New Conforming Loan Limit for 2022

Each year, the FHFA announces new limits for conforming loans. These are loans that are backed by Freddie Mac and Fannie Mae. Because of this backing, conforming loans have more lenient qualifications and better pricing compared to jumbo loans. The limits for conforming loans are driven by the housing market. Because housing prices have been rising rapidly in most areas of the country, the FHFA has responded by dramatically increasing the loan limits for one-to-four-family residential properties.

For single-family homes in 2022, the limit is now $647,200 in most areas. In 2021, the limit was $548,250, so this reflects an 18 percent increase. For two-family homes, the limit is now $828,700. For three and four-unit properties, the limits are $1,001,650 and $1,244,850, respectively.

In high-cost areas like the U.S. Virgin Islands, Guam, Alaska and Hawaii, the limit for a single-family home has risen from $822,374 to $970,800 for 2022. For two to four-unit housing, the 2022 limits range from $1,243,050 to $1,867,275. Other high-cost areas include San Francisco, Jackson Hole, Los Angeles and others. This means that you may be able to avoid the downsides of a jumbo loan when buying properties throughout the country.

Some mortgage lenders were offering conforming loans above the 2021 loan limit for the last few months with the anticipation that the limit would be raised substantially. However, because they did not have firm facts from the FHFA, they may have had other compensating factors in place. They also did not have the FHFA’s actual loan limit. Now that the information has been published by the FHFA, however, all sources are providing the same loan terms and rates.

Are you interested in learning more about conforming loans or jumbo loans? To get a quote for a purchase or refinance loan, connect with a MortgageDepot loan originator today.

Contact one of our loan consultants to learn more.