Coming in just second to the increase seen in 2006, the 2022 conforming loan limits are out and available for use nearly 2.5 months earlier than expected. That really is AWESOME news!! While limitations do apply, this can translate with approved credit the ability to buy an owner occupied single family home for $657,890 with 5% down, $694,440 with 10% down on a second home, and $781,250 for investment purchases with 20% down. This applies to all counties in Alabama and Florida, if you are outside this area it may be different.
The advantage isn't just for those buying but for those buying to renovate, owners who want to renovate their existing home, or anyone building new construction using construction to permanent financing this is big news.
Announcements on USDA and FHA limits are expected to be on time in the final weeks of this year so check back with us on those.
If you want to know what this looked like in 2021 click here.
To learn more about renovation mortgages versus cashout-refinancing click here.
For ins and outs of residential construction financing click here.
Do you have questions, email Questions
Please note purchase prices listed above are rounded down to the nearest $10 based on standard program maximum loan to values. Exceptions apply. Nothing here constitutes an offer for financing and any information is based on approved credit. For additional rate and cost information email email@example.com NMLS # 835698. Equal Housing Lender.
November 19th, 2020
Projected Loan Limit Size: - According to a detailed analysis this week posted by Matthew Graham COO of Mortgage News Daily just a few days ago the nationwide Conventional loan limit is projected to increase roughly $40,000 to around $550,000 for single family dwellings. While the formal announcement is set to be released next Tuesday November 24th, for Florida and Alabama this means an increase from $510,400 in 2020 to an estimated projection of $550,000 in 2021. Any increase is always a positive for the general housing market even if you don't have a loan at all but given that many of us are spending more time at home and have increased needs for our families this impacts many people who have or plan to get a conventional loan in a good way that maybe it hadn't prior to 2021 especially since rates are where they are. We will be posting some more breaking news regarding rates and products since the volatility that has been 2020.
While we don't have time to explain the many was this increase is a big deal, the impact directly impacts VA and jumbo loans as well. Since VA entitlement is based on this limit, veterans get that additional affordability on refinances and purchases. For some who were we stuck buying or refinancing with only a jumbo option any years prior to 2020, this will certainly translate to more availability of options, better rates, and possibly higher LTVs which is never bad.
If you want to know how this change might help you, please email us or submit an online application on our secure website. Exciting times!!!!
Quick note: We have been very busy in 2020 and haven't had much time to post to this blog but we have hired more staff and will ramp up the flow of information to the public starting today November 19th, 2020.