Conforming Loan Limit Increase for 2021

SIRVA
Relocation Services
Global Services
Conforming Loan Limit Increase for 2022: What it Means for US Transferring Employees

Whether your employees are heading across the country or crossing continents, Sirva has the on-the-ground international relocation services you need. From Canada to Australia and everywhere in between, we understand the nuances across each region .

We provide offerings to satisfy your unique needs, whether selling a home in the U.S., managing a cross-country household goods move, or helping employees to get settled into their new homes in Europe. Our global experience means that you can count on seamless international relocation, no matter what’s next.

Departure Services

From the initial policy consulting call through the move itself, there are a lot of moving pieces associated with employee relocation. Whether planning a domestic or international relocation, SIRVA is expertly positioned to offer the best departure services available during a relocation in every region around the world.

Destination Services

Setting your employees up for success upon arrival at their new locations will be key to successfully meeting your company’s goals. SIRVA’s global network and expansive resources allow us to you achieve your goals. Our destination services and international movers help employees and their families settle in and prosper in their new homes.

Visa and Immigration

SIRVA’s team of experienced international relocation specialists are expertly equipped to manage inbound and outbound global immigration services. With SIRVA’s Immigration team, the focus is on providing a smooth customer experience that enhances the relocation process, not just achieving a successful application.

Employee Counselling

For your employees, a single relocation professional assists with end-to-end coordination of services: a relocation consultant for domestic/intra-country moves or global assignment consultant for international relocation. These consultants are your employees’ resource for all communication and services relating to their move, and coordinate the delivery of all authorised services. Regardless of the service being delivered (temporary housing, moving services, etc.), the employee can rely on the consultant as their go-to resource to address any concerns.

VIP Services

If you are searching for an enhanced service for your employees, SIRVA offers VIP services such as personal relocation assistants, in-home cleaning services, personalised family assistance, and many other tailored and luxury enhancements.

Related Services

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*Please note that this is an updated version for 2022. The original blog was posted on 8 January 2021.

What You Need to Know About the Conforming Loan Limit Increase for 2022

In November of 2021, the US Federal Housing Finance Agency (FHFA) announced That the conforming loan limit for Fannie Mae and Freddie Mac will increase from $548,250 to $647,200 in 2022. This marks the sixth consecutive year of an increase.

What is the Conforming Loan Limit?

The conforming loan limit is the maximum loan amount for one-unit properties that can be guaranteed and purchased by Fannie Mae and Freddie Mac. A loan amount higher than the conforming loan limit is considered a jumbo loan.

How is the Conforming Limit Determined?

The US Housing and Economic Recovery Act of 2008 (HERA) requires that the conforming loan limit be adjusted each year to reflect the change in the national average US home price. According to FHFA, home prices increased 18.05% on average between 2020 and 2021, so the conforming loan limit will increase by the same percentage. This is the largest increase since 2008.

What Does this Mean for Transferees?

This is good news for organisations with US transferees or assignees who are hoping to purchase a home in the United States. An increase in the conforming loan limit means employees can borrow an additional $98,950 without requiring a jumbo loan, which is typically more difficult to qualify for and requires more documentation than a conforming loan.

How Does This Affect High-Cost Areas?

A high-cost area is a location in which 115% of the local median home value exceeds the conforming loan limit. In these high-cost areas, the conforming loan limit can go up to a ceiling of $970,800 (150% of $647,200).

In any given year, there are roughly 150-200 counties in the USA that are considered high-cost areas, and many employers need to entice employees to relocate to these locations. Some examples include areas in the vicinity of New York City, the San Francisco Bay Area, as well as Washington D.C. and surrounding counties. The increase of the conforming loan limit may put these areas within reach for some employees through easier-to-obtain financing.

Whatever the financing needs of your transferees may be, SIRVA Mortgage is here to help. With over 25 years of focus and expertise in relocation mortgage lending, we understand the important role home financing plays in the relocation process. Please visit our mortgage website to learn more, or contact us, at MortgageClientServices@sirva.com.

Notice and Disclaimer:

SIRVA Mortgage, Inc. (NMLS Unique Identifier# 2240) is engaged in the business of originating residential mortgage loans. We are licensed or authorised to conduct mortgage loan origination in all 50 US states plus the District of Columbia. SIRVA Mortgage is not a depository institution and does not act as or represent itself a full service bank. Reference to the term “mortgage banker” is a common, accepted industry term referring to companies engaged only in the business of making mortgage loans. Various state laws and regulations and our individual licence in various states refer to us as a mortgage lender, mortgage banker or mortgage broker. For our Privacy Policy and Affiliated business relationships please visit https://mortgage.sirva.com/about/about-sirva-mortgage. Call 800-531-3837 for more information. SIRVA Mortgage, Inc. is licensed by (amongst others): Arizona Licensed Mortgage Banker, Licence #BK-901430; Licensed by the Department Corporations under the California Residential Mortgage Lending Act, Lender Licence #413-0944; Georgia Residential Mortgage Licensee #6221; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company, Licence # SL.0000368; Massachusetts Mortgage Lender, Licence #ML1341; Licensed by the Mississippi Department of Banking and Consumer Finance, Mississippi Licensed Mortgage Company #369/2009; Missouri Residential Mortgage Licensee; Montana Mortgage Lender Licence #39706, Licensed by the New Hampshire Banking Department; Licensed by the New Jersey Department of Banking and Insurance; New York Licensed Mortgage Banker by the N.Y. State Banking Department; Ohio Mortgage Broker Licence #MB.803887.000; Licensed by the Pennsylvania Department of Banking; Rhode Island Licensed Lender; Texas Mortgage Lender, Licence # 44605; Licensed as a Mortgage Lender by the Virginia State Corporation Commission, licence #MC-310. This is not an offer of credit or an offer to enter an interest rate lock-in agreement nor is this notice of loan approval. Main Office of SIRVA Mortgage, Inc.; 6200 Oak Tree Blvd., Ste 300, Independence, OH 44131; Telephone: 1-800-531-3837.

Contributors:

Cheryl Pfaffenberger, Director, Client Services

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