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NEW! 2022 Conforming Conventional Loan Limit increased 18% to $647,200! Available TODAY in Florida!

Updated: Dec 2, 2021

No need to wait until 2022 to take advantage of the NEW maximum conventional conforming loan limit: $647,200. The 2022 limit is an increase of $98,950 from the 2021 maximum loan limit of $548,250. When the max loan amount increases, your real estate purchase power, aka purchase price, also increases. Right now you can make a home purchase up to $809,000 with the low rates and simplified approval process of a conventional home loan.

The new loan limit for the following year isn't typically announced by the Federal Housing Finance Agency (FHFA) until November, but some lenders to include Simplicity Mortgage, have raised their conforming limits ahead of the FHFA announcement to support qualified borrowers ready to purchase a home while interest rates are still low.

A conventional loan limit is the maximum loan amount allowed on a conventional purchase or refinance.

Fannie Mae and Freddie Mac are restricted by law to only purchase single-family mortgages below a specific amount, which is known as the "conforming loan limit". This limit for single-family, one-unit properties started around $33,000 back in the early 1970's and steadily increased to $417,000 in 2006. For specific high-cost areas outside the continental United States (Alaska, Hawaii, Guam and the US Virgin Islands) the maximum loan is capped at 150% of the loan limit. Over the years, the loan limit was raised in more expensive counties within the continental United States through various legislative acts, while other legislation established temporary limits for loans originated in certain time periods. A permanent formula for calculating the conforming loan limits was established in The Housing and Economic Recovery Act of 2008.

2022 = Largest dollar increase & % increase on record.

2006 had been the record holder for largest dollar increase on record. That year the loan limit jumped $57,000, from $359,000 to $417,000. This new announcement of the 2022 increase of $98,950 beats the 2006 figure by over $41K. It also beats the 2006 record for highest % increase 2.1%!

Over the years, maximum conventional loan limits have climbed to the highest yet in 2021 at $548,250. The annual limit increase has varied depending on the economy and current home prices. Some years the increases were slight, or had no increase at all - most notably from 2006 to 2016. The maximum loan limit remained constant for 10 years straight, until 2017 saw around a 2% increase. 2018 and 2019 were around a 7% increase, 2020 dipped to 5% and then 2021 saw the largest percent increase to date at 7.4%. The loan limits over the last 20 years are shown below in Table 1.

For the 6th year in a row, the loan limit has increased quite significantly, which isn't surprising based on today's competitive housing market. Each year since 2008, the loan limit has been calculated based on the average home price increase from Q3 of the previous year to Q3 of the current year. For 2022, home prices are estimated to have respectively increased by 14% at the end of Q3, so the 2022 loan limit is also increasing by 14%.

Table 1. Historical Maximum Conforming Loan Limit data from 2000 to 2022.

What does an increase of conventional loan limits mean for you?

The opportunity of more purchase power! The loan limit is the maximum amount you can finance while still qualifying for a conventional loan. As an example - if you put 20% down, as many do on conventional loans, you can now purchase a home with a purchase price up to $809,000. Keep in mind, first-time homebuyers may qualify to put only 3% down and previous/current homeowners may secure a conventional loan with only 5% down. This would reduce the overall purchase price a bit, but as long as the loan doesn't exceed $647,200 it can be done with a conventional loan! Borrowers who put less than 20% down will have to pay mortgage insurance.

A conforming conventional mortgage at this point is extremely advantageous!

Previous home purchases this large required a jumbo loan, which often comes with a more intricate qualification process and a slightly higher interest rate.

When can I take advantage of this new conventional loan limit?

Today! These new limits are now available at certain lenders to include Simplicity Mortgage.

Ready to purchase your dream home?

Call the local loan experts at Simplicity Mortgage today and we'll help you find the best loan option for your next home!


Simplicity Mortgage is a mortgage brokerage located in Port Orange, Florida.

Simplicity works with borrowers looking for for real estate financing in all areas of Florida. Our service area includes Volusia and Flagler counties, Palm Coast, Ormond Beach, Ormond by the Sea, Deland, Daytona Beach, Daytona Beach Shores, Port Orange, Ponce Inlet, New Smyrna Beach, Orlando, Jacksonville, and all surrounding areas of Florida.

Our portfolio consists of more than 12 national lending institutions, which allows us to identify the most financially beneficial options for our clients.

Our goal is to provide a smooth loan process and exceptional customer experience coupled with a low interest rate and minimal fees. We will keep you updated and informed throughout the process.

Our loan portfolio contains a variety of loan products: Conventional, VA, FHA, USDA, Jumbo, Non Qualified Mortgage (non-QM), Self Employed, 1099, first time home buyer, investment, and secondary property purchases.

Looking to stay in your home? There are plenty or money saving options for your refinance as well to include IRRRL, Home Equity Loan, Streamline Refinance, Cash Out, and Rate and Term.

Call Simplicity Mortgage today to discuss your home purchase or mortgage refinance. We will utilize your financial information to determine future mortgage payment with available mortgage rates to help you determine the best path to achieve your financial and real estate goals.