2022 Conventional Loan Limits Announced

Real Estate Agent with Melody Russell Team at eXp Realty of California, Inc. 01468388

Reblogging with gratitude to lender John Meussner out of Fair Oaks, California.

These higher loan limits are mind boggling, but they relate quite well to the market.   While the new limits do give more flexibility for the low money down buyer, around the Santa Cruz CA area they are competing with a  lot of  large down payment buyers.

Original content by John Meussner NMLS #138061 MMCD #1141

They're here!  Every year around this time the Federal Finance Housing Authority (FHFA) announces loan limits for the next calendar year.  These limits are adjusted based off of year over year home appreciation metrics usually noted by 3rd quarter results from appreciation reports.


For 2022, loan limits have followed home prices in increasing by a large margin!  The base conforming loan limit has increased by nearly $100,000 to $647,200 nationwide.  In high cost areas, loan limits have increased to a staggering $970,800.  Yes, this means that nearly $1 million can be borrowed under conventional loan guidelines (aka, 5% down payment!).  Loan limits are even higher for multi-unit homes, and will vary from county to county based on local home value median figures.

Loans can begin to be processed under these new loan limits immediately, although loans in the new limit ranges may need an extra few days logistically as lenders reprogram their pricing and locking engines, and lenders establish guidance to process loans with automated underwriting "declines" (the systems at Fannie Mae & Freddie Mac often lag in issuing approvals for the new loan limits by a couple weeks).

While this is largely good news, especially for those struggling to compete with limited down payment funds in higher priced markets, such a large increase (and the fact that government sponsored agencies are now on the hook for what just a couple of years ago would have been loan amounts well into jumbo loan territory - where perfect credit and a 15-20% down payment is generally required) does raise eyebrows and come with some negative impacts.  With more financing flexibility, home prices are given room to climb even higher (5% down allows for conventional financing on a home purchase of $680K+), which could increase buyer competition in homes around these price ranges.

HUD typically follows shortly behind FHFA so we should anticipate updated FHA loan limits to be announced in the coming weeks, and an increase to FHA limits would be even more helpful to entry level buyers competing in markets where home prices have outpaced FHA loan allowances.

Want to know what loan limits are for your county?  How does this impact your buyers?  Feel free to ask an expert here, or check out the attached graphic which shows loan amount maximums by county, indicated by the various colors shading each county in the US.

John Meussner

NMLS# 138061

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Comments (3)

John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, MD, MT, NC, NJ, NV, OK, OR, PA, SC, TN, TX, UT, VA, WV - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Thanks for sharing!  I was just down in Santa Cruz a week ago, and yes, these new loan limits will help those entering the market down there where home prices have appreciated so much : )

Nov 30, 2021 04:35 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello M.C. Dwyer thank you for the update on the conventional loan limits for 2022.

Nov 30, 2021 05:32 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Good news for buyers for sure. The down payments at 5% are as you say tough to compete with multiple buyer situations even if the buyers loan is approved. 

Nov 30, 2021 06:04 PM