2022 New Loan Limits
New Year, New Limits! In the new year, you’re going to be able to qualify for higher loans. On November 30, 2021, the Federal Housing Finance Agency (FHFA) announced they would be increasing the conforming loan limits for California and other U.S. states due to the rising home-prices, which put pressure on buyers to get bigger mortgage loans. This change was due to inflation. You are seeing this increase across the board, not just in real estate. This is the second increase in 2 years which is showing us where the market is headed.
A loan limit is the maximum amount you can borrow under certain mortgage programs. There are different loan limits, such as confirming balance and high balance. The increase of loan limits will allow more people to qualify for more homes. Loans above the high limit balance are considered Jumbo Loans and are usually harder to qualify for. If someone was looking to purchase a home under $1 million, they can now have the option of putting 3-5% down without it being considered a jumbo loan.
Below are the new conforming loan limits starting January 1, 2022:
Now is the time to buy. Contact us to help guide you through this process. We can connect you with our local lenders and Tango Properties can help you find your new home.
For more information, please contact Tango Properties at 818-400-1664 or email us at cbabalian@gmail.com.
Sources:
“California Conforming Loan Limits by County, 2022 Update.” LoanLimits.org, 2 Dec. 2021, http://www.loanlimits.org/california/.
Lucas, Tim. “Conventional Loan Limits for 2022: Complete List of New Limits.” Mortgage Rates, Mortgage News and Strategy : The Mortgage Reports, 8 Dec. 2021, https://themortgagereports.com/27773/2017-conforming-mortgage-loan-limits-fannie-mae-freddie-mac.
Russell, Adam. “Https://Www.fhfa.gov/Mobile/Pages/Public-Affairs-Detail.aspx?PageName=FHFA-Announces-Conforming-Loan-Limits-for-2022.Aspx.” FHFA, 30 Nov. 2021, https://www.fhfa.gov/mobile/Pages/public-affairs-detail.aspx?PageName=FHFA-Announces-Conforming-Loan-Limits-for-2022.aspx.
Trejo, Mike. “California Conforming Loan Limits 2022: They've Officially Gone Up.” Bridgepoint Funding, 30 Nov. 2021, https://www.bpfund.com/official-conforming-loan-limits-2022/.