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Higher Loan Limits to Give Consumers More Homebuying Power in 2022

FHFA Loan Limit Increase Header-1

Effective January 1, Amerifirst Home Mortgage is increasing its single-family loan limits to $647,200 for conventional mortgages, the most popular home loan available.


That’s an 18 percent increase over 2021’s loan limit of $548,250.


This is the sixth straight year that the Federal Housing Finance Agency (FHFA), an independent regulator of the secondary mortgage market and the agency that establishes annual loan limits, has increased conforming loan limits. Their goal is to align loan limits with rising U.S. home prices so average homebuyers can afford to buy - especially in a hot market.


Mark Jones

Mark Jones, our Co-Founder and Co-CEO, says this is good news in today’s tight housing market where demand continues to outpace supply. Housing prices have increased a whopping 18.5 percent over the past year* and Mark says realigning loan limits to keep up with home price increases makes it easier for more families to qualify for the loans they need to achieve homeownership.



Higher loan limits can give you:

  • A larger inventory of homes. A tight housing market pushes home prices up, putting many properties outside of your price range. Many people in this situation may not qualify for a larger loan to buy the home and, as a result, are forced to narrow their home search to properties in a lower price range and without the extras (say goodbye to that extra bedroom, gourmet kitchen, much-needed office space). A higher loan limit keeps you in the playing field by expanding the number of homes you can consider.

  • More purchasing power. Wish you could afford one more bedroom, an updated kitchen, more square footage, or a better location? With higher loan limits, more of the homes you’d love to call your own could be within your reach.

  • Extra money when you refinance. Already own a house? A higher loan limit may help you tap into more of your home’s value if you choose to refinance your current mortgage and take cash-out to pay down debt, create an emergency fund, or remodel your home. And if you use the money to make improvements to your home, its value could be even higher when it’s time to sell.


Lower interest rates


Higher lending limits means you can take advantage of conventional interest rates without having to take out a higher jumbo or non-conforming loan. For example, let’s say you’ve found your dream home with a price tag of $595,000. Under the new 2022 loan limits, you would qualify for a conforming loan. However, if you wanted to buy this home in 2021, the price tag would put you over the loan limit, and you would need to seek out non-conforming loan options (think Jumbo loan), which tend to come with higher interest rates.


Bottom line: It’s easier to qualify for a conventional home loan within the higher loan limits; it’s much more budget-friendly, expands your choices to include higher priced homes, and the hassle factor is much reduced.



Which types of loans qualify?


The new loan limits apply to conventional mortgages purchased by Fannie Mae or Freddie Mac, government-backed mortgage companies regulated by FHFA. The new limits apply to almost all counties in the United States, although in higher-cost markets like San Francisco and New York City, the maximum limit is $970,800. 


FHA loan limits are likely to rise, too, but not as high as conventional mortgages. They are typically set at 65 percent of the conventional loan limit. This year (2021), FHA loan limits for single-family home loans range from $356,362 - $822,375 and vary by county.

UPDATE (12/1/21): FHA loan limits will increase to $420,680 - $970,800 for 2022, according to the Federal Housing Administration.


We can help.


We know the mortgage business is confusing. That’s why we’re here. We can discuss your options, answer your questions, and get you on the road to reaching your goals. We can also provide you with a pre-approval letter that tells you how much home you can afford. Ready to get started?


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*September 2020 - September 2021 - Federal Housing Finance Agency.


This is not a commitment to lend. Not all borrowers will qualify; contact us for more information on fees and terms. A cash-out refinance increases your mortgage debt and reduces the equity you may have in your home. Your monthly mortgage payments may be higher.


Janet Veach
Janet Veach
Janet Veach is the Communications Specialist for Amerifirst Home Mortgage. As the former Communications Director with the Alzheimer’s Association in Central Illinois, she believes that building strong relationships leads to dynamic partnerships that can dramatically improve our neighborhoods and communities. The mother of three sons, she has heard many a good story, and specializes in creating content that educates, communicates our core values and promotes genuine relationships with our customers.

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