When buying a home with a mortgage loan in Bergen County, it’s important to understand the various loan limits and how they might apply to you as a borrower. Here is an up-to-date explanation of Bergen County loan limits for FHA and conventional conforming home loans.

Bergen County Loan Limits in 2017 and 2018

Some mortgage programs limit the size of the loan that can be acquired or insured. These maximum amounts are aptly referred to as “loan limits.” They tend to vary by county, because they are based on home values that also vary by location.

Here are the current (2017) FHA and conforming loan limits for Bergen County:

• Conforming: For 2017, the loan limits for conforming (conventional) home loans were set. For a single-family home purchase in Bergen County, the conventional loan limits is $636,150 — the same as FHA. In other parts of New Jersey, the conforming limits are sometimes set lower at $424,100, as a result of lower home values.

• FHA: The limits for Federal Housing Administration (FHA) loans within the state of New Jersey range from $275,665 to $636,150. Since it’s located in one of the more expensive parts of the state, the Bergen County FHA loan limit is at the top of the scale, at $636,150. That’s for a single-family home purchase. Higher limits apply to multifamily purchases such as duplexes and triplexes.

The FHA and conforming loan limits aren’t always the same. In some counties across the state, they differ. But in Bergen County, both of the limits (FHA and conforming) are currently the same – at least for 2017. This could change next year, since the maximum loan amounts are updated annually.

Going “Jumbo” for a Bigger Mortgage

There is financing available for those seeking loans that exceed the limits mentioned above. This is what’s known as a “jumbo” mortgage loan, which means the amount being borrowed exceeds the applicable loan limit for Bergen County.

Additionally, we could see higher loan limits for Bergen County in 2018. The Federal Housing Finance Agency reviews these limits every year, in relation to home prices and appreciation across the U.S. Some years, when home values within a particular county rise considerably, the loan limit for that particular county gets increased as well.

According to the real estate information company Zillow, the median home value for Bergen County, New Jersey rose by around 4% over the last 12 months (Sept. 2016 to Sept. 2017). Additional gains are expected over the coming months. This doesn’t automatically mean that the loan limits for Bergen County will increase in 2018 – but it’s a possibility.

From 2016 to 2017, the state of New Jersey was a mixed bag in terms of loan limit increases. They rose for some areas, while remaining the same in other counties. In Bergen County, for example, the FHA loan limit for a single-family purchase rose from $625,000 in 2016, to $636,150 in 2017.

It’s too soon to tell if federal housing officials will increase the Bergen County loan limits for 2018. We will know more at the end of November or December. That’s typically when federal regulators announce any revisions to loan limits for the following year.

But for now, they are set at $636,150 for a single-family property. Anything above that is considered a jumbo mortgage loan.

Find out how much you can borrow: We can review your financial situation to determine how much of a mortgage loan you might be able to borrow. This can help you narrow your home search to the kinds of properties you can afford. Please contact us if you would like to be pre-approved for a mortgage loan in New Jersey.