FHA loans make homeownership accessible with low down payments and flexible credit requirements. AI REMCO L.L.C. helps first-time buyers and those rebuilding credit reach their goals.
Lower minimum investment
FHA sets your minimum investment by credit score: 580 or higher qualifies for FHA's lowest minimum, and 500 to 579 requires a larger one. Gift funds from family and other approved sources can count toward it.
Flexible credit
FHA accepts credit profiles that many conventional programs will not. FHA sets the minimums; a lender can require more.
Same insurance cost at any score
FHA mortgage insurance is priced by loan amount and down payment, not credit score. Compare the full cost with conventional before choosing.
Seller contributions
Sellers and other interested parties may contribute up to 6% of the sales price toward closing costs, prepaids and discount points. They cannot pay your minimum investment.
What is an FHA loan?
FHA loans are insured by the Federal Housing Administration, part of HUD, and funded by approved lenders. Compare the total cost and eligibility requirements with conventional options; FHA is not always the least expensive choice.
Created in 1934 to make homeownership accessible, FHA remains one of the most popular programs for first-time buyers and anyone with limited savings or imperfect credit.
FHA-insured financing is offered through private lenders. Ai Remco is a mortgage broker, not HUD, the FHA or a government agency.
How to apply for an FHA loan in New Jersey
FHA loans are made by FHA-approved lenders, not by HUD. As a broker, Ai Remco takes your application, compares FHA with your other options, and submits the file to the lender. The usual order: talk through your scenario, apply and authorize a credit check, send the documents the lender lists, then get pre-approved before you make an offer. After you are under contract the lender orders the FHA appraisal, underwrites the file and issues conditions; you close when the conditions are cleared. Approval and timing are the lender's decisions.
What documents FHA asks for
FHA's own rules (HUD Handbook 4000.1) require a valid Social Security number for each borrower; proof of eligible residency (U.S. citizen, lawful permanent resident or certain Freely Associated States citizens; non-permanent residents became ineligible in 2025); two years of employment and income history, usually shown with a recent pay stub and W-2s or a written verification; a recent bank statement or verification of deposit, with large deposits explained; and a gift letter and transfer records if family is helping. Lenders often ask for more, such as additional statements or tax transcripts. Those are lender requirements, not FHA's.
Down payment versus closing costs
They are separate. The down payment is your minimum investment, which FHA sets by credit score. It can come from your savings or an acceptable gift, but not from the seller, the agents or anyone else who benefits from the sale. Closing costs (lender, title, recording, prepaid taxes and insurance) are paid on top of it. A seller can contribute up to 6% of the price toward those costs, and a lender credit from choosing a higher rate can cover some as well. Down payment assistance can also help eligible New Jersey buyers.
FHA mortgage insurance
Every FHA loan has an upfront mortgage insurance premium, usually financed into the loan, plus an annual premium collected monthly. HUD sets both by loan amount, term and down payment; the annual premiums in effect today have applied since March 20, 2023 (HUD Mortgagee Letter 2023-05). Depending on your down payment, the annual premium either ends after 11 years or lasts for the life of the loan. Unlike conventional mortgage insurance, it cannot be removed on request; refinancing is the usual way out of it. Your Loan Estimate shows the exact premiums.
2026 FHA loan limits in New Jersey
HUD sets FHA limits by county each year. For 2026, a one-unit home's limit is $1,249,125 in 12 North and Central Jersey counties (Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union); $730,250 in Atlantic, Cape May; $630,200 in Burlington, Camden, Gloucester, Salem; $541,287 in Cumberland, Mercer, Warren. Limits are higher for two- to four-unit homes. Pennsylvania and Florida limits vary by county as well; we confirm the limit for the property's county before you shop.
FHA or conventional?
Neither is always cheaper. Some conventional programs for first-time and lower-income buyers allow a smaller down payment than FHA, and conventional private mortgage insurance can be removed on request at 80% of the original value and ends automatically at 78%. FHA's mortgage insurance costs the same at any credit score, which often makes FHA the better fit for lower scores or a small down payment, while borrowers with strong credit and a larger down payment often pay less with conventional. FHA appraisals also apply HUD's property standards, which can add repair conditions on older homes. We price both for your situation.
