Articles Published in: December 2021

December 2, 2021

Why Are FHA Home Loan Limits Higher In 2022?

FHA is required by a federal law known as the National Housing Act (NHA) (and its’ amendments found in the 2008 Housing and Economic Recovery Act) to establish FHA home loan limits. These limits are announced close to the end of the previous year in anticipation of the new year. Those limits are set at 115 percent of area median house prices, with a low-end limit (the “floor”) and an upper limit (the “ceiling”) for FHA loan limits. There’s an annual review of these limits to see if they should be adjusted due to economic factors or other variables. In the first week of December 2021, the Federal Housing Administration announced higher FHA loan limits for the year 2022, and those higher limits are effective for both forward mortgages/purchase loans | more...

December 1, 2021

FHA Loan Limits Increase In 2022

By Bruce Reichstein

There are higher FHA loan limits scheduled for the year 2022. The FHA and HUD have published two mortgagee letters explaining the new limits for purchase loans and reverse mortgages guaranteed by the FHA (known as FHA Home Equity Conversion Mortgages). According to the HUD official site, the new forward mortgage loan limits for FHA loans in 2022 are available to view but do not take effect until the new year. HUD.gov reminds readers that the FHA loan limit calculations include “a nationwide forward mortgage limit ‘floor’ and ‘ceiling’ for a one-unit property. In 2022 the floor is $420,680 (low-cost areas) and the ceiling is $970,800 (high-cost areas). The floor is established at 65% of the national conforming loan limit of $647,200 for a single-unit home. For multi-unit properties in | more...