LOAN LIMIT INCREASES FOR 2022
$647,200
Things are looking up for 2022! The Federal Housing Finance Agency (FHFA) has officially announced that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2022 will increase to
$647,200.
This is a major increase from the 2021 conforming loan limit of $548,250. In fact, it’s an
18% jump, which is a reflection of the red hot housing market.
You will also see higher loan limits for multi-family property as
well.
2022 STANDARD LOAN LIMITS
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Units
|
Max Conventional Loan Limit
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|
One
|
$647,200
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|
Two
|
$828,700
|
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Three
|
$1,001,650
|
|
Four
|
$1,244,850
|
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Federal Housing Administration (FHA)
will
also increase it’s loan limits for FHA Loans, but these new limits have yet to be announced.
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HOW DOES THIS HELP?
In short, “conforming loans” backed by Fannie Mae and Freddie Mac tend to price lower than jumbo loans, and can be easier to qualify for.
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As a result, a home buyer could purchase a home for $808,000, put 20% down, and avoid a jumbo loan.
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Sellers of higher priced homes may also benefit since more buyers can now qualify with easier conventional terms.
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And an existing homeowner looking to refinance could save some more money by slipping below the conforming limit.
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So increasing the conforming loan limit gives buyers access to easier underwriting guidelines with typically better rates,
less money down, and at a lower cost.
MOVEMENT IS A JUMBO LEADER
Keep in mind Movement Mortgage is still a leader in Jumbo Mortgages, offering some of the best Jumbo loan terms in the market,
including:
-
5% down up to $1.75M
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10% down up to $3M
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No PMI
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Refi Cash-Out up to $2M
And many of our Jumbo programs follow “conventional” underwriting guidelines, so qualifying is streamlined and easy.
THINGS ARE LOOKING UP IN 2022
If you have questions about conventional, FHA, or Jumbo loans, feel free to reach out. I'm always here to help.
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