FHA requirements & who benefits
2026 FHA one-unit limits, New Jersey
- $1,249,125: Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union
- $730,250: Atlantic, Cape May
- $630,200: Burlington, Camden, Gloucester, Salem
- $541,287: Cumberland, Mercer, Warren
FHA minimums (HUD Handbook 4000.1)
- Credit score 580 or higher: FHA's lowest minimum investment
- Credit score 500 to 579: a larger minimum investment
- Below 500: not eligible for FHA
- With more than one borrower, the lowest qualifying score is used
- At least one borrower moves in within 60 days and lives there at least one year
- One- to four-unit homes; the appraisal checks HUD's minimum property standards
- Lenders can set higher minimums than FHA's
Basic requirements
- A minimum credit score set by FHA and by the lender; a lower score may still qualify with a larger down payment
- Typically a 2-year steady employment history
- Property must be your primary residence
- Property must meet FHA minimum standards
- Debt-to-income requirements depend on the lender and underwriting findings
- Mortgage insurance premium (MIP) required
Who benefits from FHA
- First-time buyers with limited savings
- Buyers rebuilding credit after bankruptcy or foreclosure
- Borrowers with higher debt-to-income ratios
- Buyers using gift funds for the down payment
- Homeowners refinancing with FHA Streamline
Questions, answered
New Jersey counties where borrowers use this program
AI REMCO L.L.C. is a licensed New Jersey mortgage broker serving borrowers throughout the state. These county pages explain how this program fits local property types, price ranges and municipalities.
- Warren County, NJ
Useful on older river-town housing and for buyers with a shorter credit history or a smaller down payment.
- Hunterdon County, NJ
An option in Flemington, High Bridge and other in-town markets.
- Morris County, NJ
Used in Dover, Wharton, Netcong and other more affordable parts of the county.
- Somerset County, NJ
A lower-down-payment route in the county's borough markets.
- Sussex County, NJ
Helpful on older lake-area housing and for smaller down payments.
- Essex County, NJ
Heavily used across Newark, Irvington, East Orange and Bloomfield, including owner-occupied multi-unit purchases.
- Union County, NJ
Heavily used in Elizabeth, Roselle, Linden and Plainfield, including owner-occupied multi-unit purchases.
- Bergen County, NJ
Useful in Hackensack, Bergenfield, Lodi and Garfield-area purchases.
- Middlesex County, NJ
Widely used in Perth Amboy, Carteret, New Brunswick and Sayreville purchases.
- Monmouth County, NJ
Widely used in Long Branch, Neptune, Keansburg and the bayshore towns.
- Ocean County, NJ
Widely used across the county's year-round markets and in Lakewood.
- Hudson County, NJ
Used in Bayonne, Union City, West New York and North Bergen, including owner-occupied multi-unit purchases.
- Passaic County, NJ
Heavily used in Paterson, Passaic City and Clifton, including owner-occupied multi-unit purchases.
- Mercer County, NJ
Practical in Trenton, Ewing and Hightstown.
- Burlington County, NJ
Common in Willingboro, Pemberton and Burlington City-area purchases.
- Camden County, NJ
Widely used across Camden City, Pennsauken, Gloucester Township and the older river towns.
- Gloucester County, NJ
Practical in Woodbury, Deptford and Williamstown.
- Atlantic County, NJ
Common in Pleasantville, Egg Harbor Township and Absecon.
- Cumberland County, NJ
Low down payment and flexible credit for Vineland, Millville and Bridgeton.
- Salem County, NJ
A flexible option in Pennsville, Carneys Point and Salem City.
Every county we serve is on our New Jersey page.
Ready to apply for an FHA loan?
Get a personalized FHA estimate, or talk to a licensed loan officer serving NJ, PA, and FL.
Source: HUD: FHA Mortgage Limits lookup (2026 county limits) · HUD Handbook 4000.1 (FHA single-family policy) · HUD Mortgagee Letter 2023-05 (annual MIP rates) · HUD Mortgagee Letter 2025-23 (2026 FHA limits) · FHFA: 2026 conforming loan limits · CFPB: FHA loans · CFPB: removing private mortgage insurance · Fannie Mae: 97% LTV options