Key highlights from this report:
- The maximum FHA loan amounts for 2022 range from $420,680 to $970,800.
- This applies to loans with case numbers assigned on or after January 1, 2022.
- These limits can vary by county, because they are based on home prices.
- In Alaska, Hawaii, Guam and Virgin Islands, the new cap will be $1,456,200.
- The maximum FHA mortgage was increased substantially over the 2021 limits.
- You can find the maximum for your particular county on the HUD.gov website.
The Department of Housing and Urban Development recently announced the maximum FHA loan amounts for 2022. That announcement brought good news for home buyers who plan to use this program next year.
Starting in January of 2022, the maximum FHA loan amount will go up significantly.
Maximum FHA Loan Amount for 2022
Another year, another increase for loan limits across the U.S.
Steadily rising home prices have prompted federal housing officials to increase the maximum FHA loan amount for 2022. This change will give borrowers more financing room to work with, when it comes to house hunting.
For most counties across the U.S., the revised loan limit will increase to $420,680. That’s for a single-family home purchase. In more expensive real estate markets (like many in California), the maximum FHA mortgage amount for 2022 will be $970,800.
Many counties fall somewhere in between these “floor” and “ceiling” limits. To find the maximum FHA mortgage amount for your particular county, you can use HUD’s searchable database located here:
https://entp.hud.gov/idapp/html/hicostlook.cfm
The Department of Housing and Urban Development (HUD) announced these changes on December 1. They will take effect on January 1, 2022, for loans with case numbers assigned on or after that date.
HUD also announced some special exceptions for remote areas like Alaska, Hawaii, Guam and the U.S. Virgin Islands. In these areas, the maximum FHA loan amount for 2022 will be $1,456,200, for a single-family home.
Here is the maximum FHA mortgage size for low-cost area, high-cost areas, and special exceptions.
Low-Cost Areas
The following limits apply to most counties across the U.S.:
- One-unit: $420,680
- Two-unit: $538,650
- Three-unit: $651,050
- Four-unit: $809,150
High-Cost Areas
The following limits apply to expensive areas like San Francisco and NYC:
- One-unit: $970,800
- Two-unit: $1,243,050
- Three-unit: $1,502,475
- Four-unit: $1,867,275
Special Exception Areas
The following limits apply to Alaska, Hawaii, Guam and the Virgin Islands:
- One-unit: $1,456,200
- Two-unit: $1,864,575
- Three-unit: $2,253,700
- Four-unit: $2,800,900
It bears repeating: Many counties across the U.S. have a maximum FHA loan amount that falls somewhere in between the low-cost and high-cost limits shown above. The HUD.gov website offers a searchable database with limits for all counties in the U.S.
No Other Major Changes Expected
As we mentioned in a previous report, we do not expect any other major changes regarding FHA loan requirements in 2022. Most of the other criteria for borrowers (credit scores, down payments, etc.) will remain the same as they’ve been in the past — at least for now.
Here’s an overview of the basic requirements for this program, updated for 2022.
Of course, HUD could make additional program changes sometime during 2022. If that happens, we will update our site accordingly and also provide updates through the blog.
Big Home-Price Gains Over the Past Year
The maximum FHA loan amount for 2022 got a major boost over the 2021 limits. For instance, the baseline for most U.S. counties rose from $356,362 in 2021, up to $420,680 in 2022. That’s a year-over-year increase of more than $60,000.
Why the big increase? In short, home prices.
House values in the U.S. have skyrocketed over the past 15 months or so. According to Zillow, the median home value in the U.S. rose by more than 19% over the past year alone.
The chart above shows the median house price in the U.S. over the past ten years or so. Notice how the line gets steeper over on the right side, during 2021. That’s when home-price appreciation shifted into turbo mode.
This is why housing officials have increased the maximum FHA mortgage amount for 2022. They’ve done it so that borrowers will have an easier time finding a suitable property within the official loan limits.