Maximum Loan Limits Increase Nationwide
Most of the loans done in the United States end up with Fannie Mae, Freddie Mac, or The Federal Housing Administration (FHA). All three agencies have Maximum Loan Limits, meaning that regardless of someone’s qualification there is a cap on the loan amount. Over the last few days all three announced increases to those limits. This year those increases were rather large due to the huge home appreciation rates the industry has seen.
There are two buckets for the caps that vary by area of the country. Most of the areas we serve in Michigan and Ohio are considered low costs areas. The low cost areas were increased as follows:
Fannie Mae & Freddie Mac Conforming Loan Limits For 2022
| Property Size | Baseline Loan Limits |
| One-Unit | $647,200 |
| Two-Units | $828,700 |
| Three-Units | $1,001,650 |
| Four-Units | $1,244.850 |
FHA Loan Limits
| Property Size | Low-Cost Area “Floor” |
| One-Unit | $420,680 |
| Two-Units | $538,650 |
| Three-Units | $651,050 |
| Four-Units | $809,150 |
This is all great news for home buyers and sellers. For buyers looking in that higher end market they are now able to reach some higher price points without needing “jumbo” financing. Typically with jumbo loans they have less attractive financing terms and more strict qualifying guidelines. These welcomed increases are bound to help keep that higher end market moving. If you have questions or need help with financing your next home don’t hesitate to reach out!
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Did your mortgage lender suddenly go radio silent, request the same bank statement for the fourth time, or drop a last-minute loan denial right before your scheduled closing date?
Yesterday, a panicked real estate agent called my office from Portage. Their buyer had been under contract for three weeks on a home near Milwood. The closing date sat just nine days away.
Out of nowhere, the buyer’s out-of-state call-center lender issued a denial letter. The call-center underwriter miscalculated self-employment write-offs, panicked over an unpermitted porch repair on the appraisal, and threw the entire transaction into the trash can.