December 1, 2021
There are higher FHA loan limits scheduled for the year 2022. The FHA and HUD have published two mortgagee letters explaining the new limits for purchase loans and reverse mortgages guaranteed by the FHA (known as FHA Home Equity Conversion Mortgages).
According to the HUD official site, the new forward mortgage loan limits for FHA loans in 2022 are available to view but do not take effect until the new year.
HUD.gov reminds readers that the FHA loan limit calculations include “a nationwide forward mortgage limit ‘floor’ and ‘ceiling’ for a one-unit property. In 2022 the floor is $420,680 (low-cost areas) and the ceiling is $970,800 (high-cost areas).
The floor is established at 65% of the national conforming loan limit of $647,200 for a single-unit home. For multi-unit properties in low-cost areas, the limits are:
- Two-unit: $538,650
- Three-unit: $651,050
- Four-unit: $809,150
For high-cost areas, FHA mortgage limits are established at 150% of the national conforming loan limit for 2022:
- One-unit: $970,800
- Two-unit: $1,243,050
- Three-unit: $1,502,475
- Four-unit: $1,867,275
And there are higher FHA loan limits for “special exception areas” including Hawaii, Alaska, Guam, and the Virgin Islands. These limits are:
- One-unit: $1,456,200
- Two-unit: $1,864,575
- Three-unit: $2,253,700
- Four-unit: $2,800,900
There are also plenty of areas that fall somewhere between the floor and the ceiling–a participating lender can help you determine what your FHA home loan limit should be based on the zip code in your area–so can a realtor or other mortgage professional familiar with FHA loans.
At the end of every year, the FHA and HUD publish updated FHA loan limits for the coming new year.
These limits are subject to review each year to determine whether housing markets across the nation need adjustments to the loan limits–there are high-cost areas, low-cost areas, and portions of the country with “typical” housing market costs.
The yearly review is not guaranteed to produce new FHA loan limits in every zip code–many stay the same year over year. Others do not.
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