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  • Writer's pictureJoseph Shmurak

New Loan Limits for 2022!

Updated: Dec 2, 2022

We have some wonderful news for our home buyers! The Conventional loan limit for 2022 has been announced. The Conventional loan limit for 2021 was $548,250. The new Conventional loan limit has been increased to $625,000. That is roughly a $76,000 increase! High Balance loan limit is now $937,500!

So in plain English, what does that mean? Let’s say that you wanted to purchase a home for $1,200,000. Currently, you would have to put almost 30% down in order to keep your loan amount under the $822,375 (2021 Conventional High Balance loan limit). If you borrowed more than that $822,375 number, you would have to go with a Jumbo loan. Higher rate, higher fees, and more headaches! However, now you would be able to put the minimum down on that same $1,200,000 property without having to go with a Jumbo loan product. Great stuff!

An increase in the conforming loan limit means more homebuyers will be able to apply for conforming mortgages instead of “jumbo” loans, which are typically harder to qualify for and carry higher interest rates because they’re not backed by Fannie and Freddie.

Here is more great news! Typically, these loan limit changes do not take effect until January 1st of the next year. However, being mortgage brokers, we have some lenders who are already honoring this loan limit change, effectively immediately!

Now, only certain lenders will be accepting these loan limit changes effective immediately, so if you know someone looking to purchase a home, or have any questions regarding the home buying process, please contact us at 949-678-1001.

P.S. This loan limit will be even higher for 4-Unit--we are estimating loan limits around 1.7M, which means you can put 25% down on a $2.3M Purchase and still get a rate of 2.99%! Hard to imagine not being able to get a decent return on equity with this scenario.

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