Fannie Mae Announces New County Loan Limits for 2022
The Federal Housing Finance Agency (FHFA) publishes annual conforming loan limits that apply to all conventional loans delivered to Fannie Mae. These include baseline and high-cost area loan limits; high-cost areas vary by geographic location.
The conforming loan limits for 2022 have increased and apply to loans delivered to Fannie Mae in 2022 (even if originated prior to 1/1/2022). Refer to Lender Letter LL-2021-16 for specific requirements.
Source: https://singlefamily.fanniemae.com/originating-underwriting/loan-limits
2022 Loan Limits Overview
Loan limits increased for all but 16 counties across the country, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands.
In four counties, the limits remained unchanged.
Twelve counties moved from being high-cost areas (and subject to high-balance policy) to the baseline loan limits.
2022 High-cost Counties/Metropolitan Statistical Areas (MSA)
There are high-cost areas within the following states: California, Colorado, Connecticut, District of Columbia, Florida, Idaho, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Tennessee, Utah, Virginia, Washington, West Virginia, Wyoming.
The high-cost area limits published in Lender Letter-2021-16 are the statutory ceilings provided by FHFA, but should not be used to determine the loan amount. Lenders must find the applicable loan limit for counties/MSAs in the Loan Limit Look-Up Table or on FHFA's web page.
How does this help Michigan home buyers and realtors?
Example: A home listed for $700,000 in 2022 requires a down payment of $52,800 (to reach the loan limit of $647,200) - in 2021 that would have been $151,750 (to reach the loan limit of $548,250) .
So now you have an extra $98,950 to cover an over asking price offer, save for updates, apply toward principle, OR save/invest!
