What is an FHA Loan? Requirements, How to Get One and Best Lenders
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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

2024 FHA Loan Limits in New Jersey

Updated on:
Content was accurate at the time of publication.

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.

County nameOne unitTwo unitsThree unitsFour unitsMedian 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

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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.

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.

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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 unitsLow-cost FHA loan limit
Two$637,950
Three $771,125
Four $958,350

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

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