FHFA Conforming Loan Limits Have Increased

The Federal Housing Finance Agency (FHFA) has announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2022. 

In most of the U.S., the 2022 maximum conforming loan limit for one-unit properties will be $647,200, an increase from $548,250 in 2021. In high-cost areas, the 2022 conforming loan limit is $970,800, up from $822,375 in 2021.

At Ameris Bank, these new loan limits will apply on new loan applications beginning December 1, 2021.

What it means
More borrowers may be eligible for conforming loans, instead of a jumbo loan.

Why it matters
Conforming loans typically offer a lower interest rate than non-conforming (or jumbo) loans, which means lower monthly mortgage payments and less money spent over the life of the loan. Additionally, jumbo loans often have stricter qualifications, including larger down payment minimums, higher credit scores and higher income levels.