Home values in most New Jersey towns and cities rose steadily during 2017. This prompted the Federal Housing Finance Agency (FHFA) to raise the conforming loan limits for all counties in New Jersey, for 2018. So the jumbo mortgage threshold went up as well. Additionally, the Department of Housing and Urban Development (HUD) increased the limits for FHA loans in New Jersey.
2018 Conforming & VA Loan Limits for New Jersey
A conforming loan is one that meets or “conforms” to the size restrictions used by Fannie Mae and Freddie Mac, the government-sponosored corporations that buy mortgages from lenders. Veterans Affairs (VA) home loans have the same limits as conforming mortgage products, at least for 2018.
Here are the 2018 VA and conforming loan limits for all New Jersey counties:
| County | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
| ATLANTIC | $453,100 | $580,150 | $701,250 | $871,450 |
| BERGEN | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| BURLINGTON | $453,100 | $580,150 | $701,250 | $871,450 |
| CAMDEN | $453,100 | $580,150 | $701,250 | $871,450 |
| CAPE MAY | $453,100 | $580,150 | $701,250 | $871,450 |
| CUMBERLAND | $453,100 | $580,150 | $701,250 | $871,450 |
| ESSEX | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| GLOUCESTER | $453,100 | $580,150 | $701,250 | $871,450 |
| HUDSON | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| HUNTERDON | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| MERCER | $453,100 | $580,150 | $701,250 | $871,450 |
| MIDDLESEX | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| MONMOUTH | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| MORRIS | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| OCEAN | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| PASSAIC | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| SALEM | $453,100 | $580,150 | $701,250 | $871,450 |
| SOMERSET | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| SUSSEX | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| UNION | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| WARREN | $453,100 | $580,150 | $701,250 | $871,450 |
Note: In this table, the “1-unit” column applies to single-family homes. The “2-unit” column refers to duplex-style properties with two residents, and so on.
FHA Loan Limits
FHA loan limits for New Jersey and the rest of the nation are established by a different housing agency. This program is managed by the Federal Housing Administration, which falls under the Department of Housing and Urban Development. The official FHA loan limits were increased for most New Jersey counties from 2017 to 2018, in response to rising home values.
Here are the 2018 FHA loan limits for all counties in the state:
| County | 1-Family | 2-Family | 3-Family | 4-Family |
| ATLANTIC | $316,250 | $404,850 | $489,350 | $608,150 |
| BERGEN | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| BURLINGTON | $385,250 | $493,200 | $596,150 | $740,850 |
| CAMDEN | $385,250 | $493,200 | $596,150 | $740,850 |
| CAPE MAY | $414,000 | $530,000 | $640,650 | $796,150 |
| CUMBERLAND | $294,515 | $377,075 | $455,800 | $566,425 |
| ESSEX | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| GLOUCESTER | $385,250 | $493,200 | $596,150 | $740,850 |
| HUDSON | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| HUNTERDON | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| MERCER | $345,000 | $441,650 | $533,850 | $663,450 |
| MIDDLESEX | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| MONMOUTH | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| MORRIS | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| OCEAN | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| PASSAIC | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| SALEM | $385,250 | $493,200 | $596,150 | $740,850 |
| SOMERSET | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| SUSSEX | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| UNION | $679,650 | $870,225 | $1,051,875 | $1,307,175 |
| WARREN | $372,600 | $477,000 | $576,550 | $716,550 |
Going “Jumbo” for a Higher Mortgage Amount
Depending on their size, conventional home loans can either be conforming or jumbo. Here’s the difference between them:
- A conforming loan is one that meets the size restrictions used by Fannie Mae and Freddie Mac, as explained earlier. It can be sold to Fannie or Freddie via the secondary mortgage market.
- A jumbo loan is a conventional mortgage that exceeds the conforming limits shown in the first table above. It is too big to be sold to Fannie or Freddie through the secondary market.
Jumbo loans are fairly common in New Jersey, due to the relatively high home prices in some parts of the state. Many buyers use these larger “non-conforming” mortgage loans to finance home purchases in the more expensive real estate markets.
The income requirements for borrowers seeking a jumbo loan in New Jersey are typically higher, as a result of the larger amount being borrowed. But the interest rates assigned to jumbo mortgages can actually be lower than the rates for smaller conforming loans, in some cases.
This might seem counterintuitive. Why would the larger jumbo loans have lower rates, on average? According to Joel Kan, a mortgage industry economist: “A strong appetite for jumbo loans and a highly competitive jumbo market has led to increased availability and lower pricing … over the past few years.”
Have questions? This article provides an updated look at FHA, VA and conforming loan limits for all counties in New Jersey. Please contact us if you have questions about this topic, or if you’d like to find out how much you might be able to borrow.