Down payment and credit
FHA allows 3.5% down for borrowers with a credit score of 580 or higher, and 10% down for scores from 500 to 579. Lenders can set higher standards.
Mortgage insurance
FHA loans carry an upfront mortgage insurance premium (usually financed) and an annual premium paid monthly. Compare the total cost with a conventional loan with PMI. For some buyers, conventional ends up cheaper.
Property standards
The FHA appraisal checks safety and soundness. Older NJ homes can trip on peeling paint, missing handrails or roof issues. Budget time for repairs.
Multi-family with FHA
FHA can be used for 2–4 unit homes if you live in one unit. In towns with many two-families, this can be a powerful way to buy. See house hacking in NJ.
Questions, answered
What is the FHA loan limit in New Jersey?
FHA limits are set by county and change every year. Ask your lender for the current limit in your county.
General information, not legal, tax or lending advice. Rules change; confirm with your attorney, tax professional or lender.