FHFA Conforming Loan Limits Rise 7% for 2021, Reflecting Hot Housing Market
As home prices rise, the Federal Housing Finance Agency announced that it would once again raise loan limits for mortgages backed by Fannie Mae and Freddie Mac.
The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, said the increase was based on its House Price Index for the third quarter. Since Spring, the housing market has been on fire — inventories are tight, buyer demand is strong and mortgage rates have fallen to record lows.
Nationwide the 2020 conforming loan limits are going from $510,400 to $548,250 for a single-family home in 2021. That’s an increase of 7.42% year over year.
San Diego and Orange County which are considered high-cost areas have higher max
loan limits. In San Diego County, the max loan limited increased from $701,500 to $753,250 for a single-family home. The Orange County max loan limit increased from $765,600 to $822,375 for a single-family home.
This is great news as you now stand a better chance of qualifying to finance more house with a conforming loan!
Here's how it breaks down for our Southern California regions:
RIVERSIDE COUNTY (National Conforming Loan Limits)
SAN DIEGO COUNTY (High Balance Conforming Loan Limits)
ORANGE AND LOS ANGELES COUNTIES (High Balance Conforming Loan Limits)
4 units $ 1,581,751
Contact one of our mortgage loan officers to date for details and get pre-approved to purchase with the new loan limits!