The Federal Housing Finance Agency (FHFA) announced an increase in conforming loan limits. According to the FHFA, the median home prices in the U.S. have increased, prompting a change. Many welcome this move as it will mean they can receive higher loans for properties they desire.

What is a Conforming Loan Limit?

The CLL(Conforming Loan Limit) is the dollar limit of a mortgage that both Fannie Mae and Freddie Mac can guarantee. They announce these FHFA loan limits during November of each year. Conforming loans refer to the usual lending services that fall within the standard requirements.

Conventional Loans(Fannie Mae/Freddie Mac)

With this announcement, one-unit properties will now have a conforming loan limit of $647,200, which is an increase of nearly $100,000 compared to 2021’s limit. For reference, the limit for CLL in 2021 was $548,250.

High-cost areas also changed in limit due to homes doubling in value based on the median.The new CLL for these properties is now at $970,800, 150% higher than 2021’s CLL of $647,200. A new CLL of $970,800 will be the standard for areas such as:

  • U.S. Virgin Islands
  • Guam
  • Alaska
  • Hawaii

The expectation is that the conforming loan limits will continue to change each year. As a part of the Housing and Economic Recovery Act (HERA), adjustments must occur. The limits will consider the average price of U.S. homes, and from there, the baseline of Conforming Loan Limits will also increase by the same percentage.


FHA Loan Limits

FHA loans are backed by the HUD and bought by Ginnie Mae on the secondary market. Limits on FHA loans also went up significantly for 2022. According to the HUD, the limits will increase around 18% on average. The new values for these are as follows, according to NAHB The new values for these are as follows, according to NAHB Now:

  • Low cost one-unit: $420,680
  • Low cost two-units: $538,650
  • Low cost three-units: $651,050
  • Low cost four-units: $809,150


  • High cost one-unit: $970,800
  • High cost two-units: $1,243,050
  • High cost three-units: $1,502,475
  • High cost four-units: $1,867,275

Aside from these price changes, classifications of several counties have adjusted. Twelve counties are now low-cost areas, moving away from high-cost limits.

FHFA/FHA HUD Loan Limits 2022 Effects

The adjustments aim to help interested homebuyers gain an opportunity to buy homes based on current prices. If they don’t adjust the loan prices, borrowers could get less than the average home price. Consequently, the opposite can also be true; borrowers can possibly get more money which could harm the market price fluctuations.

The goal of the FHFA and HUD is to create a balance based on price changes that occur among all states. That way, they avoid alienating borrowers and creating scenarios that could lead to an abnormal market state.

In light of these changes, if you’d like loan and mortgage services, contact Robus Mortgage today to get a free quote.