As reported by Fox News Business
The Federal Housing Administration (FHA) increased its mortgage loan limits for single-family homes in 2022, which will allow borrowers with lower credit scores to take out a higher loan amount.
For most of the U.S., the loan limits for FHA mortgages will increase in 2022 to $420,680 for most counties, specifically in areas where 115% of the median home price is less than this limit. This equates to 65% of the newly-announced conforming loan limit of $647,200 for conventional loans.
Areas in which 115% of the median home price is above the new FHA mortgage limit are considered high-cost areas, and have a new loan limit ceiling of $970,800, or 150% of the national conforming loan limit.
“The increase in loan limits, commensurate with the increase in home prices, will allow qualified individuals and families to continue to access FHA-insured mortgages to achieve affordable home financing,” said Lopa Kolluri, principal deputy assistant secretary for housing and FHA.
For homebuyers, this means they can qualify for higher-priced homes using an FHA loan, and homeowners can refinance their current mortgages for larger amounts. If you want to take advantage of higher loan limits through a new home purchase or refinance, visit Credible to find your personalized rate without affecting your credit score.