What You Should Know About New 2022 Loan Limits

 

Philly Mortgage Team along with AFN recently increased their conforming loan limits. What does this mean to the homebuyer? AFN has increased the loan limits in anticipation for the Federal Housing Finance Agency (FHFA) official 2022 announcement.

AFN’s new conforming limit is $625,000 on a one-unit home. AFN has decided to increase their loan limits ahead of FHFA’s announcement to reflect the rise in home prices this year across the United States. The goal for increasing loan limits is in hopes it will provide more opportunities for home ownership as the increase allows for more borrowers to buy homes at the current prices with lower down payment options and with less underwriting scrutiny then a jumbo loan. 

What is a conforming loan?  A “conforming” loan refers to a loan adhering to within the limits set by FHFA and can be guaranteed by Fannie Mae and Freddie Mac. The main criterion of a conforming loan is that the loan amounts falls under the pre-determine dollar amount, in our new advancement $625,000. A loan amount exceeding the conforming amount is considered a non-conforming loan and is subject to jumbo loan underwriting. This does not hold true for FHA loans whose new limits will be announced in 2022.

AFN along with FHFA has increased the conforming loan amount for yet another consecutive year. To take a look back at previous years, in 2019 the maximum conforming loan amount on a one-unit property was $484,350, 2020 was $510,400 and 2021 was $548,250. The $625,000 limit effective immediately is a substantial increase from previous years.

Below are all the new expanded conforming loan limits:

One Unit - $625,000

Two Unit- $800,250

Three Unit- $967,250

Four Unit-$1,202,000


Kevin Berju, Branch manager AFN. www.phillymortgageteam.com 215-681-3587



Article Written By: Kevin Berju, Branch Manager AFN, www.PhillyMortgageTeam.com

American Financial Network NMLS # 137213


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Kevin Berju starts Philly Mortgage Team with over 25 years in the mortgage industry. Prior to working with residential and commercial mortgages, Kevin graduated with a business degree from Temple University, owned his own business, and worked as an agent for years in both commercial & residential Real Estate. With Kevin’s diverse knowledge of the real estate and mortgage industries, his clients are thoroughly guided throughout their home buying or refinance process. As a result of his knowledge, attention to detail, responsiveness to his clients, and exceptional work ethic, Kevin was awarded the Five Star Mortgage Professional recognition in Philadelphia Magazine for the past successive years as well as reaching the top 1% of all originators country wide since 2012 as designated by Mortgage Executive magazine.

As a mortgage professional for over 2 decades, Kevin is an invaluable resource for both first-time and experienced home buyers. With his accomplishment of the Certified Mortgage Planning Specialist designation, Kevin is placed in an elite group of the top 5% of mortgage professionals in the industry. Looking to Purchase or Refinance in Pennsylvania, New Jersey, or Florida? Kevin Berju is the Lender for You!


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