2022 Conforming Loan Limits - Realtor & Attorney Talking Points

Mortgage and Lending with CMG Mortgage, San Diego, CA NMLS 259027

Fannie Mae & Freddie Mac have recently announced their new Conforming and High Balance Conforming Loan Limits for 2022.  If you are a Realtor, Financial Planner and/or Attorney, do you know how to articulate this great news to your Clients?  Here are a few talking points:

  • In most counties across the country, there are 3 categories of loan types (based on the LOAN AMOUNT)
    • Conforming
    • High Balance Conforming 
    • Non-Conforming (Jumbo)
  • The loan amounts have increased on each category as follows:
    • Conforming was $548,250, increasing to $647,200 in 2021
    • High Balance Conforming limits vary significantly depending on county (see below for a few examples)
    • Non-Conforming (Jumbo) limits vary depending on county as well (as shown below)
  • Examples of New High Balance Conforming Loan Limits by County
    • San Diego was $753,250, increasing to $879,750 in 2022
    • Orange County was $822,375, increasing to $970,800 in 2022
    • Los Angeles was $822,375, increasing to $970,800 in 2022
    • Riverside County was $548,250, increasing to $647,200 in 2022

2020 Mortgage Conforming Loan Limits - www.GordonMortgage.com

Locate your county by CLICKING HERE to access an interactive map of the 2022 Conforming Loan Limits across the Country.

NOTE: Loan Amounts in excess of High Balance Conforming Loan Limts are considered "Non-Conforming" (aka "Jumbo")

Borrower Benefits for New 2022 Mortgage Conforming Loan Limits:

  • Typically, "Conforming" loan amounts offer the most attractive pricing (combination of interest rate and acquisition costs)
    • With a higher Conforming limit, there are more Borrowers who qualify for the most attractive pricing options
  • Non-Conforming (Jumbo) loans often have a maximum of 43% Debt-to-Income (DTI) Ratio (where Conforming & High Balance Conforming can sometimes go as high as 50% DTI)
    • With a higher Conforming limit, there are more Borrowers who can push to higher DTI Ratios (when applicable and desired)
  • Non-Conforming (Jumbo) loans often have "cash reserve" (aka "post closing liquidity") requirements to show additional assets after all Funds-to-Close have been brought in to buy the home (or "verified assets" for refinances). 
    • In some cases, Borrowers are declined due to lack of assets on Non-Conforming (Jumbo) loans
    • With a higher Conforming limit, there are more Borrowers who can reach higher loan amounts without having extra assets

Additional benefits exist, but suffice to say, the new 2022 Conforming Loan Limits are great news to all Borrowers, Home Buyers, Attorneys, and Real Estate Agents. 

Divorcing Homeowners may benefit from these changes!

Divorcing Homeowners seeking Equity Buyouts (whereby one spouse retains the marital home and "buys out" the departing spouse) may also benefit from these 2022 Conforming Loan Limit increases as equity and/or cash-out restrictions may now allow for larger buyouts.  CLICK HERE to learn a few valuable mortgage tips for Divorcing Home Buyers & Homeowners.

Feel free to contact me for details and/or scenarios.

Comments (7)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello  and thanks for the great information for us here in the Rain.  Make it a super day!


Dec 14, 2021 11:49 AM
Jason E. Gordon

Thank you Will Hamm!

Dec 16, 2021 10:41 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jason E. Gordon I have been a Loan Originator for over 17 years, and this is the highest increase in the conventional loan limits I have seen during that time.

Dec 14, 2021 03:52 PM
Jason E. Gordon

Very true George Souto, I don't think either of us have ever seen such a significant jump in a 1 year period!

Dec 16, 2021 10:40 AM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH

Thanks for sharing Jason!

This information is very useful whether you are a lender or a Realtor

Dec 15, 2021 04:01 AM
Jason E. Gordon

Absolutely Sham Reddy CRS (these limits help us all)!

Dec 16, 2021 10:39 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Great information and education. Those are impressive new limits in our area.

Dec 15, 2021 09:14 AM
Jason E. Gordon

My pleasure Jeff Dowler, CRS 

These limit increases are significantly higher than they've ever been!

Dec 16, 2021 10:39 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Thank you so much for this information, and the link to our county data. I appreciate it!

Dec 16, 2021 04:55 AM
Jason E. Gordon

Truly my pleasure Kat Palmiotti!

Dec 16, 2021 10:38 AM
Matt Brady
Watermark Capital - Del Mar, CA
One of San Diego's Best Lenders

Congrats on the feature. I assume people are still getting divorced and you are doing well.

Dec 16, 2021 04:45 PM
Jason E. Gordon

Nice to hear from you Matt Brady (definitely miss working with you my friend). Hope you're well.

Dec 17, 2021 10:15 AM
John Juarez
The Medford Real Estate Team - Fremont, CA

Great information, Jason. As we head into the New Year, I hope these changes can help more people to achieve their dream of homeownership.

Dec 19, 2021 08:21 AM