March 31st, 2022 12:46 PM by Salim (Sam) Kader MLO# 130505
New 2022 conventional loan limits
A side impact of increasing real estate prices is that they mean higher loan limits for conforming mortgages. Therefore, borrowers can avoid needing a jumbo loan to buy property - which often has stricker guidelines, larger down payment requirements and sometimes higher interest rates.
Every year, the Federal Housing Finance Agency (FHFA) which oversees Fannie Mae and Freddie Mac is required by the Housing and Economic Recovery Act to adjust the loan limits according to changes in home prices. In most counties across the country, there are 3 categories of loan types (based on the LOAN AMOUNT not PURCHASE PRICE)
Conforming Loan Amount up to $647,200 for regular detached Single Family Residence/Condo. See below for up to 4-Units Complex.
We can assist with as little as 3.5% down payment. * Down payment less than 20% will require Private Mortgage Insurance (PMI).
High Balance Confirming up to $970,800 for regular detached Single Family Residence/Condo (in King County – it’s $891,250) and up to $1,243,050 for two-unit high-balance loans (in King County – it’s $1,140,950). For your specific counties – please visit FHFA map here https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-Limits-Map.aspx. The FHFA considers markets as high-cost (or high-balance) areas when 115% of the local median home value exceeds the standard conforming loan limit.
We can assist with as little as 5% down payment. * Down payment less than 20% will require Private Mortgage Insurance (PMI).
Does this apply to FHA/VA/USDA loans?
As announced by HUD, you can check the FHA County Loan Limits here to determine your county's limit. VA is a bit different depending on how much entitlement you have (read more on the VA site).
For specific County and State – please click Federal Housing Finance Agency here.