FHA Loan Calculator for New Jersey

FHA Loans in New Jersey

FHA loans require a minimum 3.5% down payment (10% if credit score is 580-619). On New Jersey's median home of $480,000, that's a minimum down payment of $16,800.

FHA Loan Limits in New Jersey

FHA loan limits vary by county and are tied to conforming limits. In most New Jersey counties, the FHA floor limit is $498,257 (2024). High-cost areas like New Jersey (limit: $1,089,300) may qualify for higher limits up to $1,149,825. All New Jersey counties qualify for high-cost conforming limits, ranging from $952,750 to $1,089,300 depending on the county.

FHA vs Conventional in New Jersey

FHA MIP (Mortgage Insurance Premium) is required regardless of down payment. Conventional loans eliminate PMI at 20% equity. With New Jersey's median home at $480,000, buyers who can put down $96,000 (20%) are better served by conventional financing. FHA makes sense for buyers with limited savings or credit scores below 740.

Closing Costs

New Jersey closing costs average $7,200. New Jersey has a Realty Transfer Fee (RTF) of up to 1.21% of sale price on the seller side. Buyers also pay a Mansion Tax of 1% on residential purchases above $1M. Combined, closing costs are among the highest in the nation. Sellers can contribute up to 6% of the purchase price toward FHA buyer closing costs.

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