Conforming Loan Limits Increase For 2021

Conforming Loan Limits Increase For 2021

The Federal Housing Finance Agency recently announced the new 2021 conforming loan limits for Fannie Mae and Freddie Mac. The new mortgage limit for a base 1 unit property is $548,250, with select high-cost locations even greater. This is over a 7% increase from last year's limit of $510,400 and marks the fifth year in a row of increases.

The conforming loan limits for Fannie and Freddie are determined by the Housing and Economic Recovery Act of 2008, which established the baseline loan limit at $417,000 and mandated that, after a period of price decreases, the set mortgage limit cannot rise again until property values return to pre-decline levels.

For high-cost areas, where 115% of the local median home value exceeds the baseline conventional loan limit, the maximum loan limit goes up to $822,375 for 1 unit properties. Many locations in California like San Francisco, San Diego, and Los Angeles fall into these designated "high-cost" locations. Buyers can find the complete state list of 2021 conforming loan limits here.

Most States
High Cost

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