First-time and repeat buyers
Buyers in Monmouth County and across New Jersey with a smaller down payment or a credit history that conventional rules do not fit. FHA loans are not only for first-time buyers.
New Jersey
FHA loans in New Jersey
An FHA loan is a mortgage on the home you live in, made by a private lender and insured by the Federal Housing Administration, that accepts smaller down payments and lower credit scores than most conventional loans. We offer FHA loans to buyers and homeowners in Monmouth County, along the Jersey Shore and across New Jersey.
- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
Start your FHA loan
Read how it works, see what help is available, then talk it through.
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Local lender
Why work with a New Jersey lender
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License, and an FHA-approved lender. Our New Jersey office is at 121 NJ-36, Suite 230, West Long Branch, and our licensed branch is at 1 Yorktowne Drive, Manalapan (branch NMLS ID #2103558).
Buying with a smaller down payment takes some planning: the loan limit for the county, what the appraiser will check on the home, and where the money for closing comes from. A licensed loan officer who works with Monmouth County buyers can go through each of them with you before you make an offer.
Who it suits
Who it suits in New Jersey
Buyers and owners of the home they live in, including people with a smaller down payment or a lower credit score than most conventional loans accept.
Buyers with a gift from family
A gift from a relative or another allowed donor can cover the down payment. You will need a gift letter and a record of the money moving.
Houses, small multi-unit homes and condos
A house, a house with more than one unit when you live in one of them, or a condominium that meets FHA’s rules for its project. The home must be your main residence.
Monmouth County
FHA in Monmouth County: the loan limit and the home
FHA sets a loan limit for each county, and your loan must fit the limit for the county where the home is. Monmouth County has its own limit, as does every other county in New Jersey: for 2026 it is $1,249,125 for a one-unit home in Monmouth County (every county’s limit). Your loan officer confirms the current figure for the county where you are buying, before you start making offers.
The home must be your main residence and meet HUD’s safety and soundness standards, which the FHA appraiser checks. Repairs may be required before closing. A Shore house you will rent out, or use only for part of the year, cannot be financed with an FHA loan; see investment property loans instead.
If the home needs work, an FHA renovation loan can pay for repairs or renovation with the same loan, with the money for the work paid out as it is done. See renovation loans.
Before you make an offer on a New Jersey home
- The county loan limit for the county where the home is, from your loan officer
- The current property tax bill for the home, from the seller, the listing agent or the town, because taxes are part of the monthly payment and are usually paid through an escrow account
- An insurance quote, with flood insurance if the home needs it
- For a condominium, whether the project meets FHA’s rules; ask early, before you sign a contract
- For a house with more than one unit, your plan to live in one of the units as your main residence
- The condition of the home: the FHA appraiser checks it against HUD’s standards and repairs may be required before closing, so an older home may suit a renovation loan
Loan limits
2026 FHA loan limits in New Jersey, by county
FHA sets a loan limit for each county, and your loan must fit the limit for the county where the home is. These are HUD’s limits for 2026.
| County | One unit | Two units | Three units | Four units |
|---|---|---|---|---|
| Atlantic County | $730,250 | $934,850 | $1,130,000 | $1,404,350 |
| Bergen County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Burlington County | $630,200 | $806,750 | $975,200 | $1,211,950 |
| Camden County | $630,200 | $806,750 | $975,200 | $1,211,950 |
| Cape May County | $730,250 | $934,850 | $1,130,000 | $1,404,350 |
| Cumberland County | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Essex County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Gloucester County | $630,200 | $806,750 | $975,200 | $1,211,950 |
| Hudson County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Hunterdon County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Mercer County | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Middlesex County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Monmouth County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Morris County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Ocean County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Passaic County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Salem County | $630,200 | $806,750 | $975,200 | $1,211,950 |
| Somerset County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Sussex County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Union County | $1,249,125 | $1,599,375 | $1,933,200 | $2,402,625 |
| Warren County | $541,287 | $693,050 | $837,700 | $1,041,125 |
Figures are HUD’s published limits for FHA case numbers assigned in 2026, as read on 5 November 2026 from HUD’s loan limit lookup (opens in a new tab). They are limits on the loan amount, not an offer or a loan decision; a loan officer confirms the figure for the county where you are buying.
