2022 Mortgage Loan Limits for Florida, Alabama, Tennessee, and Texas have increased!
2022 mortgage loan limits are on the rise, but it’s not the same maximum mortgage amount for all programs. In fact, USDA, VA, FHA, and Conventional loan programs each have their own limits and qualifying parameters.
In today’s post, we will quickly review the 2022 Mortgage Loan Limits for USDA, VA, FHA, and Conventional loan.
Plus, in order to help you stay organized, we’ve created a FREE Loan Comparison Chart for you to download. It compares each loan programs side-by-side and is contained in one simple chart… Download it now!
What is a Maximum Mortgage Loan Limit?
To begin, a mortgage loan limit is the maximum amount a home buyer can borrow under a specific mortgage program. Just remember, a loan limit applies to the loan amount and not the home’s sales price.
2022 USDA Maximum Loan Amount in Florida, Alabama, Tennessee, and Texas.
Believe it or not, there is actually no USDA Maximum Loan Amount in Florida, Alabama, Tennessee, and Texas. Hold on a second, is this a joke? Believe it or not it is true!
USDA maximum loan amounts are based on the borrower’s USDA loan qualifying ability. Since there is no set maximum sales price for a USDA loan, this also means NO maximum USDA mortgage amount!
Thankfully, USDA income limits also increased earlier in 2021. This recent USDA income limit increase results in making it easier for homebuyers who are trying to qualify for higher priced homes.
Thus, without a loan limit a USDA mortgage can be a powerful option!
2022 Maximum VA Loan Amount in Florida, Alabama, Tennessee, and Texas.
Maximum VA loan limits depend on whether or not you have used your full entitlement.
To have full entitlement you must never have used your VA home loan benefit or have paid a previous VA loan in full (including after a bankruptcy, foreclosure, or a short sale.) In these cases there is no maximum VA mortgage loan limit!
On the other hand, if you have used some of your entitlement, but have funds remaining, your VA home loan limit is now the same as the Federal Housing Finance Agency (FHFA). Meaning, they are based on the county loan limit where the property resides.
Calculating 2022 Maximum VA Loan Amount in Florida, Alabama, Tennessee, and Texas can be complicated, so if you have any questions just call or email so we can go to work for you!
Conventional Loan Limits for 2022 (Fannie Mae and Freddie)
Conventional loan limits are established by the FHFA (Federal Housing Finance Agency) and ultimately can vary based on you county. That being said, home prices rose an average of 18.05% across the nation, and in turn the lending limits for conventional loans have also increased.
Previously, the 2021 general loan limit was $548,250. Now in 2022, the baseline conventional loan limit has increased to $647,200. As a result Conventional Loan Limits for 2022 saw a whopping increase of $98,950 for a 1-unit property!
However, this number has increase even more for those areas which are considered “high-cost”.
For more information go to the Federal Housing Finance Agency’s (FHFA) announcement.
2022 Maximum FHA Loan Amount in Florida, Alabama, Tennessee, and Texas.
HUD announced on November 30, 2021 that it would increase FHA loan limits in 2022. These new maximum FHA loan amounts for calendar year 2022 are effective for case numbers assigned on or after January 1, 2022.
Overall, the maximum FHA standard low-cost area mortgage loan limit for a one-unit property has increased from $356,362 in 2021 to $420,680 in 2022! Additionally, the respective loan amounts have also increased for 2,3, and 4 unit properties that are eligible for FHA financing. They are listed here:
- One-unit property: $420,680
- Two-unit property: $538,650
- Three-unit property: $651,050
- Four-unit property: $809,150
As a reminder high cost area limits allow for even higher maximum FHA mortgage loan limits.
For a complete list of FHA loan limits visit the FHA’s loan limits page, here.
We Are Here for You!
As you can see, mortgage loan limits vary across loan programs. However, there’s no need to be overwhelmed. Let our experience be your resource!
Whether it be USDA, VA, FHA, or Conventional, simply call or email to discuss your scenario and let us show you the “Metroplex” difference!
(800)806-9836 Ext. 280