Fannie Mae and Freddie Mac increase conforming loan limit to $548,250
Most areas: The Federal Housing Finance Agency announced on November 24, 2020, that the new baseline conforming loan limit for Fannie Mae and Freddie Mac mortgages in 2021 will be $548,250 for one-unit properties in most areas in the U.S. This is a 7.5% increase from 2020’s limit of $510,400 and marks the fifth consecutive year of increases from the FHFA.
High-cost areas: The new loan limits for one-unit properties in FHFA-designated high-cost areas will range from $548,251 to $822,375. The baseline loan limit for Alaska, Hawaii, Guam, and the U.S. Virgin Islands will be $822,375 for one-unit properties
These increases are significant for homebuyers and homeowners! These higher loan limits keep homebuyers in step with the rising housing market. With conforming loans, homebuyers can purchase homes with lower down payments and more competitive rates! Homeowners can access more equity in their home by allowing them to borrow up to the increased conforming loan limit.
Click here to see the Conforming Loan Limits 2021 Map.