Requirements
FHA loan requirements in New Jersey
FHA sets the rules and a lender may add its own. In general terms, this is what an FHA loan asks of you and of the home in New Jersey.
- Your main residence: the home must be where you live, and it must be a house of one to four units, an FHA-approved condominium or a manufactured home that meets HUD’s rules
- A down payment from your own savings, a documented gift or an approved assistance program; FHA’s minimum is smaller than most conventional loans ask for
- Credit that meets FHA’s rules; FHA accepts lower scores than most conventional loans, and a lender may set its own minimum
- Income you can document, so the new payment fits alongside your other monthly debts
- Mortgage insurance: an upfront premium, usually added to the loan, and an annual premium paid with your monthly payment
- The home must meet HUD’s safety and soundness standards, and the loan must fit the FHA loan limit for the county
- A New Jersey licensed lender: Fidelity Residential holds a New Jersey Residential Mortgage Lender License, which you can check on NMLS Consumer Access (opens in a new tab)
Down payment
Paying the down payment and closing costs in New Jersey
FHA lets you use more than your own savings for the money you bring to closing.
Your own money
Savings, checking and other accounts you can document. The source of large deposits is checked.
A documented gift
A gift from a relative or another allowed donor, with a gift letter and a record of the money moving.
Down payment assistance
Some national assistance programs we work with are open to FHA buyers in New Jersey. The assistance is usually a second loan with its own terms, forgivable or repayable depending on the program.
See the programs and estimate your helpNew Jersey’s own programs. Fidelity Residential is an FHA-approved lender. Ask your loan officer which down payment assistance programs fit the home you are buying in New Jersey; our down payment assistance page shows the programs we work with and estimates your help.
The seller may also pay part of your closing costs, up to a limit HUD sets.
How it works
How an FHA loan works
- A private lender, insured by FHA. The government does not lend the money; it insures the lender against loss, and you pay mortgage insurance in return.
- Two mortgage insurance premiums. An upfront premium, usually added to the loan, and an annual premium paid with your monthly payment. Your loan estimate shows both in dollars.
- Apply and document. The lender orders an FHA case number, pulls credit and runs the file through FHA’s automated scorecard, which lists the documents needed.
- Appraisal, underwriting and closing. The appraiser values the home and checks it against HUD’s standards, an underwriter reviews your documents, and you sign at closing.
A worked example, in words. Say you are buying a house in Monmouth County to live in, and a parent is giving you part of the down payment.
- The county limit. Your loan officer checks the loan you need against the current FHA limit for Monmouth County.
- The money for closing. Your own savings, the gift, with a gift letter and a record of the money moving, and any assistance program, which is usually a second loan with its own terms.
- The monthly payment. Principal and interest, the annual mortgage insurance premium, and property taxes and insurance, usually paid through an escrow account. The upfront premium is usually added to the loan.
- Your income and debts. The new payment has to fit alongside your other monthly debts, from income you can document.
- The home. The FHA appraiser values it and checks it against HUD’s safety and soundness standards; repairs may be required before closing.
Your loan estimate shows every one of these in dollars, including both mortgage insurance premiums. The mortgage payment calculator gives a first estimate with your own figures; it is an estimate, not an offer.
What you need for an FHA loan in New Jersey
The automated findings list exactly what your loan needs. Most buyers can start with these.
- Recent pay stubs and your W-2 forms
- Tax returns, and if you are self-employed, a year-to-date profit and loss statement
- Bank statements showing the money for the down payment and closing costs
- A gift letter if family is helping with the down payment
- Your signed purchase contract, once you have one
- Photo identification for everyone on the loan
See the full mortgage document checklist
Want the detail? Our FHA loan guide covers the requirements, mortgage insurance, the documents to gather and FHA refinances, and our down payment assistance page has an estimator for the programs we work with.
Questions
Questions from New Jersey home buyers
What are the FHA loan requirements in New Jersey?
The home must be your main residence and meet HUD’s standards, and the loan must fit the county limit. You need a down payment from your own savings, a documented gift or an approved assistance program, credit that meets FHA’s rules and the lender’s, and income you can document. FHA mortgage insurance is part of every loan. See the requirements in full.
How do I apply for an FHA loan in New Jersey?
