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New conforming loan limits 2022

​​Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the conforming loan limits (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2022. In most of the U.S., the 2022 CLL for one-unit properties will be $647,200, an increase of $98,950 from $548,250 in 2022

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Loan limits for most mortgages are increasing in 2022. An announcement from the Federal Housing Finance Agency (FHFA) in recent days has confirmed the maximum loan amounts for mortgages across the country in the coming year.

We’ll go over what the new limits are and what this means for home buyers or those looking to refinance.

Understanding The Loan Limit Changes

There are three types of loans impacted by changes to mortgage limits that are either in effect now or will be at the beginning of 2022. Let’s run through them.

Conventional Loan Limits

Baseline conventional loan limits (also known as conforming loan limits) for 2022 increased 18.05%, rising $98,950 to $647,200 for 1-unit properties. Limits were also generally higher in high-cost areas, defined as those in which 115% of the local median home value is higher than the baseline conforming loan limit.

In high-cost areas, limits are set on a county-by-county basis The absolute highest amount that can be paid for a 1-unit property in high-cost areas is $970,800, which represents 150% of the national baseline limit. This high-cost ceiling is also the loan limit for all conventional loans in Alaska and Hawaii.

A home with up to 4 units is considered a single-family property and is available under standard mortgage financing programs. The limits are higher depending on the number of units you’re buying. See the table below.

 

Conventional Loan Limits
Number of Units Continental U.S. Alaska and Hawaii
1 $647,200 $970,800
2 $828,700 $1,243,050
3 $1,001,650 $1,502,475
4 $1,244,850 $1,803,000

These limits apply immediately to loans backed by the government-sponsored enterprises Fannie Mae and Freddie Mac. Rocket Mortgage® clients don’t need to wait for 2022.

 

If you’re looking to find the limits in your area, the Department of Housing and Urban Development has a mortgage limits search engine. Although ostensibly for FHA mortgage limits, you can select “Fannie/Freddie” under limit type. To see the limits for next year, be sure to also select “CY2022” for the limit year.

VA Loan Limits

Under normal circumstances, VA loans don’t have loan limits. In the event that you default on the loan, the VA insures the same percentage of the mortgage for lenders regardless of the loan amount.

 

However, there are a couple of instances where VA loan limits do come into play. Where that’s the case, the limits listed above apply.

 

You might have a loan limit if you have what’s called impacted entitlement. In this case, part of your veteran benefit from the VA is shown as used up. You may have this if you have a VA loan that hasn’t been fully paid back or if you had a foreclosure that you haven’t paid the VA back for, for example.

If lenders think that a loan is large enough that it presents a slightly higher risk, they may also have different qualification requirements. While there’s no specific loan amount at which these VA jumbo loans start, many lenders including Rocket Mortgage use anything above conforming loan limits in the area as a guide. At Rocket Mortgage, you can get a VA jumbo loan for up to $2 million if you qualify.

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