Conforming Loan Limits Increased for 2022

January 7, 2022

The Federal Housing Finance Agency (FHFA) is responsible for reviewing average home prices in the US and then adjusting conforming loan limits if appropriate. Last year, home prices continued to rise. This prompted the FHFA to increase the conforming limits for 2022. A conforming loan is any loan which “conforms” to Fannie Mae and Freddie Mac guidelines.

Why is this important? Because underwriting guidelines for conforming loans are much more flexible than for jumbo loans (loan amounts over conforming limits). Higher conforming loan limits mean more people can qualify for a home who couldn’t under stricter jumbo guidelines.

2021 and 2022 conforming loan limits for one unit properties (single-family homes and condominiums) as well as 2-4 unit properties are shown below. There are two types of conforming loans: traditional conforming and high balance conforming. Both are shown below. These limits are in effect now!

You can find more information about conforming loans and conforming loan limits, here.

Conforming Loan Limits

Pre-approval Process Explained

Clients starting their search for a property? Are they having trouble navigating the pre-approval process? Check my website for a detailed description of how the pre-approval process works.

My site goes through each step in detail with flowcharts illustrating the process. They’ll know exactly what they need to do, and when, to be in a position to write an offer. When their offer is accepted, they can refer to my site for a complete explanation of the process of underwriting and approval.