New Jersey FHA Loan Requirements 2026
This guide to New Jersey FHA loan requirements covers loan limits for every New Jersey county, credit score and down payment requirements, MIP costs, and how FHA financing pairs with NJHMFA’s down payment assistance program.
FHA Loan Limits by New Jersey County (2026)
FHA loan limits are set by HUD and updated annually based on local median home prices. New Jersey has a wide range of limits — counties in the New York City metro area carry the national ceiling, while more rural and southern counties sit at or near the national floor.
| County | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| Atlantic | $730,250 | $934,850 | $1,130,000 | $1,404,350 |
| Bergen | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Burlington | $630,200 | $806,750 | $975,200 | $1,211,950 |
| Camden | $630,200 | $806,750 | $975,200 | $1,211,950 |
| Cape May | $730,250 | $934,850 | $1,130,000 | $1,404,350 |
| Cumberland | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Essex | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Gloucester | $630,200 | $806,750 | $975,200 | $1,211,950 |
| Hudson | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Hunterdon | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Mercer | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Middlesex | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Monmouth | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Morris | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Ocean | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Passaic | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Salem | $630,200 | $806,750 | $975,200 | $1,211,950 |
| Somerset | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Sussex | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Union | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Warren | $541,287 | $693,050 | $837,700 | $1,041,125 |
Twelve New Jersey counties in the New York-Newark-Jersey City metro area sit at the national FHA ceiling of $1,249,125, while Cumberland, Mercer, and Warren counties sit at the national floor of $541,287. Burlington, Camden, Gloucester, and Salem counties (Philadelphia metro) fall in between at $630,200. Limits are set per-county by HUD and updated annually; always confirm your exact county limit using HUD’s official FHA Mortgage Limits lookup tool before making an offer.
New Jersey FHA Loan Requirements Overview
| Requirement | Standard FHA | Notes |
|---|---|---|
| Credit score | 580 (3.5% down); 500–579 (10% down) | Most NJ lenders require 620+ |
| Down payment | 3.5% | Can combine with NJHMFA Down Payment Assistance |
| DTI ratio | Up to 57% with strong factors | 43% preferred |
| Primary residence | Required | Owner-occupied only |
| Property condition | Must meet FHA Minimum Property Standards | Older housing stock common in North Jersey and inner-ring suburbs — check roofing, electrical, and plumbing systems |
FHA Mortgage Insurance Premiums (MIP)
| MIP Type | Rate | On a $400,000 Loan |
|---|---|---|
| Upfront MIP (UFMIP) | 1.75% of loan amount | $7,000 (typically financed) |
| Annual MIP (monthly) | 0.55%/yr (30-yr, LTV 95%+) | ~$183/mo |
MIP cancellation: FHA MIP is permanent on loans originated after June 3, 2013, with less than 10% down payment. For New Jersey buyers who put down 10% or more, MIP cancels after 11 years. Many New Jersey borrowers refinance into a conventional loan once they reach 20% equity to eliminate MIP.
FHA vs. Conventional in New Jersey
| Factor | FHA | Conventional |
|---|---|---|
| Min credit score | 580 | 620 |
| Down payment | 3.5% | 3–20% |
| Mortgage insurance | MIP (permanent with <10% down) | PMI (cancels at 80% LTV) |
| Max loan limit (high-cost counties) | $1,249,125 | Conforming limit applies ($1,209,750) |
| NJHMFA DPA pairing | Yes — can cover down payment + some costs | Yes — via HFA Advantage Mortgage Program |
| Best for | Lower credit, gift/assistance funds, first-time buyers | 680+ credit, plans to cancel PMI, stronger assets |
NJHMFA + FHA Combination
The most common NJHMFA combination is pairing the Down Payment Assistance Program with an FHA first mortgage. Here’s how it works on a $400,000 purchase:
| Item | Amount |
|---|---|
| Purchase price | $400,000 |
| FHA down payment (3.5%) | $14,000 |
| NJHMFA DPA (up to $15,000, county-based) | Up to $15,000 |
| Net down payment from buyer | $0 (assistance can cover down payment + some costs) |
NJHMFA’s DPA amount is based on the county of the property being purchased and is structured as an interest-free, five-year forgivable second loan with no monthly payment — it is forgiven if you remain in the home for five years. Confirm current terms at nj.gov/dca/hmfa.
