New Loan Limit for 2022
FHFA recently announced the new conforming loan limits for 2022. Homebuyers will now be able to get a conventional mortgage to purchase a one-unit home for up to $647,200! This is an increase of $98,950 from $548,250 in 2021, making this the largest-ever annual increase for loans eligible to be purchased by Fannie Mae and Freddie Mac.
Typically, a loan this large would require a jumbo mortgage product. A jumbo loan involves stricter credit requirements than conventional mortgages. It usually requires larger down payments too. With this increase in loan limits, more borrowers can take advantage of the benefits of a conventional home loan. Some of these benefits include:
- Low down payment options
- Less strict credit score requirements
- Flexibility to choose between a fixed-rate or adjustable-rate mortgage
- The opportunity to avoid mortgage insurance by putting down 20%
Loan Limits By Unit Size
Standard loan limits for 2022, which apply in most of the United States, are as follows:
1–unit homes: $647,200
2–unit homes: $828,700
3–unit homes: $1,001,650
4–unit homes: $1,244,850
Keep in mind that these are only the ‘baseline’ limits. In areas with high–cost real estate, buyers get significantly higher conventional mortgage limits.
Maximum conforming loan limits
High–balance conforming loan limits vary by county. They can fall within the following ranges:
1–unit homes: $647,201–$970,799
2–unit homes: $828,701–$1,243,049
3–unit homes: $1,001,651–$1,502,474
4–unit homes: $1,244,851–$1,867,274
Areas such as Alameda County, California; Arlington, Virginia; and Jackson, Wyoming enjoy the maximum conforming loan limits, while cities like Seattle, Washington and Baltimore, Maryland fall between the “floor” and the “ceiling.”In Alaska, Hawaii, Guam, and the U.S. Virgin Islands – which follow their own loan limit rules – the maximum loan limit for 2022 is $970,799 for a one–unit property.
If you are looking to take advantage of these new loan limits in 2022 or any other program a Lend Smart Loan Officer would be happy to help.