Conforming Loan Limits Rise 18.5% for 2022

Mortgage and Lending with Finance Of America NMLS #311662

Conforming loan limits for Fannie Mae and Freddie Mac will rise to $647,200 in 2022, the Federal Housing Finance Agency said on Tuesday—a jump of nearly $100,000 from 2021’s previous record high.

FHFA said the conforming loan limit will rise in all but four U.S. counties. For most of the U.S. the 2022 limit for one-unit properties will be $647,200, an increase of $98,950 or 18.5% from 2021. While 95 percent of U.S. counties will be subject to the new baseline limit of $647,200, nearly 100 counties will have conforming loan limits approaching $1 million.

In San Diego, where I live, the new limit will be $879,750.

FHFA has raised the conforming loan limits, as prescribed under HERA, to reflect the rise in the average U.S. home price,” said Mortgage Bankers Association President & CEO Robert Broeksmit, CMB. “Over the last 18 months, housing prices have significantly increased due to record low inventory levels amidst strong demand. The higher loan limits reflect this dynamic.”

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the applicable loan limit will be higher than the baseline loan limit. The Housing and Economic Recovery Act establishes the high-cost area limit in those areas as a multiple of the area median home value while setting a “ceiling” at 150 percent of the baseline limit. Median home values generally increased in high-cost areas in 2021, which increased their limits. The new ceiling loan limit for one-unit properties will be $970,800, which is 150 percent of $647,200.

That means you can buy a $1M home in Los Angeles with 5% down and a conforming loan.

Posted by

Matt Brady

Builder Sales Manager, NMLS ID#311662

(858)342-8659 cell |844-268-1952 fax   
8885 Rio San Diego Dr │ Suite 201  San Diego, CA 92108     


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Comments (2)

George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Matt Brady I have been a Loan Originator for over 17 years and this is the biggest increase in the Conforming Loan Limits that I can remember, and it is very welcomed.

Nov 30, 2021 01:50 PM
Matt Brady

Hi George, yes this will offer people more options and solutions, which is what my job is all about.

Dec 01, 2021 07:22 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Matt loved our friend George Souto  comment and I agree with him, Endre

Dec 03, 2021 10:47 PM