FHFA Boosts Conforming Loan Limits for 2022

Housing Finance
Contact: Curtis Milton
Director, Single Family Finance
(202) 266-8597

The Federal Housing Finance Agency (FHFA) today announced that the maximum baseline conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2022 will rise to $647,200 — an increase of $98,950 from $548,250 in 2021.

The conforming loan limits are required by the Housing and Economic Recovery Act (HERA) to reflect the percentage change in the average U.S. home price during the most recent 12-month or 4-quarter period ending before the time of determining the annual adjustment.

In 2022, the conforming loan limit will rise 18.05% because FHFA has determined that the average U.S. home value increased by that amount between the third quarters of 2020 and 2021.

Higher loan limits will be in effect in higher-cost areas as well. The new ceiling loan limit in high-cost markets will be $970,800. The previous ceiling was $822,375.

“These increases are an important step to ensure that government-backed mortgages keep pace with the sharp rise in home prices over the past year,” said NAHB Chief Economist Robert Dietz. “Supply-side challenges — including building material bottlenecks and lot and labor shortages — will continue to place upward pressure on construction costs and home prices in 2022.”

A list of the 2022 maximum conforming loan limits for all counties and county-equivalent areas in the country may be found under resources.

In its news release, FHFA said that due to rising home values, the ceiling loan limits will be higher in all but four U.S. counties or county equivalents in 2022.

For additional information, contact Curtis Milton at 800-368-5242 x8597.

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