2022 Twin Cities Loan Limits Updated

For many homebuyers owner-occupying a duplex is not only a way to reduce their own housing expenses but also to build long-term wealth.

One of the greatest appeals of taking this approach is the ability to use an FHA loan, which requires just a 3.5 percent down payment for an owner-occupied 2-4 unit building.

FHA is a government-sponsored mortgage insurance program. Several conditions must be met before it will grant a loan, including that the mortgage not exceed a preset amount. The good news is FHA recently announced its lending limits for the 7 county metro area, and like property values, they’ve risen.

FHA lending limits for 2022 are:

1 Unit Property – $420,680

2 Unit Property – $538,650

3 Unit Property – $651,050

4 Unit Property – $809,150

Meanwhile, conventional loan limits for 2022 have also been announced. Conventional loans for 2-4 unit properties usually require down payments of 20-25 percent. Please note while there are larger loans available for multifamily property, they often fall into the jumbo category which may require greater down payments or higher interest rates.

2022 Conventional Loan Limits

1 Unit Property – $647,200

2 Unit Property – $828,700

3 Unit Property – $1,001,650

4 Unit Property – $1,244,850

While the Federal Reserve has indicated they intend to raise interest rates beginning in the second quarter of this year, it is expected they will remain historically low.

It continues to be a great time to buy.