Conventional Conforming Loan Limit Raised to $647,200*

By December 8, 2021December 6th, 2022Announcements, Mortgage and Residential

*Please contact Capitol Bank for current conventional conforming loan limit as of current date.


U.S. house prices rose 18% from the third quarter of 2020 to the third quarter of 2021, according to the Federal Housing Finance Agency House Price Index (FHFA HPI®). In some cases, the prices of high-value homes have exceeded the traditional lending limits, leaving many borrowers wondering about their purchasing power and ability to get approved for a mortgage. On November 30, 2021, the FHFA released a national bulletin addressing just this issue.

Effective January 1, 2022, the FHFA has raised the Conventional Conforming Loan Limit on a single-family home to $647,200.

What does this mean? Basically, the government is acknowledging the steep increase in homes values and is giving greater purchasing power to consumers by increasing the maximum lending limits allowed by banks. Raising this limit in conventional conforming loans will significantly help consumers with high value home purchases in our area. This will enable more borrowers to qualify under the conforming loan amount versus a jumbo loan, which typically has higher interest rates. It will also make it easier for individuals looking to refinance and consolidate loans, while interest rates on home mortgages remain at historically low levels.

Contacting Capitol Bank’s Mortgage Team
Contact us today if you’re interested in speaking with one of our mortgage lenders about this news regarding conventional conforming loans, or for any other mortgage lending services. Amy and Cori have been the faces of our mortgage team together for over a decade and are trusted experts in mortgage lending in the Greater Dane County area. Please CLICK HERE to connect with our mortgage team. Amy or Cori will be in touch with you!

All mortgage loans are subject to underwriting approval. Capitol Bank is Member FDIC and an Equal Housing Lender.

Amy Gile-Enge, SVP/Mortgage Lending NMLS #586017
Cori Femrite, AVP/Mortgage Lending NMLS #594085