2022 HIGH-BALANCE LOAN LIMITS INCREASING TO $970,800

The Federal Housing Finance Agency (FHFA) is increasing high-cost conventional loan limits up to $970,800 for borrowers in some of the nation’s priciest housing markets. As a result, Finance of America Mortgage TPO is also increasing its high-balance limits up to the same amount, available to FAM borrowers beginning Dec. 6.

The high-balance increase follows FHFA’s decision to increase the baseline conforming loan limit up to $647,200 for most parts of the country. That’s an 18% increase over the 2021 limit of $548,250.

To search all FHFA conforming loan limits by county, download this spreadsheet.

The high-balance loan limit increase allow borrowers in high-cost counties to access conforming loan pricing – and competitive mortgage rates – at higher loan amounts that would normally require them to take out a jumbo mortgage. Jumbo loans typically come with higher mortgage rates and more stringent borrower requirements, such as a larger down payment and a higher minimum credit score, than conventional loans. 

To explore mortgage options, contact your Sr. Account Executive today. 

What FAM’s increased high-balance loan limit means for borrowers  

FAM’s increase in high-balance loan limits offers key benefits to borrowers, including:  

  • Higher loan amounts for borrowers in high-cost housing markets. 
  • Access to lower down-payment loan programs. 
  • Access to lower conventional interest rates than a jumbo mortgage. 
  • Earlier access to higher loan amounts. 

The timing of higher loan limits comes as home prices continue to skyrocket. Home-price appreciation climbed 18% year over year in September – a record high, according to the latest CoreLogic Home Price Insights report.  

Borrowers, particularly first-time homebuyers, are getting sidelined as home prices soar out of their reach, spurred by an ongoing inventory shortage. Providing access to higher conforming loan amounts ahead of the new year is one of many ways FAM is offering help – and hope – to borrowers in this competitive housing market.