Financing Your New Home Lending & Borrowing

Biden Administration Raises 2022 FHA Loan Limits

Written by Christopher G. Cox

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.

About the author


Christopher G. Cox

Christopher G. Cox has over 20 years of experience in the real estate and finance industries. He has understands the complexities and diversity of the real estate market, and he has a passion of helping people realize the American Dream.