A jumbo loan could fit you like a glove if you’re buying a more expensive home and need to borrow more than the conforming loan limits allow. So, if you’re looking at an upscale property or simply one in an area of the country where the cost of living is high, here’s what you need to know about the jumbo loan limits in 2022.
Mortgages aren’t one-size-fits-all and jumbo loans are no exception. Essentially, a jumbo loan is a mortgage that exceeds baseline amounts set by Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) guidelines. Since jumbo loans do not have upper limits established by the agencies mentioned, it’s up to your lender to determine the ceiling amount for jumbo loan limits.
Minimum and maximum loan amounts
If you are wondering whether you’ll need a jumbo loan, you need to consider the limits set for conforming loans and U.S. Federal Housing Administration (FHA) loans. The agency-set maximum limits for these loans provide a baseline for jumbo loans.
Most parts of the country have one maximum loan amount for conforming loans. In some high-cost areas, such as Washington D.C. and certain California counties, the threshold for the maximum conforming loan is higher.
See our county-by-county chart below, which highlights all counties with 2022 conforming loan limits above the standard $647,200.
Those limits apply to conforming loans that follow Fannie Mae or Freddie Mac guidelines. A different loan limit kicks in if you’re buying a home in 2022 using an FHA loan, which is backed by the Federal Housing Administration. The maximum FHA loan limit for one-unit properties in low-cost areas in 2022 is $420,680, up from $356,362 in 2021. The maximum limit for one-unit properties in approximately 70 high-cost counties has been raised to $970,800, up from $822,375 in 2021.
Keep in mind, the Federal Housing Finance Agency may increase conforming loan limits again for 2023. If you are planning on taking out a mortgage loan in 2023, check back here for updates on loan limits.
Jumbo loan requirements
Because a jumbo loan means you’re taking out a larger-than-typical mortgage, lenders impose stricter requirements than they might for a traditional loan. They will examine several aspects of your financial health and things like your income to assess whether you can afford a bigger mortgage and if you are likely to pay it back on schedule.
Lenders will look at the following benchmarks:
Credit score: The minimum credit score required for a jumbo loan is typically 700.
Debt-to-income (DTI) ratio: Lenders look for a low DTI ratio, usually no higher than 43 percent.
Down payment minimum: While a 20% down payment may not be required for conforming loans, some lenders require 20% (or more) for jumbo loans.
They will also look for a good, steady income. This is because they want to know you can afford higher monthly payments and typically higher interest rates that come with jumbo loans as opposed to traditional mortgages.
What are jumbo loan rates?
Jumbo home loans come with a fixed rate which indicates the amount of interest you are charged in exchange for the amount lent by your financing company. Rates can vary and are influenced by individual factors and Federal Reserve benchmarks.
Now that you know more about jumbo loan limits, you can begin to determine if it’s your best choice for a mortgage. You’ll want to consider whether you will meet the requirements for a jumbo loan and if you will be able to handle the larger costs associated with a bigger mortgage.
If you are in the market for a bigger home, you might also be in the market for a jumbo mortgage. So, as you conduct your home search, keep an eye on current jumbo loan limits and possible changes to jumbo loan limits for 2023. Talking to a jumbo loan expert can help you decide if you should go big with your mortgage in order to go home.
This chart below shows 2022 jumbo loan limits in U.S. counties and territories with conforming loan limits above the standard $647,200.
2022 jumbo loans limit by area
El Dorado County, Placer County, Sacramento County, Yolo County
Santa Barbara County
San Luis Obispo County
San Diego County
Alameda County, Contra Costa County, Los Angeles County, Marin County, Orange County, San Benito County, San Francisco County, San Mateo County, Santa Clara County, Santa Cruz County
Adams County, Arapahoe County, Broomfield County, Clear Creek County, Denver County, Douglas County, Elbert County, Gilpin County, Jefferson County, Park County
San Miguel County
Garfield County, Pitkin County
Blaine County, Camas County
Calvert County, Charles County, Frederick County, Montgomery County, Prince George's County
Essex County, Middlesex County, Norfolk County, Plymouth County, Suffolk County
Dukes County, Nantucket County
Rockingham County, Strafford County
Bergen County, Essex County, Hudson County, Hunterdon County, Middlesex County, Monmouth County, Morris County, Ocean County, Passaic County, Somerset County, Sussex County, Union County
Dutchess County, Orange County
Bronx County, Kings County, Nassau County, New York County, Putnam County, Queens County, Richmond County, Rockland County, Suffolk County, Westchester County
Cannon County, Cheatham County, Davidson County, Dickson County, Macon County, Maury County, Robertson County, Rutherford County, Smith County, Sumner County, Trousdale County, Williamson County, Wilson County
U.S. Virgin Islands
St. Croix Island, St. John Island, St. Thomas Island
Summit County, Wasatch County
Alexandria City, Arlington County, Clarke County, Culpeper County, Fairfax City, Fairfax County, Falls Church City, Fauquier County, Fredericksburg City, Loudoun County, Madison County, Manassas City, Manassas Park City, Prince William County, Rappahannock County, Spotsylvania County, Stafford County, Warren County