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Bay Area FHA Loan Limits for 2022: They’ve Gone Way Up

Another year, another increase for Bay Area FHA loan limits. That has been the pattern for several years in a row now, and it seems that 2022 will follow suit.

At the end of November, the Department of Housing and Urban Development (HUD) announced the revised loan limits for FHA-insured purchase mortgages. The 2022 FHA loan limits for all Bay Area counties were increased, in response to rising home prices.

In 2022, the single-family FHA loan limit for most Bay Area counties will beĀ $970,800. The three exceptions are Napa, Sonoma and Solano counties, which will have lower limits next year. These figures apply to single-family purchase loans used by home buyers.

Bay Area FHA Loan Limits for 2022

Home prices across the U.S. rose substantially during 2021. According to the latest data from Zillow, the median home value in the U.S. rose by nearly 20% over the past 12 months alone.

As a result of this trend, housing officials raised the limits for both conventional and FHA loans going in 2022.

We covered the maximum amount for conforming loans in a previous article. Today, we’ll be focusing on the Federal Housing Administration (FHA) mortgage program in particular.

Here are the 2022 FHA loan limits for all nine Bay Area counties:

  • Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara: $970,800
  • Napa: $897,000
  • Solano: $614,100
  • Sonoma: $764,750
Note: These limits apply to single-family home purchases in particular. There are higher limits for multifamily properties (duplex, triplex, etc.). You can find those additional figures by doing a search on the HUD.gov website.

As you can see, the 2022 FHA loan limit for six of the nine Bay Area counties will be $970,800, for a single-family home. The three exceptions are Napa, Solano and Sonoma counties. Those three counties have lower median home prices when compared to more expensive areas like Alameda, Marin, San Mateo, and Santa Clara.

You’ll also notice that Solano County has a much lower FHA loan limit for 2022, compared to the other Bay Area counties. That’s because Solano County has a relatively affordable real estate market, at least by regional standards. The FHA loan limit for that county will go up to $614,100 in 2022.

Fast-Rising Home Prices Led to the Change

The 2022 Bay Area FHA loan limits were increased significantly over the previous year. For instance, the six counties in the first bullet point shown above rose from $822,375 in 2021, up to $970,800 in 2022. That’s an increase of more than $148,000 in just one year — the biggest we’ve ever seen.

Rapidly rising home prices are the main reason for this change. As mentioned earlier, the average house value in the U.S. surged by double digits in the last 12 months alone. That trend prompted federal housing officials to increase the conventional and FHA loan limits for 2022.

The San Francisco Bay Area has also experienced major price growth over the past year. As of December 2021, the median home value for the San Francisco-Oakland-Hayward metropolitan area had climbed above $1.3 million for the first time ever. That was a gain of roughly 17% from just one year earlier.

This explains the increase in Bay Area FHA loan limits for 2022. HUD increased the limits to keep up with rising house prices, and to follow the Federal Housing Finance Agency’s increase for conventional home loans.

How Much Can You Afford to Borrow?

It’s important for borrowers to understand that not everyone will qualify for the maximum FHA loan limit in the Bay Area. These are the official limits for the program, set by the federal government. The amount you’re able to borrow will depend on several factors, including your debt and income situation.

We recently published a related blog post on this subject. It explains how your “debt-to-income” ratio can influence the maximum amount you’re able to borrow toward a Bay Area home purchase. See article link below.

Read: How Much Can I Borrow for a Home Loan?

Mortgage questions? Located in the Bay Area, Bridgepoint Funding is your local mortgage company. We offer many different financing options, including conventional, FHA and VA. Please contact us if you have mortgage-related questions or to apply for a loan.

Mike Trejo

Mike Trejo is a Bay Area mortgage broker with 20+ years of knowledge and experience.

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