Conventional and FHA Loan Limits are Increasing in 2022
Each year, the Federal Housing Administration (who regulates FHA Loans) and the Federal Housing Finance Agency (who regulate Fannie Mae and Freddie Mac Conventional Loans) set maximum limits for the loans they service. This means that along with meeting other requirements set by the agencies, a borrower’s loan must fall below a certain number in order to qualify during that year.
Although there are options for borrowers who need loans above the conforming limits set by the FHA and FHFA, these non-conforming alternatives often come with disadvantages. For example, a borrower who takes out a Jumbo Loan rather than an FHA or Conventional Loan will typically be required to pay a much higher interest rate – despite the fact that they also need a significantly higher income, credit score, and down payment in order to qualify.
Because of the benefits that FHA and Conventional Loans provide compared to their non-conforming alternatives, an increase in their limits could open the door for borrowers nationwide. That’s why we’re so excited to announce that both the Federal Housing Finance Agency’s FHA Loan Limits and the Federal Housing Finance Agency’s Fannie Mae and Freddie Mac Conventional Loan Limits have expanded in 2022!
These increases could provide better terms to homebuyers whose options were previously limited, so we strongly suggest you submit an application now if you think a Conventional or FHA Loan may be right for you. In the meantime, if you have any questions about FHA Loans, Conventional Loans, or Conforming Loans in general, you can chat with your digital assistant, Lydia, or contact one of our Loan Officers today.
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