Who Sets FHA Conforming Limits?

It sure was a long 2021 year for real estate market with lots of surprises. Record rise in home prices pushed clients to get bigger loans. But that is totally another story.

Welcome to 2022 and new FHA conforming limits are out, this is what pretty much sets the standard for the market and keeps the market in check, without spiraling out of control. The Department of Housing and Urban Development (HUD) controls the standards, pricing and sets the ethics when it comes to USA housing market. It is the very organization that made it possible for millions of Americans to be come first time home buyers and owners. It is also the very department that protects home sellers and buyer from housing price gauging and sets the limits for the bank’s mortgage loans.

As of January 1, 2022, new loan limits are in affect.

2022 FHA Conforming Limits – Lana Loan

What Are 2022 Basic FHA Limits?

As always these limits tend to go up with each year, however, the most significant spike was recorded in past two years, especially for 2022.

The FHA loan limits for 2022 range from $420,680.00 – $970,800.00. However, keep in mind that ceiling amounts vary by county and type of the FHA loan.

For example, the max loan amount on a single-family home in a low-cost county for FHA Forward is $420,680.00, while the Fannie Mae and Freddie Mac max loan amount on a single-family home in a low-cost county is $647,200.00.

Types of FHA Loans

If you read carefully the last section, you probably noticed that there are two different limits for same type of mortgage loan. Yes, there are different type of loan programs for FHA loans. To be more correct Department of Housing and Urban Development (HUD) has three programs for FHA loans:

  • FHA Forward: A mortgage you mostly familiar with normally, but it is HUD insured. An FHA Forward mortgage allows the borrower to apply for funds to purchase the home, with options to finance the up-front Mortgage Insurance Premium and certain approved, appraiser–required corrections where applicable.

  • Fannie/Freddie: Fannie Mae and Freddie Mac, are federally backed home mortgage organizations created by the United States Congress. Neither institution originates or services its own mortgages. Instead, they buy and guarantee mortgages issued through lenders in the secondary mortgage market.
  • HECM: A Home Equity Conversion Mortgage, and it’s pronounced “heck-em.” This reverse mortgage is government-backed and supervised by the Federal Housing Administration (FHA). The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through an FHA-approved lender. The HECM is FHA’s reverse mortgage program that enables you to withdraw a portion of your home’s equity. Be 62 years of age or older. Own the property outright or have a small mortgage balance. Occupy the property as your principal residence. Not be delinquent on any federal debt.

So What are the 2022 FHA Limits And How They Compare To Past?

Most common FHA loans are FHA Forward and Fannie/Freddie loans. Historically the least limit required is with FHA Forward, however, Fennie/Freddie always gave plenty of room to work with. But, remember, all limits are based on county cost area, on borrower’s credit score.

FHA Basic Standard Mortgage Limits

FHA Forward Limits for 2022

FHA Forward Basic Limits 2022

Fannie Mae and Freddie Mac FHA Limits for 2022

Fannie Mae/Freddie Mac Limits 2022

FHA High Cost Area Limits

FHA Forward High Cost Area Limit

FHA Forward High Cost Limits 2022

Fannie Mac and Freddie Mac High Cost Area 2022 Limit

Fannie Mae/Freddie Mac High Cost 2022 Limits

Applying for an FHA Loan in 2022

FHA loans have some of the best terms, and when we combine these new higher limits with low credit requirements and a low down–payment, you can see why home shoppers everywhere are thrilled.

If you’re looking to buy or refi your home with an FHA mortgage, you can get started by filling out the pre-qualification form here: