Feds to Increase Mortgage Loan Limits in 2022

  • Heather Smith
  • 01/4/22

Home prices have been rising dramatically; according to the Federal Housing Finance Agency (FHFA) House Price Index Report. Between Q3 2020 and Q3 2021, home prices increased, on average, a whopping 18.05 percent.

For many home buyers, higher home prices means needing access to higher mortgages—and the FHFA is taking action to ensure those buyers get the mortgages they need to successfully purchase property.

The FHFA recently announced that conforming loan limits for Freddie Mac and Fannie Mae-backed mortgages will increase in 2022. In 2021, the limit for a conforming loan was $548,250; in 2022, the limit will be $647,200—an increase of $98,950. Conforming loan limits for high-cost areas, like San Francisco and New York, will also increase based on median home values in the area, capping out at $970,800 (150 percent of $647,200).

The Takeaway:

So, what does this mean for you? If you’ve been struggling to find a traditional loan to cover the cost of a home, these increasing limits could help you get the financing you need at a competitive rate—and make 2022 the year you finally get to buy your dream home.

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For most families, choosing a new home is the biggest financial decision they will ever make. There are many complicated decisions involved in choosing a home. As one of the top real estate professionals in the local market, I'll negotiate the best prices and terms for you and answer all of your questions as they arise.

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