NJHMFA Expands Free Housing Counseling to Include Pre-Purchase Counseling

TRENTON, NJ - The New Jersey Housing and Mortgage Finance Agency (NJHMFA) took action at its September 3 Board meeting to launch an expansion of the Agency's flagship housing counseling initiative. Starting in October, the new services will provide free pre-purchase counseling and homebuyer education for first-time homebuyers.

Through a combination of one-on-one counseling and group workshops, first-time homebuyers can learn how to navigate the homebuyer process and be better prepared for responsibilities and opportunities associated with homeownership. Studies demonstrate that this type of education significantly impacts and reduces the future likelihood of payment delinquency and foreclosure.

The recent action by NJHMFA implements P.L. 2026, c. 54, which was signed into law in July by Governor Mikie Sherrill. The legislation, which was sponsored by Senator Troy Singleton and Assemblywoman Yvonne Lopez, is intended to replace and expand upon receding federal resources made available for pre-purchase counseling and homebuyer education for first-time homebuyers.

"Buying a home is one of the biggest financial decisions a family can make, and my administration is ready to help New Jersey families navigate the process," said Governor Mikie Sherrill. "Through one-on-one counseling and group workshops, NJHMFA will help first-time buyers make informed decisions and prepare for both the opportunities and responsibilities of homeownership. This is how we open the door to homeownership for more families and help the next generation put down roots here in New Jersey."

"With this action, we are going to be able to provide a critical educational resource for thousands of New Jersey families looking to become homeowners and, in doing so, will improve the overall stability of the New Jersey homeownership market," said NJHMFA Executive Director Melanie R. Walter. "We are deeply grateful to Governor Sherill and our partners in the Legislature, like Senator Singleton and Assemblywoman Lopez, for their efforts to enable us to provide these resources."

"Pre-purchase counseling is a critical tool that helps first-time homebuyers understand budgeting, mortgage terms, credit obligations, and the long term-financial responsibilities associated with homeownership," said Senator Troy Singleton (D-Burlington). "This critical education can mean the difference between sustainable homeownership and financial distress. Ensuring these services are still available to as many New Jersey residents as possible will help buyers make more informed financial decisions."

"Homeownership is an important part of building financial stability and strong communities, but for many first-time buyers, the process can be overwhelming. Providing pre-purchase counseling and homebuyer education gives New Jersey families the knowledge and tools needed to make informed decisions and take that important step towards owning a home," said Assemblywoman Yvonne Lopez (D-Middlesex). I'm proud to support this expansion and am grateful to Governor Sherill, Senator Singleton, and NJHMFA for helping make sustainable homeownership more accessible to families across our state."

The program started with the Foreclosure Medication Assistance Program (FMAP) in the New Jersey Judiciary during the Great Recession before being permanently established as an NJHMFA program by legislation in 2019. Since then, more than 10,000 households have received critical housing counseling assistance, ranging from preparing household budgets and repairing credit to working with lenders and trained mediators to help homeowners avoid foreclosure.

Homeowners who receive counseling are nearly three times as likely to have their loans modified and 70 percent more likely to remain current following a modification. The effectiveness of counseling has inspired efforts to expand counseling and education to additional aspects of the homeownership process, from pre-foreclosure assistance to program application assistance after a natural disaster, and now, pre-purchase counseling.

The expansion of NJHMFA's housing counseling services reflects the Agency's continued commitment to supporting New Jersey residents at every stage of the homeownership journey. By providing first-time homebuyers with access to trusted guidance and education before purchasing a home, NJHMFA is helping families make informed financial decisions, build a strong foundation for sustainable homeownership, and strengthen communities across the state.

The component is slated to launch in October. Housing Counseling Agencies (HCAs) interested in participating in NJHMFA's housing counseling programs should contact NJHMFA Single Family Coordinator Lisa Callahan at [email protected]

About Us: The New Jersey Housing and Mortgage Finance Agency (NJHMFA) advances the quality of life for residents of and communities throughout New Jersey by investing in, financing, and facilitating access to affordable rental housing and homeownership opportunities for low and moderate-income families, older adults, and individuals with specialized housing needs. To learn more about NJHMFA, visit: njhousing.gov