Two years ago, you bought a rental property using a short-term loan, planning to refinance before it matured. At the time, this was a common strategy — property values were climbing, and b...
First-Time Buyers in Monmouth County, New Jersey Can Purchase Homes With Far Less Than 20 Percent Down
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Date:
21 Jul 2026
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Many first-time buyers in New Jersey delay purchasing for years because they believe they need 20 percent down. According to Anastasia Cafiero, a Realtor with Realty ONE Group Central who serves Monmouth County’s Freehold, Marlboro, and Manalapan areas, that belief is wrong, and the actual entry point is low enough that some renters could buy now with savings they already have.
Cafiero says buyers routinely tell her they need 20 percent down before they can purchase. She traces the belief to informal advice – things heard from friends or read online – rather than conversations with lenders or housing counselors. The result is that people who could qualify for a mortgage today spend years saving toward a threshold that was never required.
The actual numbers in New Jersey involve layered assistance programs most first-time buyers never explore. Cafiero points to a $15,000 grant available to first-time buyers in Monmouth County toward closing costs. An additional $7,000 may be available if the buyer’s parents did not own a home in the previous three years. Combined with an FHA loan requiring just three and a half percent down, the out-of-pocket figure drops sharply.
“You could literally buy a house with just $10,000 in your bank account,” Cafiero says. That figure contrasts starkly with the $60,000 or $80,000 many renters assume they need before they can start shopping.
The gap between perception and reality costs buyers more in a market like Monmouth County, where prices are climbing and inventory is tight. According to Cafiero, inventory is currently at a 2.7-month supply, well below the five to six months that indicates a balanced market, and prices continue rising. Every month a buyer spends saving toward a fictional 20-percent threshold is a month where home values may rise faster than their savings. The delay itself becomes a cost.
Buying with minimal down payment carries trade-offs. Putting less than 20 percent down typically means paying mortgage insurance, which adds to monthly costs. It also means starting with less equity, a cushion that matters if the market dips or if a buyer needs to sell sooner than planned. A buyer who stretches to the absolute minimum down payment and then faces an unexpected expense can find themselves financially constrained.
Still, Cafiero frames the core issue as education rather than affordability. “A lot of people think it’s unachievable because of the lack of information and education,” she says.
Grant programs like those Cafiero describes are not unique to Monmouth County. Many states and counties offer similar first-time buyer assistance, though amounts, eligibility requirements, and application timelines vary. Some programs require homebuyer education courses, some have income caps, and some are first-come-first-served with limited annual funding. A buyer who assumes the money will be there when they are ready to close may discover the program’s allocation has already been claimed for the year.
For renters in New Jersey who have assumed ownership is out of reach, the practical step is speaking with a licensed mortgage professional who can run the numbers with current programs factored in, not relying on informal advice or online searches. The answer may still be “not yet,” but in Monmouth County specifically, that $15,000 grant plus the potential additional $7,000 represents meaningful money toward a purchase that many buyers have already mentally disqualified themselves from.
About the Expert: Anastasia Cafiero is a Realtor with Realty ONE Group Central, with over a decade of experience serving the central towns of Monmouth County, New Jersey.
This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.
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