What the Increase in Loan Limits Means to you
The Federal Housing Finance Agency recently announced the new baseline conforming loan limit for Fannie Mae and Freddie Mac in 2022 is now $647,200. This is up almost $100,000 from the 2021 limit of $548,250 and marks the sixth consecutive year of increases.
The maximum loan amount for a single-family home through the high balance mortgage program in San Diego County for 2022 is $879,750. This is a 16.8% increase from the 2021 limit of $753,250.
The maximum loan amount for a single-family home through the high balance mortgage program in Orange County and Los Angeles County is now $970,800, up 18.05% from the 2021 limit of $822,375.
Why are these increased loan limits so important?
These loans are Government-insured and guaranteed. The underwriting is very specific, but they offer many advantages to home buyers:
1. Low down payment options:
- 3% down payment to $647,200 conventional loans
- 3.5% down payment on FHA high balance, $879,750 in San Diego and $970,800 in Orange and LA Counties
- 5% down payment on conventional high balance, $879,750 in San Diego and $970,800 in Orange and LA Counties
2. Most only require one year of tax returns for self-employed borrowers
3. Non-occupant co-borrowers allowed
4. All funds needed on a primary residence can be gifted from a family member
5. Low interest rates
6. Lower FICO scores accepted
7. Most loans are eligible with a 50% debt to income ratio
8. 15-20 day closings on most loans
9. Excellent option for buyers in the $2M-$3M price range who want a lower loan amount
Have questions? Contact one of our mortgage loan officers to get answers.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information. 