New Jersey First-Time Homebuyer Guide
Everything you need to know about buying your first home in New Jersey — from property taxes and insurance costs to down payment assistance programs that can save you thousands.
Key homebuying statistics for New Jersey
Property Tax Rate
2.23%
Above national avg (1.10%)
Avg. Annual Insurance
$1,300
Below national avg ($1,700)
Closing Cost Estimate
4.00%
Above national avg (3.00%)
Data last verified: February 2026. Found incorrect data? Email us .
What These Numbers Mean for You
On a $350,000 home in New Jersey:
Annual property taxes
~$7,805
~$650/month
Annual homeowner's insurance
~$1,300
~$108/month
Estimated closing costs
~$14,000
Due at closing
These are estimates. Actual costs depend on your specific property, lender, and county. Use our calculators below for personalized estimates.
Buying a Home in New Jersey
New Jersey offers unique opportunities and challenges for first-time homebuyers. Understanding local costs is essential before you start house hunting, because property taxes, insurance, and closing costs vary significantly from state to state and can add hundreds of dollars to your monthly payment.
Keep in mind that New Jersey's property tax rate of 2.23% is above the national average of 1.10%. Factor this into your monthly budget when determining how much home you can afford. On the insurance side, New Jersey homeowners enjoy below-average premiums at $1,300/year.
As a first-time buyer, you likely qualify for one or more down payment assistance programs specific to New Jersey. These programs can significantly reduce the upfront cash you need to purchase a home. Check the programs listed below and reach out to a local HUD-approved housing counselor for personalized guidance.
New Jersey Down Payment Assistance Programs
NJHMFA Down Payment Assistance Program
Up to $15,000 as a forgivable second mortgage that requires no repayment after 5 years of living in the home.
NJHMFA First-Time Homebuyer Mortgage
Below-market-rate 30-year fixed mortgage for first-time buyers and eligible urban area purchasers.
Program details and eligibility requirements change. Visit each program's website for the most current information.
Try Our Calculators with New Jersey Data
Mortgage Payment Calculator
Estimate your monthly payment including principal, interest, taxes, and insurance.
Affordability Calculator
Find out how much home you can afford based on your income and debts.
Down Payment Calculator
Explore down payment options and understand PMI costs.
Closing Costs Estimator
Get a breakdown of expected closing costs for your purchase.
Amortization Schedule
See how your loan balance decreases over time with each payment.