Fannie Mae, Freddie Mac Conforming Loan Limits to Rise in 2021

Housing Finance

This post was updated on Dec. 3.

The Federal Housing Finance Agency (FHFA) today announced that the maximum baseline conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2021 will increase to $548,250 from $510,400.

The loan limit will rise 7.42% in 2021 because FHFA has determined that the average U.S. home value increased by that amount between the third quarters of 2019 and 2020. Higher loan limits will be in effect in higher-cost areas as well. The new ceiling loan limit in high-cost markets will be $822,375. The previous ceiling was $765,600. A list of the 2021 maximum conforming loan limits for all counties and county-equivalent areas in the country may be found here.

In its news release, FHFA said that “as a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2021 in all but 18 counties or county equivalents in the U.S.” In a related development, the Federal Housing Administration on Dec. 2 announced its new single-family loan limits for 2021. For additional information, contact Curtis Milton at 800-368-5242 x8597.

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