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Loan Limits Increase Nearly 7.5 Percent

Posted To: MND NewsWire

The Federal Housing Finance Agency (FHFA) has released the new conforming loan limits which will be in place next year for mortgages acquired by the GSEs Fannie Mae and Freddie Mac. In most of the U.S., the 2021 maximum conforming loan limit (CLL) for one-unit properties will be $548,250 , an increase from $510,400 in 2020. The Housing and Economic Recovery Act (HERA) requires that the baseline CLL be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price as reported by FHFA’s House Price Index (HPI). According to the seasonally adjusted, expanded data HPI published last week, house prices increased 7.42 percent, on average, between the third quarters of 2019 and 2020. Therefore, the baseline maximum CLL will increase by the same percentage. The…(read more)

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