Home Loan Limits Increasing 

 December 14, 2021

By  Benjamin Borden

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

The New Loan Limits for 2022

  • FHA’s 2022 minimum national loan limit “floor” is set at $420,680. FHA to set its maximum loan limit “ceiling” for high-cost areas at $970,800. The FHA-insured Reverse Mortgage or HECM maximum claim amount will increase to $970,800 from $822,375 for calendar year 2022. 
  •  Fannie Mae and Freddie Mac loan limits will increase to $647,200 in 2022. This is up from   $548,250 and up from $510,400 in 2020!
  • If your in a high cost housing market the conventional limit will go to $970,799 up from $822,375.

About the author

Benjamin Borden

Ben Borden is a visionary with over 30 years of real-world experience in the financial industry as a financial advisor at ANNUVA Financial and mortgage loan officer/branch manager with NEXA Mortgage throughout the Southeast. Ben has a strict focus on retirement income and strategies, he is committed to increasing an individual's and a retirees' income, assets, and overall economic well-being.

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