The FHFA announced yesterday the 2022 conforming loan limits (CLLs) for mortgages that will be acquired by Fannie Mae and Freddie Mac. These limits verified the proposed limits as reported by a Wall Street Journal report on November 16th. In most of the U.S., the new limits will be $647,200 for one-unit properties, and limits in “high-cost” areas where 115% of the local median home value exceed the baseline conforming limit will be $970,800.
The increase in the conforming loan limit is based on the change in the average U.S. home price. According to the third quarter 2021 FHFA House Price Index® report, house prices increased on average 18.05% between the third quarters of 2020 and 2021, which is the same increase in the baseline CCL for 2022.
The new limit will provide relief for buyers, making it easier to secure loans for amounts just above the current conforming loan limits, eliminating the need to apply for a jumbo loan or find a home under the limit.
The new conforming loan limits will go into effect on January 1, 2022.
The new loan limits are available now at NASB. If you would like to find out more about securing a conventional mortgage loan, click here or give one of the experts at NASB a call at 855-465-0753.