Published on January 07, 2021
Conforming Loan Limits Rise 7.4% for 2021
Written by The Servion Group
The Federal Housing Finance Agency has announced an increase in conforming loan limits for loans to be acquired by Fannie Mae and Freddie Mac.
In most areas of the country, the 2021 maximum conforming loan limit is $548,250.
This is a 7.4 percent increase from 2020’s limit of $510,400. This also marks five straight years of increases by FHFA.
In designated high-cost areas, where 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum limit will rise to $822,375, or 150 percent of $548,250.
Find conforming loan limits in your area
To find the conforming loan limit for any county in the U.S., use FHFA's interactive map.
Why the increase?
Under the Housing and Economic Recovery Act of 2008, the FHFA is tasked with keeping the conforming loan limit in line with home values. FHFA data showed that home prices increased an average of 7.4 percent between the third quarters of 2019 and 2020. Therefore, the agency raised the conforming loan limit by the same percentage.
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