Home Loan Limits Getting Raised
Borrowing limits for conforming mortgage loans to rise in 2022. The last few years have seen substantial home value increases. One of the largest benefits of these higher home values are the higher prices push up loan limits.
The Federal Housing Finance Agency (FHFA), a government agency that regulates Fannie Mae and Freddie Mac, has announced the raising of lending limits on conventional mortgages.
What does this mean for potential homeowners?
In 2022, conventional mortgage borrowers will be able to borrow up to $647,200 with a 3% down payment or up to $582,481 with a 10% down payment. This is great news for potential homebuyers who are looking in higher-priced markets like California where houses can cost well over half a million dollars! High costs markets get a loan limit of $970,800!
This increase in conventional loan limits is also great news for FHA borrowers who will be able to purchase an additional $65,000 of home value with a mortgage backed by Federal Housing Administration. These new higher limits give potential first time home buyers access to a wider range of homes.
To check new loan limit by county you can do so here.