Conforming Loan Limits Rise for 2022

The Federal Housing Finance Agency has announced record-high conforming loan limits for loans to be acquired by Fannie Mae and Freddie Mac in 2022.

New Baseline

In most zip codes throughout the country, the maximum conforming loan limit (CLL) for 2022 will be $647,200. This is the new baseline CLL.

The new conforming loan limit is $98,950, or 18 percent, higher than 2021's maximum of $548,250, making this the largest increase ever both in terms of dollars and percentage. 

High-Cost Area Limit Is Now Nearly $1 Million

In designated high-cost areas, the maximum limit will rise to $970,800, which is 150 percent of the baseline CLL. High-cost areas are those where 115 percent of the local median home value exceeds the baseline CLL.

Why Such a Big Increase?

Median home values exploded around the U.S. in 2021. The FHFA announced on November 30 that house prices rose 18.5 percent from Q3 2020 to Q3 2021. Some markets saw even bigger increases.

Under the Housing and Economic Recovery Act of 2008, the FHFA is required to keep the conforming loan limit in line with home values.

What does the increase mean for homebuyers?

When the conforming loan limit rises, it means more homebuyers can apply for conforming mortgages instead of jumbo loans. This is a good thing for potential buyers because jumbo loans are usually harder to qualify for and carry higher interest rates because they’re not backed by Fannie and Freddie.

Find conforming loan limits in your area

To find the conforming loan limit for any county in the U.S., use FHFA's interactive map.