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2021 FHA Loan Limits in New Jersey

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The FHA loan limit in New Jersey has increased to $356,362 for a single-family home in many counties in the state. However, in higher-cost areas like Bergen and Essex counties, the maximum FHA loan limit goes up to $822,375 for a single-family home.

If you’ve always wanted to live in New Jersey, now may be the perfect time to start your home search in the Garden State. And thanks to the Federal Housing Administration (FHA), some New Jersey residents can qualify for federally backed loans with lower credit score and down payment requirements. This year, New Jersey homebuyers and homeowners will be able to borrow even more with an FHA loan.

New Jersey FHA loan limits by county

FHA Loan Limits in New Jersey
County Name One-Family Two-Family Three-Family Four-Family Median Sale Price
Atlantic $356,362 $456,275 $551,500 $685,400 $221,000
Bergen $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Burlington $431,250 $552,050 $667,350 $829,350 $375,000
Camden $431,250 $552,050 $667,350 $829,350 $375,000
Cape May $431,250 $552,050 $667,350 $829,350 $375,000
Cumberland $356,362 $456,275 $551,500 $685,400 $144,000
Essex $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Gloucester $431,250 $552,050 $667,350 $829,350 $375,000
Hudson $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Hunterdon $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Mercer $356,362 $456,275 $551,500 $685,400 $235,000
Middlesex $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Monmouth $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Morris $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Ocean $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Passaic $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Salem $431,250 $552,050 $667,350 $829,350 $375,000
Somerset $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Sussex $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Union $822,375 $1,053,000 $1,272,750 $1,581,750 $960,000
Warren $372,600 $477,000 $576,550 $716,550 $235,000

How are FHA loan limits determined?

The U.S. Department of Housing and Urban Development (HUD) sets limits on how expensive a house the FHA will insure in each county in the United States. These limits are set based on the current year’s conforming loan limit — or how large of a mortgage Fannie Mae and Freddie Mac will purchase. In 2021, that conforming limit is $548,250, up roughly $38,000 from 2020’s limit of $510,400.

The FHA “floor” is the largest mortgage the agency will issue in most of the country and is 65% of the conforming loan limit. In 2021, the FHA floor is set at $356,362, an increase of about $24,600 above the 2020 limit of $331,760.

The FHA “ceiling” is a higher limit that only applies to high-cost areas. This is set at 150% of the conforming loan limit, or $822,375 for single-family homes. With a few exceptions, this is generally the largest mortgage amount the agency will insure for a single-family home. In many parts of the country, loan limits fall somewhere between the FHA floor and ceiling.

Outside of the lower 48 states, FHA maximum loan limits are higher because of more expensive construction costs. These include the special exception areas of Alaska, Hawaii, Guam and the U.S. Virgin Islands.

Here are the 2021 standard FHA limits for all property types:

  • One-unit: $356,362
  • Two-unit: $456,275
  • Three-unit: $551,500
  • Four-unit: $685,400

Here are the 2021 standard FHA limits for high-cost areas:

  • One-unit: $822,375
  • Two-unit: $1,053,000
  • Three-unit: $1,272,750
  • Four-unit: $1,581,750

Do you qualify for an FHA loan in New Jersey?

FHA loans are a great deal for qualified buyers, thanks to lower down payments and closing costs. Find out if your credit score and income will help you qualify for one of these loans.

 

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