BLOGPOST TAGS
Blog posted On December 01, 2020
Last Tuesday, the Federal Housing Finance Agency (FHFA) announced it is raising the conforming loan limits for loans securitized by Fannie Mae and Freddie Mac again in 2021. This year, the limit increased by 7.5%, marking the fifth straight year of loan limit increases.
Maximum Loan Amount for 2021
|
Units |
Contiguous States, District of Columbia |
Alaska and Hawaii |
|
1 |
$ 548,250 |
$ 822,375 |
|
2 |
$ 702,000 |
$ 1,053,000 |
|
3 |
$ 848,500 |
$ 1,272,750 |
|
4 |
$ 1,054,500 |
$ 1,581,750 |
Maximum Loan Amount for High-Cost Areas 2021
|
Units |
Contiguous States and District of Columbia |
|
1 |
$ 822,375 |
|
2 |
$ 1,053,000 |
|
3 |
$ 1,272,750 |
|
4 |
$ 1,581,750 |
In 2016, FHFA loan limits were increased for the first time in seven years. Since then, they have increased each year, reaching a total of $131,250 in limit increases over the past six years. By increasing loan limits, the FHFA makes home financing more accessible and home buyers are able to borrow enough to keep up with higher home prices.
Though loan limits have increased, most mortgage professionals still do not suggest taking out the maximum loan amount for which you are approved. It could stress your credit limit and you could overextend yourself financially when repaying the loan.
If you have any questions about the updated loan limits in your area, please let us know.
Sources: FHFA, HousingWire
