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FHA Announces Increases in the 2022 FHA Loan Limits

FHA Announces Increases in the 2022 FHA Loan Limits

On December 1, 2021 the FHA announced increases to the national “floor” loan limits from $356,362 in 2021, to $420,680 in 2022.

The National Housing Act requires the FHA to review average national year-to-date home sales for the current year to determine what the new limits will be for the following year. The 2022 FHA loan limits will be 65% of the conforming loan limit for 2022.  $647k

The FHA national low-cost area mortgage limits by property unit number, as follows:

    • One-unit: $420,680
    • Two-unit: $538,650
    • Three-unit: $651,050
    • Four-unit: $809,150

The FHA national high-cost area mortgage limits by property unit number, as follows:

    • One-unit: $970,800
    • Two-unit: $1,243,050
    • Three-unit: $1,502,475
    • Four-unit: $1,867,275

The FHA national Special Exceptions for Alaska, Hawaii, Guam, and the
Virgin Islands mortgage limits by property unit number, as follows:

    • One-unit: $1,456,200
    • Two-unit: $1,864,575
    • Three-unit: $2,253,700
    • Four-unit: $2,800,900

These loan limits are effective for any new FHA case numbers established on or after January 1, 2022. You can find a full list of all 2022 FHA loan limits by county here -> 2022 FHA Loan Limits

What Impact Will the New 2022 FHA Loan Limits Have?

With rising home costs throughout the US, homeowners found themselves in a situation where homes in their county were priced higher than what they could afford with FHA insured financing. They were essentially priced out of the market.

Now that the loan limits have increased, more home buyer will have the ability to qualify for a higher priced home while taking advantage of the smaller down payment of 3.5%.

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