Mississippi Mortgage Company Comments On Increase In Conforming Loan Limits For 2022

JTS & Co., a mortgage company from Mississippi, is informing existing and potential clients about the increase in conforming loan limits that were announced by the Federal Housing Finance Agency (FHFA) on 30th November 2021.

Fannie Mae and Freddie Mac are restricted by law to only purchase single-family mortgages with origination balances below a specific amount which is known as the conforming loan limit (CLL). Thus, the conforming loan limit is applicable for all mortgages to be acquired by the two government-sponsored enterprises (GSEs). The limit for one-unit properties has been changed from the previous value of $548,250 that was applicable throughout 2021 and has been increased to $647,200 for the following year, 2022. This loan limit increase is applicable to all contiguous states, the District of Columbia, and Puerto Rico. It is not applicable in four statutorily designated high-cost U.S. counties or county equivalents namely Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

Fannie Mae and Freddie Mac are bound by the formula established under The Housing and Economic Recovery Act of 2008 (HERA) to adjust the baseline CLL every year to reflect the October-to-October percentage change in the average house price across the country. According to the nominal, seasonally adjusted, expanded data third quarter 2021 FHFA House Price Index (FHFA HPI) report, house prices have increased 18.05 percent, on average, between the third quarters of 2020 and 2021. The change in the baseline CLL for 2022 was, therefore, made to reflect this increase and set at the same percentage as the increase in house prices.

High-cost areas have a different applicable loan limit which is higher than the baseline loan limit. Areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, HERA establishes the high-cost area limit as a multiple of the area median home value, while setting a ceiling at 150 percent of the baseline limit. Therefore, the new ceiling loan limit for one-unit properties in high-cost areas will be $970,800, which is 150 percent of $647,200.

A spokesperson for JTS & Co. commented on the brand new conforming loan limits for 2022 by saying, “With the increase in conforming loan limits, our clients can now aim for the dream home that was, thus far, financially just a little out of reach for them. You can now enjoy the convenience of a larger mortgage that will let you afford the home that you always had on your mind but the asking price for which did not enable you to remain within conforming loan limits and reap the accompanying benefits. You can now benefit from a lower APR on a larger mortgage value which will reduce the total amount that the loan will cost you including the lender’s fees. You also won’t have any residency restrictions apply to your purchase which means that you can confidently go ahead and buy that second home or investment property. When you have made up your mind regarding your next home purchase and are finally ready to pull the trigger, give our office a call. We will help you with a wide range of services such as buying a home, refinancing, or drawing cash from your home equity. You will be hard-pressed to find another mortgage service that offers a more streamlined process at lower rates and service as amazing as ours.”

Applicants can prequalify for the company’s services in two seamless and convenient ways. They can either speak with one of the company’s highly trained specialists that will help the applicant along its fast and streamlined mortgage process or they can use an online resource that offers a stress-free way to go through the application process at one’s own pace. Both methods offer the applicant the same incredibly low rates along with top-notch customer service. The company maintains complete transparency throughout the entire process and never forces the customer to speak to aggressive salespeople.

Readers can contact the company at the phone number (662) 329-9090 or view the company Facebook page to stay updated with all the relevant news.


For more information about JTS & Co. - NMLS #55275, contact the company here:

JTS & Co. - NMLS #55275
Tyler Farnham - NMLS#1450553
(662) 329-9090
4158 Hwy. 45 North,
Columbus, MS 39705