2024 FHA Loan Limits in New Jersey by County

The Federal Housing Administration (FHA) determines the maximum loan amount borrowers can qualify for when seeking an FHA loan. These FHA loan limits can vary by county and are based on the median home prices in each county. FHA loan limits are adjusted annually based on housing market changes. In New Jersey, FHA loan limits fall into two main categories:

  • Standard Loan Limits. These limits apply to most counties in the state and serve as a baseline for FHA mortgages.
  • High Cost Area Loan Limits. These limits are higher than the standard limits and apply to counties with significantly higher median home prices, such as Bergen, Essex, Hudson, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, and Union counties.

For a 1 unit home (single family) the limits in New Jersey range from a standard limit of $498,257 up to a high cost limit of $1,149,825. FHA also has different loan limits based on the number of units in the home. Below are the 2024 FHA loan limits for 1- 4 unit properties in NJ for each county.

County1 Unit2 Units3 Units4 Units
CAPE MAY$557,750$714,000$863,100$1,072,600

View FHA Loan Limits for Other States

California FHA Loan LimitsNew York FHA Loan Limits
Connecticut FHA Loan LimitsPennsylvania FHA Loan Limits
Florida FHA Loan LimitsTexas FHA Loan Limits

Why FHA Loan Limits in New Jersey are Higher in 2024

FHA loan limits in New Jersey have increased in 2024 compared to the previous year due to the continuous rise in home prices across the state. The competitive housing market and high demand for homes have led to an appreciation in home values. The higher loan limits allow borrowers to keep pace with the market and provide more purchasing power, especially for first-time homebuyers and those with limited financial resources.

How to get pre-approved for a FHA loan in New Jersey

Getting pre-approved for a FHA mortgage is quick and easy with our Online Loan Application. After completing the application, you will receive instructions on how to upload your documents. For a list of documents you will need to upload, see our Pre-approval Document Checklist.

FHA Mortgage Rates in New Jersey

View our current New Jersey FHA mortgage rates.

FHA Loan Limits FAQs

Loan limits vary because they are based on the median home prices in specific areas. This approach ensures that the amounts reflect the local real estate market, making FHA loans accessible and reasonable for homebuyers in different regions.

FHA loan limits can change annually. The Department of Housing and Urban Development (HUD) reviews and adjusts the limits each year based on movements in the housing market and home price indices.

If the home price exceeds the FHA loan limits for your county, you have a few options: consider a different home that falls within the loan limits, make a larger down payment to cover the difference, or look into different types of financing, such as a conventional mortgage or a jumbo loan.

See our FHA Loan Requirements for more information on how to qualify for a FHA loan.

No, there are no income limits for obtaining an FHA loan. However, borrowers must meet debt-to-income (DTI) ratio guidelines and prove their ability to repay the loan. Typically, FHA guidelines require a DTI ratio of 57% or less.

No, FHA loans do not have prepayment penalties. Borrowers can make additional payments or pay off their FHA loans early without facing any financial penalties.