This is an amazing program for first time home buyers. This State run program will essentially give you $16,000 at closing to use towards your down payment and closing costs. 

The house in question must be a 1-4 Family home, and be located in Essex, Passaic, Union, Atlantic, Camden, or Gloucester County.

Restrictions on Applicants

• Must be First Time Home Buyer (Not have owned a home in 3-years)
• Must have a minimum credit score of 620
• Excluding Retirement Funds(IRA & 401k) applicant must not have more than 20% of loan amount in liquid funds
• Maximum Income Limit of $127,000-$135,000 depending on county
• Must live in the property and stay for a full 5 years!
• For a Single Family Property can be no more than $437,000, 2-4 units are up to $559,000

Mortgage Restrictions if using HomeSeeker Program

• Must use one of 3 Mortgage Options
• FHA Mortgage: Requiring 3.5% down
• VA Mortgage: Requiring 0% down (Military only)
• USDA Mortgage: 0% (Rural Areas)
• You cannot use conventional financing
• The FHA interest Rate through HomeSeeker is lower(3.875%) than regular FHA(4.125%) interest rate

What this means!

-If going FHA, and only putting 3.5% down, you can essentially buy a $457,000 house and not have to pay any down-payment! Of course, if you want to pay nothing out of pocket at all for the house you probably only want to buy a $250,000($8,750) house, that way you get all your down payment and ~closing costs($7,250) covered. How awesome is that!

-If you're really smart you will use this program to buy a 4-Family House Hack, get leases for the other 3 units before closing, and they will consider 75% of the potential income as your income. Done right, you will have bought a cash-flowing property that you can live in all with no money out of pocket!

Find out more: http://www.njhousing.gov/dca/hmfa/homeownership/bu...

• If interested in a similar program that is a little less generous but works for other counties in certain areas of New Jersey look into the "Smart Start" program.
• Received a lot of this information from Ron at Cross Country Mortgage in Montvale, NJ. Very knowledgeable and helpful, give him a call.
• Thanks to @Jennifer Escobar for first bringing this program to my attention