The Federal Housing Agency has increased the maximum conforming loan limit for mortgages eligible to be purchased by Fannie Mae and Freddie Mac. For 2022, the maximum conforming loan amount for a Single Family home in our area will be $647,200. Selling loans to Fannie Mae and Freddie Mac enables lenders to free up funds so they can keep loaning money. This new limit is an 18% increase over the limit for 2021, and is a critical part of keeping the housing market working.
The conforming loan limit is reviewed each year and adjusted to reflect changes in the average U.S. home price. This conforming loan limit is intended to be adequate for the financing of a wide variety of homes for the financing needed for the vast majority of homes purchased by families. Giving the continuing run-up in home prices over the past several years, an increase was expected but this was a significant increase over the 2021 limit.
Jumbo Mortgages are those that exceed the conventional conforming loan limit – so the smallest Jumbo loan in our area would be for $647,201. Please contact me if you have questions about Jumbo Mortgages.
This chart shows various down payment options that maximize the new loan limit:
| Purchase Price | $809,000 | $761,412 | $719,111 | $681,263 | $667,216 | ||||
| Down Payment % | 20 % | 15 % | 10 % | 5 % | 3 % | ||||
| Down Payment $ | $161,800 | $114,212 | $71,911 | $34,063 | $20,016 | ||||
| Loan To Value Ratio | 80 % | 85 % | 90 % | 95 % | 97 % | ||||
| Loan Amount | $647,200 | $647,200 | $647,200 | $647,200 | $647,200 |
The above limit applies to one-unit properties in most of North Carolina. There are some areas with a higher loan limit, some are in the Outer Banks area. You can read more about how the new limits are determined by clicking here.
You can read more about the new limits by clicking here.