New Conforming Loan Limits May Help More Homebuyers Purchase in Tough Markets

On November 30th, 2021, the Federal Housing Finance Agency (FHFA) made its official announcement of the new conforming loan limits for 2022 on loans funded by Fannie Mae and Freddie Mac.

This means qualified homebuyers can apply for a conforming loan with a baseline of $647,200 and $970,800 for loans in high-cost areas.  Due to the current market conditions and rapidly increasing home purchase prices, many customers are now needing to secure a jumbo loan to purchase a home that may have qualified for conforming loan financing a few months ago.

However, with this new conforming loan limit increase, lenders can now offer customers a conforming loan option at a potentially lower rate.

This announcement impacts many customers who previously were not eligible to apply for a jumbo loan due to loan requirements. This increase will make it possible for more homebuyers to take advantage of a conforming loan while rates are still historically low.

To learn more about this industry update, visit www.fhfa.gov.