2024 FHA Loan Limits in New Jersey
If you’re looking to buy a home in the Garden State with a Federal Housing Administration (FHA) loan, you’ll have to make sure that the mortgage falls within the FHA loan limits. For 2024, the limits in New Jersey range from $498,257 to $1,149,825 for single-family homes.
Here’s what else you should know about qualifying for an FHA loan in New Jersey.
New Jersey FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| ATLANTIC | $498,257 | $637,950 | $771,125 | $958,350 | $310,000 |
| BERGEN | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| BURLINGTON | $557,750 | $714,000 | $863,100 | $1,072,600 | $485,000 |
| CAMDEN | $557,750 | $714,000 | $863,100 | $1,072,600 | $485,000 |
| CAPE MAY | $557,750 | $714,000 | $863,100 | $1,072,600 | $485,000 |
| CUMBERLAND | $498,257 | $637,950 | $771,125 | $958,350 | $195,000 |
| ESSEX | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| GLOUCESTER | $557,750 | $714,000 | $863,100 | $1,072,600 | $485,000 |
| HUDSON | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| HUNTERDON | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| MERCER | $498,257 | $637,950 | $771,125 | $958,350 | $305,000 |
| MIDDLESEX | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| MONMOUTH | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| MORRIS | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| OCEAN | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| PASSAIC | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| SALEM | $557,750 | $714,000 | $863,100 | $1,072,600 | $485,000 |
| SOMERSET | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| SUSSEX | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| UNION | $1,149,825 | $1,472,250 | $1,779,525 | $2,211,600 | $1,034,000 |
| WARREN | $498,257 | $637,950 | $771,125 | $958,350 | $325,000 |
How are FHA loan limits determined?
Both the FHA loan limit “floor” and “ceiling” are set each year and are based on conforming loan limits and localized median home prices. Overall, the 2024 loan limits are higher than 2023 because of home-price appreciation.
The FHA loan limit “floor” (or the max loan amount in low-cost areas) is calculated as 65% of the national conforming loan limit. For high-cost areas, the “ceiling” is calculated as 150% of the national conforming loan limit. The ceiling limit for single-family homes in 2024 is $1,149,825.
How to qualify for an FHA loan in New Jersey
To qualify for an FHA loan, you’ll need to satisfy several key requirements — though those with imperfect credit are certainly not excluded here. First, you’ll have to get the home appraised by an FHA-approved appraiser. And, as noted, the size of the loan must fall within the loan limits for your area.
Beyond that, these are the minimum requirements to get an FHA loan:
→ 500+ credit score: You must have a credit score of at least 500 to get an FHA loan, though requirements change for those with higher scores.
→ At least a 3.5% down payment: Applicants with a 580 or higher credit score can qualify for a 3.5% down payment. But those with a score of 500 to 579 need to provide a 10% down payment.
→ Clean repayment history: Keep in mind that having things like foreclosures, liens or bankruptcies on your credit history can lead to your application being denied.
→ Live in the house for at least one year: You need to live in the home for at least a year, and that has to start within 60 days of signing.
→ Debt-to-income (DTI) ratio below 43%: Your debt payments can generally only amount to 43% of your income. For instance, if you were to earn $5,000 a month, your debt payments must be under $2,150.
→ Verifiable income: Your application must include documentation showing your monthly income in order to qualify. That can include a tax return, bank statements or even pay stubs.
→ Mortgage insurance: Two types of FHA mortgage insurance are generally required: an upfront premium of 1.75% of the loan amount, plus an annual insurance premium that ranges from 0.15% to 0.75% of the loan amount.
Buying a multifamily property with an FHA loan
Although you may only think of single-family homes when you hear “FHA loan,” you can actually use it to buy multifamily properties with two to four units, too. So you may still be able to put as little as 3.5% down, depending on your credit score. And, in addition to generally higher loan limits, you can use future rental income to help you qualify for a multifamily FHA loan.
The general requirements for multifamily FHA loans include:
- FHA appraisal
- 500+ credit score
- DTI ratio of 43% or lower
- Living in one of the units
| Number of units | Low-cost FHA loan limit |
|---|---|
| Two | $637,950 |
| Three | $771,125 |
| Four | $958,350 |
FHA lenders in New Jersey
Lender | LendingTree rating | Min. FHA credit score | |
|---|---|---|---|
 | 580 | ||
 | Not disclosed | ||
 | 580 | ||
 | 580 | ||
 | 580 |
