October 28, 2021
What do you need to know about FHA home loan limits in 2022? It may sound a bit early to be discussing FHA loan limits by county, but at the beginning of 2021, potential FHA borrowers were treated to the news that FHA limits would be higher for the new year, giving many a chance to get more home loan for their efforts.
What do you need to know about FHA home loan limits for the coming new year? We’re just over 60 days away at press time, 2022 will be here sooner than you realize!
FHA home loans feature loan guaranty limits established every year, set by county. These are annual limits and are revised or considered for revision over the year before.
There are no guarantees that the new year’s loan limits will equal the previous years and there is no guarantee that FHA loan limits will go higher with each successive year.
The FHA and HUD set FHA loan limits for areas considered to be typical-cost housing markets. FHA loan limits are also established for high-cost counties and low-cost areas.
You may notice some states have similar FHA loan limits in most counties, but with an occasional high-cost or low-cost market.
You may also notice that some housing markets such as California may have more high-cost counties than low-cost ones. East Coast real estate markets are known for those (though much depends on the location in question. FHA loan limit rules are designed to accommodate more expensive housing markets, too.
First-time home buyers unsure where to find the FHA loan limit have a variety of resources to use to explore those loan limits.
Some borrowers aren’t sure which county they’ll wind up purchasing a home in before they decide. That is why it pays to become familiar with the surrounding markets in your area. You just never know what you may need to consider.
House hunters have resources on the FHA official site and elsewhere to help them look up the FHA loan limits by state. You can get a list of the loan limits for the surrounding area and see how much multi-unit loans go for there, too.
Are you thinking about a more specialized mortgage like a 203(k) rehab loan or an FHA One-Time Close Construction Loan? An FHA lender can help you determine a budget for the project to give you an idea of the size of the loan you might require to get the work done.
FHA home loan limits change annually, but if you got an FHA case number assigned in the previous year, that FHA loan limit applies.
FHA loan limits, as revised for the new year, are applicable only to case numbers assigned on or after 1 January each year. Those limits expire at the end the year they were approved for, though you may find some areas have the same limits year after year.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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