FHA Loan Limits Increase In 2022

December 11, 2021

At the end of every year, the federal government updates FHA loan limits for the coming new year. These limits are subject to an annual review to help determine whether housing markets across the nation need adjustments to loan limits.

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.

In 2022, FHA loan limits are going up--there are higher limits for purchase loans and FHA reverse mortgages scheduled for the year 2022. The FHA and HUD have published two mortgagee letters explaining the new limits.

Higher forward mortgage loan limits for FHA loans in 2022 are available to view on the FHA and HUD official sites but do not take effect until the new year. If you apply for an FHA mortgage your loan limit will depend on the date of the FHA case number assigned to the mortgage.

FHA loan limit calculations include “a nationwide forward mortgage limit ‘floor’ and ‘ceiling’ for a one-unit property. For the new year the floor is $420,680 (low-cost areas) and the ceiling is  $970,800 (high-cost areas) in 2022.

The FHA loan limit floor is 65% of the national conforming loan limit of $647,200 for a single-unit property, but multi-unit properties in low-cost areas have higher limits:
 

• Two-unit: $538,650
• Three-unit: $651,050
• Four-unit: $809,150

For high-cost areas (which also feature higher loan limits for multi-unit properties), FHA mortgage limits are established at 150% of the national conforming loan limit in 2022.
 

• One-unit: $970,800
• Two-unit: $1,243,050
• Three-unit: $1,502,475
• Four-unit: $1,867,275

“Special exception areas” including Hawaii, Alaska, Guam, and the Virgin Islands are more expensive and require additional consideration. The higher loan limits for these areas are:
 

• One-unit: $1,456,200
• Two-unit: $1,864,575
• Three-unit: $2,253,700
• Four-unit: $2,800,900

And what about areas of the USA with housing market prices somewhere between the floor and the ceiling? There are higher limits available in these cases too, much depends on where you want to buy.

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