Solano County Gets Higher Loan Limits for 2022: Now up to $647,200

Solano County home buyers got some good news earlier this month. Federal housing officials announced they would be increasing the conforming loan limits for Solano County, for 2022. The FHA limits will also be going up, starting on January 1, 2022.

This means that home buyers in Solano County have a higher level of mortgage financing available, without having to use a jumbo loan. The limits went up for other California counties as well.

Higher Loan Limits for Solano County in 2022

Solano County FHA and conforming loan limits have both gone up — and by a lot. In 2022, the maximum amount for a conforming (conventional) home loan will be $647,200. The maximum for an FHA-insured mortgage in 2022 will be $614,100. This applies to all of Solano County.

The numbers mentioned above relate to single-family homes, in particular. Housing officials have set higher limits for multi-unit properties, such as duplex and triplex properties. You’ll find all property types in the list below.

Conforming Loan Limits for Solano County, 2022

• One-unit: $647,200
• Two-unit: $828,700
• Three-unit: $1,001,650
• Four-unit: $1,244,850

FHA Loan Limits for Solano County, 2022

• One-family: $614,100
• Two-family: $786,150
• Three-family: $950,300
• Four-family: $1,181,000

Understanding the Terminology

The industry “lingo” being used here can be a bit confusing, especially for a first-time home buyer or mortgage shopper. So here’s a crash course in loan limit terminology.

Conforming: This label is used for mortgage loans that meet the size limits used by Freddie Mac and Fannie Mae. A conforming loan “conforms” to those standards, and can therefore be sold to Fannie or Freddie. This label is usually applied to conventional home loans that do not receive government insurance or backing.

FHA: An FHA loan is one example of a government-backed loan. The federal government insures these loans against losses related to borrower default. As a result, FHA loans tend to offer flexible qualification criteria and relatively low down payments, compared to some other mortgage options.

So there are two sets of loan limits for Solano County in 2022. One applies to conventional mortgages, while the other applies to government-backed FHA loans. And both have been increased due to rising house values.

Using a Jumbo Loan in Solano County

To add another layer to all of this, borrowers with sufficient income can qualify for a mortgage loan that exceeds the conforming loan limit for Solano County. They would do this by using what’s known as a “jumbo” mortgage product.

When you take out a mortgage loan for an amount that’s higher than the limits shown above, it’s referred to as a jumbo loan. And that’s totally do-able, as long as you have sufficient income and/or assets to qualify for the higher amount. In fact, jumbo loans are fairly common in the Bay Area due to the relatively high home prices we deal with.

Home Prices Continue to Rise

Solano County FHA and conforming loan limits were increased significantly from 2021 to 2022. Steadily rising home prices prompted housing officials to make this change. They raised the limits for most other counties across the U.S. as well, to varying degrees.

While Solano is the most affordable county in the Bay Area, home prices there have risen sharply over the past year. According to Zillow, the median home value in the Solano area rose by more than 20% in the past 12 months alone (as of December 2021).

The good news is that the median house price in the county currently falls below the 2022 FHA and conforming loan limits. That means borrowers should be able to find a suitable property without having to use a jumbo mortgage to finance it, if that’s their objective.

Of course, tight inventory conditions remain in effect all across the Bay Area. So it might be challenging to find a house to buy in Solano County. But the higher loan limits could work to the buyer’s advantage, making the house-hunting process a little easier.

Summary of Key Points

We’ve covered a lot of information in this article. Here’s a rundown of the most important takeaways:

• Solano County loan limits were increased for 2022 due to rising home prices.
• Both conforming and FHA limits went up, and by a substantial amount.
• The conforming cap for 2022 will be $647,200, for a single-family home.
• The maximum FHA loan amount for 2022 will go up to $614,100.
• It’s possible to borrow more than these amounts by using a jumbo mortgage.

Our company offers a broad range of financing options for Solano County home buyers and homeowners. Our broker-based model enables us to match borrowers with the best mortgage product for their needs. Please contact us if you have financing-related questions or would like to apply for a loan.