2026 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 $541,287 up to a high cost limit of $1,249,125. FHA also has different loan limits based on the number of units in the home. Below are the 2026 FHA loan limits for 1- 4 unit properties in NJ for each county.
| County | 1 Unit | 2 Units | 3 Units | 4 Units |
|---|---|---|---|---|
| CUMBERLAND, MERCER, WARREN | $541,287 | $693,050 | $837,700 | $1,041,125 |
| BURLINGTON, CAMDEN, GLOUCESTER, SALEM | $630,200 | $806,750 | $975,200 | $1,211,950 |
| ATLANTIC, CAPE MAY | $730,250 | $934,850 | $1,130,000 | $1,404,350 |
| BERGEN, ESSEX, HUDSON, HUNTERDON, MIDDLESEX, MONMOUTH, MORRIS, OCEAN, PASSAIC, SOMERSET, SUSSEX, UNION | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
Look up 2026 loan limits for any US county
Use our calculator below to see exact 2026 FHA and conforming loan limits for any United States county.
2026 FHA loan limits in New Jersey high cost counties
Twelve of New Jersey's twenty one counties qualify for HUD's ceiling FHA loan limit in 2026. All twelve are part of the New York-Newark-Jersey City Metropolitan Statistical Area as defined by the Office of Management and Budget, and HUD treats the entire NYC-Newark MSA as one high cost area. The 2026 FHA ceiling of $1,249,125 for a one unit property applies uniformly across all twelve, regardless of substantial price variation between, for example, downtown Jersey City and rural Sussex County.
Bergen, Hudson, and Essex County FHA limits
Bergen, Hudson, and Essex are the most populous and most FHA active counties in New Jersey. Bergen County (Hackensack, Paramus, Englewood, Fort Lee, Ridgewood, Fair Lawn, Teaneck, Fairview) is the state's most populous county and sees substantial FHA volume in its older urban centers and modest suburban municipalities. Hudson County (Jersey City, Hoboken, Union City, West New York, Bayonne, North Bergen, Weehawken, Secaucus) is one of the most dense FHA condo markets in the country, with the Hudson waterfront condo inventory split between FHA approved and non-approved buildings. Essex County (Newark, East Orange, Orange, Bloomfield, Montclair, Belleville, Nutley, Irvington) sees the highest FHA share by transaction count of any New Jersey county, anchored by Newark's first time buyer market. The 2026 FHA limit in all three counties is $1,249,125 for a one unit property with multi-unit limits increasing to $2,402,625 for a four unit property.
Middlesex, Monmouth, Morris, Somerset, and Union County FHA limits
Five inner suburban NYC-Newark MSA counties share the same FHA ceiling at $1,249,125: Middlesex (Edison, Woodbridge, New Brunswick, Perth Amboy, Piscataway, Sayreville, Old Bridge, East Brunswick), Monmouth (Asbury Park, Long Branch, Freehold, Middletown, Marlboro, Howell, Manalapan, Red Bank), Morris (Morristown, Parsippany, Mount Olive, Randolph, Denville, Chatham, Madison), Somerset (Bridgewater, Franklin, Hillsborough, Bound Brook, Somerville, Bernards), and Union (Elizabeth, Plainfield, Linden, Union, Westfield, Rahway, Cranford, Summit). The two unit limit in all five counties is $1,599,375, three unit is $1,933,200 and four unit is $2,402,625.
Hunterdon, Ocean, Passaic, and Sussex County FHA limits
The remaining four NYC-Newark MSA counties share the same ceiling FHA limit: Hunterdon (Flemington, Clinton, Lambertville, Raritan Township), Ocean (Toms River, Brick, Lakewood, Jackson, Manchester, Berkeley, Stafford, Point Pleasant), Passaic (Paterson, Clifton, Passaic, Wayne, West Milford, Wanaque, Hawthorne), and Sussex (Newton, Sparta, Vernon, Hopatcong, Hardyston, Frankford). Ocean and Passaic counties have substantial FHA volume, Ocean for the Lakewood multifamily market and Toms River shore properties; Passaic for the Paterson and Clifton first time buyer market. The 2026 FHA limit in all four counties is $1,249,125 for a one unit, increasing to $2,402,625 for a four unit.
