The 2022 Conventional Loan Limit Increase

The 2022 Conventional Loan Limit Increase

Are you ready to buy your own home, and trying to decide what financing option is the best for your situation? You may have heard about conforming loans during your research and that there are specific loan limits for different types of loans. You also may be wondering how that will impact the amount of money you will be able to borrow. If you are looking to buy a home in Mount Pleasant, South Carolina, and want to better understand the loan limits for the upcoming year, Lucey Mortgage Corporation can help. Read on to learn more about how the conventional loan limit increase of 2022 could affect the purchase of your home.

Conforming Loans: Essential Information

A conforming loan is one of the most common financing options a borrower uses to purchase a home and meets certain financial terms and conditions. Conforming loans have maximum loan limits set by Fannie Mae and Freddie Mac, (government backed companies that buy loans from other financial institutions), and mortgages that fall under the loan limit and meet the necessary criteria are known as conforming loans. Conforming loan limits are adjusted each year to correspond to changes in home values in the real estate market. They are set by the Federal Housing Financing Agency, (or FHFA), and every region has a baseline conforming loan limit to account for the various price ranges associated with the housing costs in that particular area. If a mortgage amount is higher than the conforming loan limit, it becomes a non-conforming loan, or a “jumbo” loan, which has higher interest rates and is a greater risk for lenders. Conforming loans are advantageous for a borrower because they can save you money over time by offering lower interest rates.

Conforming Loan Limit To Increase In 2022

The prices of homes have increased substantially in the past year, so the FHFA has increased conforming loan limits in 2022. Many lenders have already begun to offer borrowers conforming loans with a limit of $625,000, compared to the $548,250 limit that was set in 2021. The loan limit increase officially changes in the month of November, and it was recently announced that the conforming loan limit for 2022 is set at $647,200 nationwide.

Get Help With Home Financing In 2022

Next year, you will be able to borrow up to $647,000 with a conforming loan in most parts of the U.S., and if you are looking to buy a home in a more expensive area, you may be able to borrow up to $970,800. If you are ready to purchase your own home within the coming year, and looking for the best financing solution to help you purchase your dream home in Mount Pleasant, South Carolina, the loan specialists at Lucey Mortgage Corporation can help. Contact us today for a consultation.

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Lucey Mortgage Corporation
861 Coleman Blvd
Mount Pleasant, SC 29464

Phone:
843-224-3650
EFax:
888-534-8868

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