December 31, 2021
What do you need to know about home loans in 2022? There are a few things to keep in mind that may affect your planning and choices about a new mortgage or refi loan. Here are some issues to think about going into the new year:
FHA Loan Limits Are Higher In 2022
FHA loan limits go up in most markets, but there are some areas where the limits may not necessarily change. Keep in mind that there are high-cost markets AND low-cost housing markets.
\Depending on where you are house hunting the limits may be different than what you are used to–it’s a great idea to check the limits ahead of time to get an idea of what to expect.
Interest Rates May Rise In 2022
With the Fed discussing its next moves in terms of things such as “quantitative easing” and a change in current policy toward supporting the economy through its purchases of Treasuries and other measures, it’s important to anticipate a possible rise in rates and what that could do to your bottom line over the lifetime of the mortgage.
Buyer’s Market? Or Seller’s Market?
If there is a lack of housing inventory in your current housing market, that could increase demand for the homes that are for sale there, hence potentially inflating property values and house prices.
It’s smart to do some homework in this area.
You can always ask a real estate agent about current conditions to get a read on that housing market at the time you want to know, but keep in mind that conditions are subject to change and if you wait too long between your initial research and your actual house-hunting efforts, conditions may be different.
Credit Scores And Other Requirements
The basic rules for qualifying an FHA borrower haven’t changed, but there are more tools than ever for consumers to work on their credit, monitor it, and contest identity theft issues that may crop up in your credit reports.
If you need to work on your credit, 2022 is a great time to be doing so. It’s never too early to begin improving your scores and every potential or future borrower should do so at least one year in advance of the home loan application whenever feasible.
Some FHA loan rules may make it easier in 2022 to buy condo units, manufactured homes, etc. but you will need to see if your chosen participating lender offers these loans in your area.
Not all lenders choose to offer all FHA mortgage products–it never hurts to ask early.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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