The maximum conforming loan limit for 2022 will be $647,200 for most of the nation, marking the largest year over year increase in history.

The Federal Housing Finance Agency (FHFA) announced the maximum conforming loan limits for conventional conforming loans to be acquired by Fannie Mae and Freddie Mac in 2022. In most of the nation, the 2022 maximum conforming loan limit for one-unit properties will be $647,200, an increase from $548,250 in 2021 and the largest one-year increase in history. According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased 18.05% percent, on average, between the third quarters of 2020 and 2021. Therefore, the baseline maximum conforming loan limit in 2022 will increase by the same percentage as required by the Housing and Economic Recovery Act (HERA). For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit. The new ceiling loan limit for one-unit properties in most high-cost areas will be $970,800 — or 150 percent of $647,200. As a result of generally rising home values, the increase in the baseline loan limit and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2022 in all but 4 counties or county equivalents in the U.S.

Source: FHFA