You may have had difficulty purchasing a home due to skyrocketing home values in the past 18 months. But help could be coming your way in 2022.

Historic increase

Last week, the Federal Housing Finance Agency announced the baseline conforming loan limit for single-family homes in 2022 would be $647,200, an increase of 18 percent from this year’s $548,250. It’s the largest-ever annual increase in loans bought by Fannie Mae and Freddie Mac. The new limits will go into effect on January 1, 2022.

Over the past six years, the baseline loan limit has risen a total of $230,200. From 2021 to 2022 alone, the limit has risen $98,950. According to the FHFA, which oversees Fannie Mae and Freddie Mac, the increase for 2022 was based on the House Price Index for the third quarter of 2021.

How homebuyers will benefit

The new increased loan limits will benefit all homebuyers, especially if you’re a first-timer or a borrower who wants to qualify for a larger loan amount you previously couldn’t get.

Currently, if you want to borrow more than $548,250 you must get a jumbo mortgage, which can be tough to qualify for, and the rates are often higher than those for conforming mortgages backed by Fannie Mae or Freddie Mac.

But the higher loan limits coming in 2022 mean fewer borrowers will have to use jumbo loans. That could open pricier housing markets to some buyers – like you.

New loan limits for 2022

Using the new loan limits in 2022, those using conventional mortgage loans can borrow up to $647,200 on a single-family home. That means you could buy a $719,000 house with 10 percent down ($71,900) or a $681,000 house with 5 percent down ($34,050).

For FHA loans, you can borrow up to $420,680 for a single-family residence. That means you can buy a $436,000 house with 3.5 percent down ($15,260).

Since the coronavirus recession began in Spring 2021, the housing market has been blazing, characterized by tight inventories, strong buyer demand, and record-low mortgage rates. The result has been an 18.5 percent increase in home prices from the third quarter of 2020 to 2021. That’s the fastest appreciation ever.

For more information on how to help your clients take advantage of these new increased loans limit, contact a member of our loan team.


FHFA: Government to back mortgages up to $970,800 in 2022. HousingWire. (2021, December 1). Retrieved December 7, 2021, from

Ostrowski, J. (n.d.). As home values rise, conforming loan limits to jump a record 18% for 2022. Bankrate. Retrieved December 7, 2021, from

FHA announces new single-family loan limits for 2021: / U.S. Department of Housing and Urban Development (HUD). FHA Announces New Single-Family Loan Limits for 2021 | / U.S. Department of Housing and Urban Development (HUD). (n.d.). Retrieved December 7, 2021, from