Each year, the Federal Housing Finance Agency (FHFA) evaluates conforming loan limits and makes adjustments to account for the increase in home values. The “conforming” loan limit (CLL) is the highest loan amount for mortgages to be acquired by Fannie Mae and Freddie Mac. Simply put, this confirming loan amount keeps borrowers out of a “jumbo” loan, which typically comes with higher interest rates.

These loan limits vary by county across the U.S. The new 2022 CLL in most U.S. counties is now $647,200, an increase of $98,950 from $548,250 in 2021. This 18.05 percent increase in the CLL mirrors the FHFA House Price Index increase from the third quarter of 2020 to the third quarter of 2021.

For counties in which 115 percent of the local median home value exceeds the baseline CLL, there is also a new High-Cost Area Limit. These identified high-cost areas set a “ceiling” at 150 percent of the baseline CLL. The high balance ceiling is now $970,800 (Click here for a map to look up your specific county limit).

If you are looking to purchase or refinance around these new loan limits, E5 Home Loans will be happy to provide pricing scenarios for under and over these loan limits so you can make the best-informed decision for your financial situation.

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