MORTGAGE NEWS- FHA raises loan limits
Every so often, FHA makes changes to increase the loan limits to keep them in line with the current real estate market. Today new FHA loan limits have been announced for 2022! If you’re closing on a new home on or after January 1, 2022, you’ll likely have more flexibility with your Federal Housing Administration (FHA) loan. The FHA has announced new loan limits for 2022 in response to the dramatic increase in home prices across the country.
Why Did Loan Limits Increase?
Housing prices are on the rise, and the National Housing Act requires the FHA to maintain loan limits at 115% of median home prices, which are calculated using Metropolitan Statistical Area (MSA) and county information. New Loan Limits Floor limits for one-unit properties have increased across most of America, from $356,362 in 2021 to $420,680, in 2022, which is 65% of the national conforming loan limit of $647,200. In high-cost areas, ceiling loan limits have risen from $822,375 to $970,800, which is 150% of the national conforming loan limit. 2022 FHA Loan Limits Old Floor Limit New Floor Limit $356,362 $420,680 Old Ceiling Limit New Ceiling Limit $822,375 $970,800 Want more info? Contact me to learn more about FHA loans and the benefits they offer to homebuyers.