Conforming loan limits are the maximum loan amounts that can be considered for what we call a conventional conforming loan. A conforming loan is one that is not insured by the federal government (loans like VA, FHA or USDA). These limits are set by Fannie Mae and Feddie Mac which are two of the biggest buyers and guidelines creators for loans. in 2021 we saw one of the biggest increases ever to $548,250. In 2022 this limit is going up even high to a record $647,200.
The main benefit to borrowers in this increase is that you can obtain a higher mortgage amount without it becoming a Jumbo loan. Jumbo loans (any loan over the conforming limit) are generally harder to qualify for, typically require at least 20% down payment and require far more documentation. Traditionally Jumbo loans also have a higher interest rate though in the last year or two they have largely remained low.
With the new conforming loan limits someone buying a $680,000 home could put as little as 5% down and not have to obtain a Jumbo loan. There are even high limits for customers buying multi-family properties or buying homes in certain large metro areas. For more information on how this may help you purchase a home please contact me at 910-250-8888.
As always, if you have questions about mortgage guidelines, terms or rates please call/text me at 910-250-8888. I proudly serve the Wilmington, Leland, Hampstead, Jacksonville, Southport areas and am licensed in all of North & South Carolina and Virginia!
apply online: www.JoeyMilam.com
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