New Loan Limits: What Home Buyers Need to Know

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Filed under: Market Comentary

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The big news in the mortgage industry is that we have new conforming and FHA loan limits for 2022!

New Loan Limits for Conventional and FHA Loans

Starting right away for conventional loans, the new limit across the United States is $647,200. Any conventional loan with 3% down for first-time homebuyers, or 5% down for other buyers, can get great conventional interest rates on a loan up to this new limit.

The highest limit out there (such as LA and Orange County), they are all going to be up to $970,800 – which is high… almost to a million dollars on a conventional loan!

The new FHA limit, which is high particularly here in Riverside County, is $562,350. It’s about a $90,000 increase, which is a big deal. You’ll need 3% down, and FHA is still great way to go if you have some credit challenges.

It’s all great news! Click here for more information if you’d like to see the breakdown and other details.

Timeline for New Loan Limits

VA loans will follow conventional limits. Both VA loans and FHA loans won’t be able to start until next year. So, we’ll need to wait until 2022 starts before we can start using these new loan limits.

But the conventional loan limits can start right now. In fact, we’ve already reprogrammed our system so we can lock things in at the new limits right away.

Need Personal Mortgage Advice?

I’m happy to share this good news for the day. If you have any questions, you can reach out to me to learn more about these changes. I’m always here to answer questions about your personal loan options, helping you find the best solutions for your home purchase or refinance. Call me and the team here at Franklin Loan Center!

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