On November 30th, 2021 the Federal Housing Finance Agency (FHFA) announced the new adjusted 2022 loan limits. Most of the U.S. counties will see an increase, while only four counties will remain unchanged. Loan limits did not decrease anywhere in the U.S. or its territories.
For Contiguous States, District of Columbia, and Puerto Rico the maximum conforming loan limits for 2022 are:
- 1-unit: $647,200
- 2-unit: $828,700
- 3-unit: $1,001,650
- 4-unit: $1,244,850
For Alaska, Guam, Hawaii, and the U.S. Virgin Islands the maximum conforming loan limits for 2022 are:
- 1-unit: $970,800
- 2-unit: $1,243,050
- 3-unit: $1,502,475
- 4-unit: $1,867,275
For Contiguous States, District of Columbia, and Puerto Rico the maximum high-cost area* loan limits for 2022 are:
- 1-unit: $970,800
- 2-unit: $1,243,050
- 3-unit: $1,502,475
- 4-unit: $1,867,275
*Several states (including Alaska, Hawaii, Guam, Puerto Rico, and the U.S. Virgin Islands) do not have any high-cost areas for 2022. You can view the full list of loan limits by counties here.
FHFA data shows home prices have increased by 18.5% over the past year (third-quarter of 2020 to third-quarter of 2021). This percentage is used to calculate the new maximum conforming loan limits. To calculate for high-cost areas, the conforming loan limits are increased by 150%.
The new loan limits will apply to loans delivered after the first of the year. In addition to the FHFA announcement, you can also view the Freddie Mac announcement and the Fannie Mae matrix.
Regarding government entities, VA generally aligns their loan limits with the FHFA loan limits, while FHA loan limits are calculated differently. FHA’s conforming loan limits are typically set at 65% of the FHFA’s conforming loan limits while the high-cost areas are set at 150% of FHFA’s conforming loan limits. FHA also announced the new floor and ceiling loan limits on November 30th. The new loan limits are effective for case numbers assigned on or after January 1st, 2022. The VA should be making their official announcement by mid-December. You can find updates on their website.
If interested in viewing the historical loan limits chart and exploring the history of how loan limits were developed, head to the Conforming Loan web page. If you are a current Mortech admin, and are looking for more information on how this impacts your business, contact your Customer Success Manager.