Conforming Loan Limits Have Increased for 2022

If you are shopping for a home in Indiana this year, it is important to know that the conforming loan limits have increased compared to last year.

You can read the announcement that the Federal Housing Finance Agency (FHFA) posted regarding the new limits here. The FHFA explains, “According to the nominal, seasonally adjusted, expanded-data FHFA HPI [report], house prices increased 18.05 percent, on average, between the third quarters of 2020 and 2021. Therefore, the baseline [conforming loan limits] CLL in 2022 will increase by the same percentage.”

It is excellent that the conforming loan limits are higher this year, because it means more flexibility for homebuyers. You are more likely under this year’s conforming loan limits to be able to buy a home with a conforming mortgage than you would have been had the limits stayed the same as they were in 2021.

Here are the 2022 Conforming Loan Limits

Below are the conforming loan limits for the entire country:

Number of Units	Contiguous US	Alaska and Hawaii
1	$647,200	$970,800
2	$828,700	$1,243,050
3	$1,001,650	$1,502,475
4	$1,244,850	$1,803,000

What Do These 2022 Conforming Loan Limits Mean for Customers in Indiana?

There are some high cost counties in other states where there are higher conforming loan limits. But Indiana does not contain such counties. The limits you see above for “contiguous US” apply in every county in IN. For an example, perhaps you want to buy a single unit home in Indiana. If you are borrowing up to $647,200, you can apply for a conforming loan. But to borrow a higher amount of money, you would have to apply for a non-conforming mortgage instead, also called a “jumbo loan.”

For comparison, the conforming loan limit for a single unit home in 2021 was $548,250. So, the increase to $647,200 is quite significant.

 Say you were trying to buy your home in December of 2021, for example, and needed to borrow around $600,000. Had you applied for a mortgage at that time, you would have had to go for a jumbo loan.But if you were looking to borrow that same amount this year, you would fall well within the conforming loan limits for 2022.

Your Mortgage Experts in Merrillville and Beyond!

The experts at Lake Mortgage are here to help you decide which lending product may fit your needs. Plus, we can also tell you more about other types of mortgages we offer, like USDA, VA and FHA. If you are ready to begin the process, please call (219) 756-5626 to schedule your consultation.