FHFA Raises Conforming Loan Limits for 2021
Time & Location
About the Event
The Federal Housing Finance Agency issued higher conforming loan limits for next year that “will help ensure homeownership remains within reach for countless American families,” NAR’s President Charlie Oppler says.
Some parts of the country will have a different loan limit. These are mainly high-cost areas where 115% of the local median home value exceeds the baseline loan limit. HERA establishes the loan ceiling in these areas as a multiple of the local median home value and caps the ceiling at 150% of the baseline loan limit. Since median home values generally grew in high-cost areas in 2020, the maximum loan limit in these locations was driven above the 150% threshold. This means that the new conforming loan limit for one-unit properties in most high-cost areas will be $822,375 (150% of $548,250).