What are the conforming loan limits for 2022?

Every year, the Federal Housing Finance Agency (FHFA) modifies the maximum amount you can borrow with a conforming loan, sometimes known as a "regular mortgage."

In most parts of the United States, the loan limit for a single-family home will be $647,200 in 2022.

The maximum rises to $970,800 in more expensive areas of the country, such as Alaska, Hawaii, Guam, and the US Virgin Islands.

Since 2021, these limitations have been raised. In 2021, the single-unit loan ceiling was $548,250 in most of the country and $822,375 in high-cost locations.

These are the borrowing restrictions for single-family homes; however, you can borrow more for two-, three-, and four-family homes.

What to do if you are unable to obtain a conforming loan in 2022?

Jumbo loans are mortgages for customers who require more than the FHFA typically approves. They are often more stringent in terms of eligibility and have higher interest rates than conforming loans. 2022 conforming loan

Expect to need at least a 700 credit score and a down payment of 20% or more. You may also require a debt-to-income (DTI) ratio of 36 to 45 percent.

The more you can borrow with a jumbo loan will depend on your  your credit score, DTI ratio, and down payment.

You might qualify for an FHA mortgage, which is available to persons with credit scores as low as 580 and a DTI ratio of 43 percent or less. The borrowing limit varies by county, and you can find the limit for your county here.

If you are a service member, you may be eligible for a VA mortgage, or a USDA mortgage if you are purchasing in a rural region. Neither of these mortgages requires a down payment.