Loan Limits for 2022 Increase 18%!
The Federal Housing Finance Agency (FHFA) has officially announced the conforming loan limits for 2022. Homebuyers will now be able to get a conventional mortgage to purchase a one-unit home for up to $647,200! This is an increase of $98,950 from $548,250 in 2021, making this the largest-ever annual increase for loans eligible to be purchased by Fannie Mae and Freddie Mac.
What Does This Mean?
Typically, a loan this size would require a jumbo mortgage product. Jumbo loans involve more strict credit requirements as well as bigger down payments. With this increase in loan limits, more borrowers can take advantage of the benefits of a conventional home loan. Some of these benefits include:
- Low down payment options
- Less strict credit score requirements
- Flexibility to choose between a fixed-rate or adjustable-rate mortgage
- The opportunity to avoid mortgage insurance by putting down 20%
If a new home is in store for you this next year, connect with a Cambria Mortgage professional to talk more in-depth about your options today: 952-942-0110 / CambriaMortgage.com. We look forward to assisting you!