New 2022 Conventional & FHA Loan Limit Increase

Beginning 2022, mortgage loans will increase, making it easier for homebuyers to purchase a home. This means qualifying buyers will be able to take out a larger loan that is backed by the government.
In this article we will go over:
New loan limits
Conventional loans for 2022
FHA loans for 2022
VA loans for 2022
Benefits of buying a home in 2022
Let’s dive in.
If you’re looking to purchase a home in 2022, here are the loan limits of how much you can borrow in most of the United States.
Single-family home:
Conventional loan – $647,200
FHA loan – $420,680
VA loan – No loan limit
In areas where houses are priced higher, the 2022 conforming loan limits are higher (closer to $1 million).
Conventional loans for 2022
Conventional loans are the most common home loans for mortgages.
For a one-unit property, the maximum conventional loan limit is $647,200 for most of the country in 2022. In 2021 the conventional loan limit was $548,250. From 2021 to 2022, the loan limit has increased by $98,950.
A two-unit property the loan limit has increased from $702,000 to $828,700. This is a $126,700 increase from 2021 to 2022.
A three-unit property the loan limit has increased from $848,500 to $1,001,650. This is a $153,150 increase from 2021 to 2022.
A four-unit property the loan limit has increased from $1,054,500 to $1,244,850. This is a $190,350 increase from 2021 to 2022.

Conventional loans are great because they offer:

Down payment as low as 3%
620 minimum credit score requirement
No PMI (private mortgage insurance) with 20% down
Debt-to-income ratio limit of 45%
Click here to read the benefits of Conventional loans
FHA loans for 2022
FHA loans are great for first-time homebuyers or buyers with average incomes and credit scores. FHA loans have also increased their limits starting 2022 from $356,362 to $420,680. This is a $64,318 increase from 2021 to 2022. As mentioned previously, the loan limits vary based on the area you live in.
A two-unit property loan limit has increased from $456,275 to $538,650. This is an $82,375 increase from 2021 to 2022.
A three-unit property loan limit has increased from $551,500 to $651,050. This is a $99,550 increase from 2021 to 2022.
A four-unit property loan limit has increased from $685,400 to $809,150. This is a $123,750 increase from 2021 to 2022.

FHA loans can be a great first-time buyer loan because:

Low down payment options
Down payment assistance programs are available
Higher DTI ratios accepted
Easier qualifications
Click here to read the benefits of FHA loans
VA loans for 2022
VA loan limits will not exist in 2022. Veterans, active-duty service members, national guard, and widowed spouses will be eligible. VA loans also don’t have a required down payment or mortgage insurance. This is a huge advantage compared to any other loan. Not to mention, the lowest rates on the market.
VA loans will have an upfront funding fee which usually borrowers add to the mortgage closing costs. The fees are:


Benefits of VA loans:
$0 down payment (no other loan type has this)
No mortgage insurance
Low credit scores accepted
Competitive interest rates
Easy to qualify
Click here to learn about VA loan benefits.
Benefits of Buying a Home in 2022
If you’re considering buying a home in 2022, there are a few things you should know. Housing inventory will continue to rise which means you will have more homes to choose from. This could mean less competition. More inventory, less competition, and low-interest rates are good reasons to purchase in 2022.
Keep in mind, 2022 will have higher loan limits so you may be able to afford more expensive homes. This is beneficial if you live in a higher-cost area where real estate prices have increased. Buying a home in 2022 can be a good investment for you if you have a decent credit score, money saved, and looking to live in the same place for a few years.
Want to create a personalized mortgage plan? Click here to schedule a call with us and let’s get you into a home in 2022.
Get approved to buy a home.
We can get you approved in less than 21 days
Written by:
Raquel Gutierrez
Raquel Gutierrez is the Marketing Director for Mint Mortgage and Mortgage Chicks. She focuses on business marketing and development. She has a B.A. in Psychology and Marketing.