate mortgage | Yes | View → |
| NJHMFA HFA Advantage Mortgage Program | Government-Insured Mortgage | Competitive 30-year fixed-rate conventional mortgage | No | View → |
- Type:
- Deferred Loan
- Amount:
- Varies based on available HOME funds
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Housing Choice Voucher applied toward mortgage payment instead of rent
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- No down payment, no closing costs, no fees, no mortgage insurance, below-market interest rate
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Below-market-price home purchase with affordable mortgage
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Up to $30,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- $7,000
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- Competitive 30-year fixed-rate mortgage
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- Competitive 30-year fixed-rate conventional mortgage
- First-time only:
- No
How to Apply
- Step 1:
Check your eligibility. Most programs require income at or below HUD income limits for Passaic County. NJHMFA programs require income at or below 115% to 140% AMI and a minimum credit score of 620.
- Step 2:
Complete homebuyer education. The City of Paterson requires a Certificate of Completion from a HUD-certified Housing Counseling Agency. Contact the Paterson Task Force for Community Action at (973) 279-2333 for HUD-approved counseling in the area. NACA offers free 4-hour homebuying workshops.
- Step 3:
Contact the City of Paterson Department of Community Development. Call (973) 321-1600 to learn about the current availability of HOME-funded down payment assistance and application requirements.
- Step 4:
Get pre-approved for a mortgage. Contact an NJHMFA participating lender through theroadhomenj.com for state DPA programs, or begin the NACA qualification process for their no-down-payment mortgage.
- Step 5:
Find a home within program limits. The Paterson city program requires purchasing within Paterson city limits. NJHMFA programs apply statewide. Passaic County is eligible for up to $15,000 in NJHMFA DPA.
- Step 6:
Submit your applications and close. City HOME funds are limited and distributed on a first-come, first-served basis. NJHMFA DPA and First Generation assistance are applied at closing through your participating lender. Plan for a closing timeline of 45 to 60 days.