New Conventional Loan Limit
The Federal Housing Finance Agency recently announced there will be a new increase to the conforming loan limit for all Fannie Mae and Freddie Mac mortgages for 2021. Loan limits have been consistently increasing each year for the past five years and help the housing market to keep up with economic and inflationary measures.
Due to an increase of approx. 7.42% in home values between 2019 and 2020, the nationwide conforming loan limit will increase from $510,400 to $548,250 for 2021. A big advantage of this increase is that conventional loans offer better interest rates and easier lending guidelines.
New High Balance Loan Limits
In high-cost areas, such as the state of California, we will see a new maximum loan limit for one-unit properties increase to $822,375. While this is the maximum loan limit, it will vary from county to county. For example, the new conforming loan limit for San Diego County will be $753,250.
This is a signal that the housing market will continue to remain strong as increased loan limits make mortgage lending for borrowers in higher-cost areas more accessible.
If you have any questions please contact Bluefire Mortgage Group and our Mortgage Loan Originators would be happy to explain these new guidelines and how you can benefit from this on your next refinance or purchase mortgage loan. We are accepting and closing loan applications based on these new loan guidelines effective immediately.