Summary: In 2022, the conforming loan limits for all Dallas-area counties will go up to $647,200. Anything above that is considered a jumbo mortgage. The FHA loan limit for the DFW area has been increased to $420,680 for 2022.
Home buyers across the Dallas-Fort Worth metro area will have a higher range of mortgage financing to work with in 2022, due to a recent increase in loan limits. Both conforming and FHA limits for the DFW area have been increased for 2022 in response to rising home prices.
What does this mean to you, as a home buyer and borrower? Read on to find out.
Dallas-Fort Worth Loan Limit Increased for 2022
Most of the mortgage loans available today have a maximum amount or limit for borrowers. This is true for conventional (or “regular”) mortgage loans, as well as the government-backed programs like FHA. Borrowers who wish to use a particular home loan program have to stay within these limits, with a few exceptions.
This can be a confusing subject if you’re new to it. So let’s take it one program at a time.
Conforming Loan Limit Increased to $647,200
A conventional mortgage loan is one that is not insured or guaranteed by the government. The term “conventional” is used to differentiate these products from the government-backed programs like FHA and VA.
Now let’s break it down further.
In terms of their size, conventional loans can either be conforming or jumbo.
- A conforming loan is one that meets the guidelines and parameters established by the Federal Housing Finance Agency (FHFA). It can be sold into the “secondary” mortgage market via Freddie Mac and Fannie Mae. It conforms to their standards, hence the name.
- A jumbo loan, on other hand, exceeds the conforming loan limit for the county where the home is located. Therefore, it cannot be sold to Fannie or Freddie.
Federal housing regulators determine the conforming loan limits for the Dallas-Fort Worth area, and for the rest of the country. Subsequently in 2022, those limits will be going up due to rising home prices nationwide.
In November, the FHFA announced that “the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2022. In most of the U.S., the 2022 maximum conforming loan limit (CLL) for one-unit properties will be $647,200, an increase from $548,250 in 2021.”
In 2022, the conforming loan limit for a single-family home in the DFW area is $647,200.
This applies to all counties within the Dallas-Fort Worth-Arlington metropolitan area (a.k.a., DFW metroplex). Collin, Dallas, Denton, Ellis, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant and Wise counties all have the same conforming loan limit for 2022 — $647,200.
Jumbo Mortgage Threshold Going Up as Well
Home buyers with sufficient income can borrow more than the DFW conforming loan limit mentioned above. In industry lingo, this financing option is referred to as a “jumbo” loan.
In 2022, a jumbo loan in the Dallas-Fort Worth area is anything above $647,200.
Jumbo mortgage products tend to have stricter criteria, due to the larger amount being borrowed. Borrowers seeking a jumbo loan in Dallas must show that they have enough income to manage the monthly mortgage payments, along with other recurring debts. This is true for all mortgage loans, but the “bar” is typically set higher for jumbo loans due to their larger size.
Maximum FHA Loan Amount for Texas: $420,680
The Federal Housing Administration (FHA) loan program has its own unique set of loan limits. These mortgage loans are originated by lenders within the private sector, as with conventional. Unlike conventional mortgage products, FHA loans are insured by the federal government.
The Department of Housing and Urban Development (HUD) oversees the FHA program. In early December, HUD officials announced that the FHA loan limits for the DFW area — and most other counties across the U.S. — would be increased for 2022.
The 2022 FHA loan limit for the state of Texas will be $420,680, a slight increase from the 2021 limit of $411,700. That’s for a regular single-family home with only one residence. There are higher limits for duplexes and other multifamily properties.
Here are the DFW FHA loan limits for 2022, across all property types:
- One-family: $420,680
- Two-family: $538,650
- Three-family: $651,050
- Four-family: $809,150
As with the conventional caps above, these FHA limits apply to all counties across the DFW metroplex. That includes the counties of Collin, Dallas, Denton, Ellis, Hunt, Johnson, Kaufman, Parker, Rockwall, Tarrant and Wise.
In conclusion, the 2022 FHA and conforming loan limits for the Dallas-Fort Worth area, along with the revised jumbo loan threshold.