Finance of America Mortgage LLC (FAM), a Finance of America Companies Inc. mortgage originations subsidiary, has announced an interim increase in estimated 2022 conforming loan amounts to $625,000 for conventional single-family loans. It is also allowing higher limits for high-cost areas and homes with additional units.
The change, which goes into effect across all of FAM’s lending channels, comes ahead of the November announcement on conforming loan limits from the Federal Housing Finance Agency (FHFA). It increases the maximum loan limit in certain markets by more than $75,000 for one-unit homes and nearly $150,000 for four-unit homes. As a result, some qualifying borrowers may be able to qualify for conventional pricing with lower interest rates instead of relying on a jumbo mortgage, which typically has more stringent qualification guidelines.
“We want to help alleviate some of the barriers to entry and heavy burden that comes with ever-increasing home prices and continues to push the dream of homeownership further away from reach for many first-time buyers,” says Bill Dallas, president of FAM. “Increasing the estimated maximum loan amount on our conforming loans gives purchase and refinance borrowers expanded access to mortgage credit at lower rates.”
Once the FHFA announces its 2022 conforming loan limits in late November, FAM will quickly adopt the new guidelines.