Start with a quote: a loan officer reviews your income, debts, savings, credit and price range, and checks the loan limit for your county. After you apply, the lender orders an FHA case number, pulls credit and runs your file through FHA’s automated scorecard, which lists the documents needed. Then the home is appraised, an underwriter checks your documents, and you sign at closing. Get a quote or call 732-686-9999.
Is the FHA appraisal the same as a home inspection?
No. The FHA appraiser values the home and checks it against HUD’s safety and soundness standards for the loan. A home inspection is a separate, more detailed look at the home’s condition that you arrange for yourself; HUD gives FHA buyers a notice, “For Your Protection: Get a Home Inspection”, that recommends one.
What should I look for in an FHA lender in New Jersey?
A lender licensed in New Jersey, which you can check on NMLS Consumer Access; a loan officer who explains both FHA mortgage insurance premiums and the limit for your county; and clear answers on the lender’s own credit rules, since a lender may set its own minimum above FHA’s. Compare the Loan Estimates you receive line by line: they show the rate, the costs and the monthly payment in the same format from every lender.
Do you offer FHA loans in New Jersey?
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License. You can check it on NMLS Consumer Access (opens in a new tab).
Where are you located?
Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, and our licensed branch is at 1 Yorktowne Drive, Manalapan, NJ 07726. Call 732-686-9999 to talk with a licensed loan officer.
What is the FHA loan limit in Monmouth County?
For 2026, HUD’s FHA limit for a one-unit home in Monmouth County is $1,249,125; the limits for two to four units are higher. The loan must fit the limit for the county where the home is. See every New Jersey county’s limit.
Can I get down payment assistance with an FHA loan in New Jersey?
Some national assistance programs we work with are open to FHA buyers in New Jersey, usually as a second loan with its own terms. Your loan officer can tell you which programs fit the home you are buying. See the programs and estimate your help.
Are FHA loans only for first-time buyers?
No. Any buyer can use an FHA loan, as long as the home will be their main residence and the loan fits FHA’s rules and the county loan limit.
Can I buy a Shore home or a rental with an FHA loan?
Only if it will be your main residence. A house with more than one unit can be financed when you live in one of the units. A home you will rent out or use for part of the year is not eligible; see investment property loans.
What credit score do I need for an FHA loan?
FHA sets a minimum credit score, and a lender may set its own. FHA accepts lower scores than most conventional loans. A loan officer can tell you where you stand after reviewing your credit.
How much do I need for a down payment on an FHA loan in New Jersey?
FHA’s minimum down payment is smaller than most conventional loans ask for. It can come from your own savings, a documented gift or an assistance program FHA allows, and the seller may pay part of your closing costs, up to a limit HUD sets. Your loan officer works out the figure for the home you are buying and your credit.
Does FHA mortgage insurance ever end?
There are two premiums. The upfront premium is paid once, usually added to the loan. The annual premium is paid with your monthly payment: with a larger down payment it ends after a set number of years, and with a smaller one it lasts for the life of the loan. Refinancing into a different loan later is one way some owners remove it.
Should I use an FHA loan or a conventional loan?
FHA accepts smaller down payments and lower credit scores than most conventional loans, and every FHA loan carries mortgage insurance. If your credit and savings could fit a conventional loan as well, ask for both and compare the two loan estimates side by side for the same home.
Can I buy a condo at the Shore with an FHA loan?
Yes, if it will be your main residence and the condominium meets FHA’s rules for its project. Ask your loan officer to check the project early, before you sign a contract. A condo you will rent out or use for part of the year is not eligible.
Can I get an FHA loan after a bankruptcy or foreclosure?
Sometimes. FHA sets waiting periods after events such as a bankruptcy or foreclosure, and the lender looks at how your credit has been handled since. Tell your loan officer about it at the start.
Can I refinance my New Jersey home with an FHA loan?
Yes, if it is your main residence. An FHA loan can replace another mortgage to change the rate or the length of the loan, or replace it with a larger one and pay you the difference in cash. If you already have an FHA loan, a streamlined FHA refinance needs less paperwork and no appraisal, and it must give you a real benefit. See refinancing your mortgage.
Can a permanent resident get an FHA loan in New Jersey?
Yes. Lawful permanent residents are treated on the same terms as U.S. citizens.
Talk about an FHA loan in New Jersey
Get a quote online, or call and plan your purchase with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.