2022 Conforming Conventional Loan Limits Increased

As we approach the new year some big news was released that may help people purchase a more expensive property and save additional money during financing.


Conforming conventional loan limits are being increased to $647,200 effective January 1, 2022. Although, we are able to provide benefits for higher loan limits available TODAY.


The previous loan limit was $548,250, which makes the new limit a $98,950 increase. Since Direct Lenders, LLC is able to offer the most competitive rates on the market this gives us a great chance to help our borrowers even more. Let’s jump to the importance of this in today’s market.

Loan Officer Lloyd Fiedler

Lloyd Fiedler

Loan Officer

Why The Increase Matters

There are some very important reasons as to why this is a big deal. Since we have seen home prices increase tremendously it has put a large segment of people at risk of having no choice but to settle with a Jumbo loan program instead of a conventional loan program.


That is a problem because the guidelines and interest rates for the two type of programs vary drastically. In hindsight, going with a jumbo program will cost more money in the long run. Everything from the down payment to the closing costs will be higher for a jumbo in comparison to a conventional.


We are excited that the loan limit is following the market because this keeps people with the ability to finance their home at the best rate and following cost-saving specific financing guidelines.

Specific Examples

The new loan limit allows further funding then just $647,200. This is possible depending on how much a borrower decides to put down. For example:


  • 5% down with a sales price of $681,000
  • 20% down with a sales price of $809,000


To put this in perspective, with the previous conforming conventional loan limit a borrower putting 5% down would only be able to purchase a home with a sales price of $577,000. If we think about how home values have increased then that same home at $577,000 is now exceeding $600,000, so a borrower who could only throw 5% down previously wouldn’t be able to purchase the same home they would’ve been able to last year cause the price would get away from them. That opportunity changes with the new limit.


Need A Conforming Conventional Loan?


Let’s stop talking numbers and just understand that this limit is a great thing. My Direct Lenders team and I are ready to help you get the financing you need! I understand that you may have some lingering questions, so please feel free to call or text me at 404-421-8770. I am always happy to help and get you or your client the financing needed.


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