2026 FHA loan limits in New Jersey mid-tier counties
Atlantic and Cape May County FHA limits
Atlantic County (Atlantic City, Egg Harbor Township, Hammonton, Galloway, Pleasantville, Absecon) and Cape May County (Cape May, Ocean City, Wildwood, Stone Harbor, Avalon, Middle Township) form their own intermediate FHA tier at $730,250 for a one unit property, with multi-unit limits at $934,850 (2 unit), $1,130,000 (3 unit), and $1,404,350 (4 unit). Both counties make up the Atlantic City-Hammonton Metropolitan Statistical Area, which HUD designates as a distinct high cost area separate from the NYC-Newark MSA. The intermediate FHA limit accommodates the higher home prices in the Cape May shore communities (Avalon, Stone Harbor, Sea Isle City, Ocean City) without pushing all of South Jersey to the NYC-level ceiling.
Burlington, Camden, Gloucester, and Salem County FHA limits
The four New Jersey counties in the Philadelphia-Camden-Wilmington Metropolitan Statistical Area share an intermediate FHA limit of $630,200 for a one unit property: Burlington (Mount Laurel, Burlington, Willingboro, Evesham, Moorestown, Medford), Camden (Camden, Cherry Hill, Voorhees, Gloucester Township, Pennsauken, Haddonfield, Collingswood), Gloucester (Washington Township, Deptford, Mantua, Glassboro, Monroe Township), and Salem (Salem, Pennsville, Carneys Point, Penns Grove). Multi-unit limits increase to $1,211,950 for a four unit property. South Jersey's Philadelphia-side counties carry their own FHA tier because the Philadelphia MSA's median home prices are higher than the floor but well below the NYC MSA's ceiling.
2026 FHA loan limits in New Jersey floor counties
Three New Jersey counties carry the standard FHA floor limit in 2026: Cumberland (Vineland, Bridgeton, Millville), Mercer (Trenton, Princeton, Hamilton, Ewing, Lawrence), and Warren (Phillipsburg, Hackettstown, Washington, Belvidere). The 2026 floor for a one unit property is $541,287, with multi-unit limits at $693,050 (2 unit), $837,700 (3 unit), and $1,041,125 (4 unit).
What happens if your New Jersey purchase exceeds the FHA loan limit?
If your purchase price requires a loan that exceeds the FHA limit for your New Jersey county, FHA financing isn't an option for the full amount. Common alternatives include:
- Conventional conforming loan. The 2026 New Jersey conforming loan limit is $832,750 (baseline) or $1,209,750 (high cost counties), meaning conventional financing reaches further than FHA in nearly every NJ county. Conventional loans require 3-5% minimum down for first-time buyers with a 620+ credit score, or 20% down to avoid mortgage insurance. See our 2026 New Jersey Conforming Loan Limits page for full conforming county details.
- Jumbo loan. If your purchase exceeds both FHA and conforming limits, jumbo financing is the next step. Jumbo requirements are typically stricter (700+ credit score, 10-20% down, lower DTI), but rates often price competitively with conforming for strong borrowers.
- Larger down payment. Increasing your down payment can bring your loan amount within the FHA or conforming limit. In counties where FHA limits are at the floor ($541,287), this may not be practical for typical purchases; in the NYC MSA counties where the FHA ceiling is $1,249,125, a modestly larger down payment can keep FHA financing as an option on most NJ purchases.
How to get pre-approved for a New Jersey FHA loan
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.
Ready to get started on your NJ FHA loan?
Whether you're a first-time buyer, refinancing an existing FHA loan, or considering an FHA 203(k) renovation loan, Alpine Mortgage is ready to help. The next step depends on where you are in the process:
Or call (201) 488-8809 to speak with a New Jersey FHA loan originator today.
Steven Parangi is a licensed mortgage loan originator (NMLS #76024) and attorney with over 20 years of experience in residential home lending. As the founder of Alpine Mortgage, Steven works directly with borrowers to review their mortgage options and assist them throughout the home financing process. Content published on AlpineBanker.com is reviewed regularly by Steven to reflect current lending guidelines and market conditions.
View full author profile →New Jersey 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.
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