On November 30, 2021 the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2022.
The maximum loan limit for one-unit properties will be $647,200, an increase from $548,250 in 2021. Release.
The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). They require that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.
FHFA third quarter 2021 House Price Index (HPI) reported that house prices increased 18.05%, on average, between the third quarters of 2020 and 2021. The baseline maximum conforming loan limit in 2022 will increase by the same percentage.
For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit.
A list of the 2022 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here.
Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.