Still not officially announced, the Federal Housing Finance Agency (FHFA) is expected to raise conforming loan limits for Fannie Mae and Freddie Mac for the 5th consecutive year for 2022. And the expected increase is anticipated to be the largest in 50 years! Currently the baseline loan limit for single family homes in most markets is $548,250. Due to increased home values, that number is expected to rise more than $75,000, to a record $625,000. This record jump will allow for more homebuyers to apply for conforming loans, versus “jumbo loans”, which typically carry higher interest rates and are more challenging to qualify for.
Also expected to make a record jump, are the loan limits for “high-cost” areas. Fannie Mae and Freddie Mac are allowed to purchase bigger mortgages in these areas up to a ceiling of 150% above the baseline conforming loan limit. Currently the high-cost loan limit is $822,375 in those areas. However, with the baseline conforming loan limit expecting to increase to $625,000 in 2022, the high-cost loan limit is anticipated to be $937,500. Although the official announcement by FHFA won’t be available until November, many lenders are currently offering conforming loans up to $625,000. Please reach out to your Advisors Mortgage Loan Officer to discuss all options.


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