Published December 20, 2021
Major Shift In Conforming Loan Limits for 2022
Last week, the Federal Housing Finance Agency (FHFA) delivered much-needed relief to many homeowners (and those wanting to become homeowners) in high cost of living metropolitan areas by dramatically increasing the 'conforming' loan limits for mortgages by nearly 15%.
In 2022, conforming loan limits in King/Snohomish/Pierce counties will rise to $891,250 which is up to $115,000 from $776,250 in 2021.
With this shift, many more buyers and mortgage holders can avoid the expense, increased underwriting scrutiny, and hassle of Jumbo mortgages when purchasing as this new limit makes homes up to $1.1M available for purchase with a 20% down payment.
While it may not seem huge, in practical terms this can increase affordability for buyers in the $800k to $1.2M range by 5-7% by providing access to a much broader range of standard loan programs. If you have questions about how this shift may impact your plans, give us a call!
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