New FHA Loan Limits for 2022

In 2022, FHA loan limits will increase quite a bit. The new baseline limit will apply to most single-family homes and will be $420,680. This is a $65,000 increase from last year!


FHA Loans

An FHA mortgage loan is designed to help lower-income or lower-credit buyers become homeowners. The eligibility standards for an FHA loan are looser than traditional mortgage loans. These types of loans are credited for allowing imperfect buyers to secure family homes. They are an excellent option for homebuyers who may still be in the process of building their financial and credit profile. However, there are still certain requirements to qualify for FHA loans. These include factors like a credit score of at least 580 and a stable income/employment.

Also, it is worth noting that while FHA loans are considered a “Federal” program, one cannot be obtained without the help of a private lending/mortgage company.

Keeping Pace With Inflation

The Federal Housing Administration needs to keep pace with home pricing inflation, so raising FHA loan limits was a logical step. With these new higher limits, qualifying borrowers will have more choices when it comes to using their FHA financing. However, not every borrower qualifies for the maximum FHA loan amount. The amount a buyer receives approval for will depend on factors like credit score, debt to income ratio, and the amount of the down payment.

Low FHA Loan Rates

Just like traditional mortgages, FHA loans are still benefiting from the current low-interest rate. Mortgage rates are at historic lows, and loan limits are rising, so it’s the perfect time for homebuyers to seek FHA loans.


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