Posted by Blake Montgomery on Dec 16, 2021 4:47:48 PM
Blake Montgomery


The Federal Housing Finance Agency (FHFA) has announced new loan limits for 2022! The maximum conforming loan limit for one-unit properties in most parts of the U.S. is increasing  to $647,200, up from $548,250 in 2021.

Why Are Loan Limits Increasing?

National Baseline The Housing and Economic Recovery Act (HERA) requires that the baseline Conforming Loan Limit for Fannie Mae and Freddie Mac be adjusted each year to reflect the change in the average U.S. home price.  FHFA published its third quarter 2021 FHFA House Price Index® (FHFA HPI®) report, which includes statistics for the increase in the average U.S. home value over the last four quarters. According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 18.05 percent, on average, between the third quarters of 2020 and 2021. Therefore, the baseline CLL in 2022 will increase by the same percentage.

High-Cost Area Limits  For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the applicable loan limit will be higher than the baseline loan limit. HERA establishes the high-cost area limit in those areas as a multiple of the area median home value, while setting a "ceiling" at 150 percent of the baseline limit. Median home values generally increased in high-cost areas in 2021, which increased their CLL. The new ceiling loan limit for one-unit properties will be $970,800, which is 150 percent of $647,200.

2022 Loan Limits

New Baseline Limit                            New Baseline Limit


$647,200                                          $970,800


View List of maximum loan limits by county.

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Topics: prequalification first-time home buyer On Time Closing Mortgage Loans Loan limits