2021 Conforming Loan Limits

December 1, 2020
Author: New England Home Mortgage

There could be savings on the table for you and we don't want you to miss it!

The Federal Housing Finance Agency (FHFA) has just increased the amount of money that can be borrowed through a standard home loan to almost $550K. In some areas, the limit is even higher. New limits will take effect in 2021.

This is great news for buyers and owners alike.

  • Buyers may be able to borrow more money through a conventional, typically lower-rate loan.
  • Owners may be able to refinance their "jumbo" loan to a lower rate conforming loan and possibly drop mortgage insurance, too.
  • Combining (or avoiding) smaller 1st and 2nd mortgages may now be an option.
  • The increase reaffirms the health of the housing market and your decision to invest in a home.

    Here are the specifics about the change:
  • The standard loan limit, also known as the conforming loan limit, rose by 7.42% to a maximum of $548,250 in most areas.
  • The percentage increase is equal to the national appreciation average over the last year.
  • This is the 5th year in a row that the FHFA has raised the limit, after a decade of no increases. The limit has risen more than $130K over five years.

Curious about limits in your county or other areas? Follow the link below to check. We'll update it as limits change, so bookmark it for future reference if you'd like.

If you have questions about what this change could mean for you, please reach out at 860.426.2447. And if you have friends who may benefit from the news, please pass it along. We would be honored to help them too.

Click HERE to check limits in your county or other areas.

(860) 736-2747
37 W. Center Street, Suite 208, Factory Square, Southington, CT. 06489