New FHA Limits In 2021

December 8, 2020
Author: New England Home Mortgage

This could make a big difference for you and we don't want you to miss it!

The Federal Housing Agency (FHA) has just increased the amount of money that can be borrowed through its mortgage programs by nearly $25k in most areas. In high cost locations, the increase is even greater. New limits will take effect in 2021.

The increases will allow more borrowers to take advantage of FHA’s benefits:

  • Low down payment options
  • Lower total cash-to-close requirements with gift or seller contributions
  • More lenient and streamlined refinancing
  • Ability to combine purchase and rehab financing
  • In some high-cost areas, higher loan limits than conventional mortgages

Here are the specifics:

  • In most areas, the FHA loan limit will be $356,362, a 7.4% increase over 2020’s limit of $331,760.
  • In high cost areas, the limit moves to $822,375, a 7.4% increase over 2020’s $765,600.
  • In some lower-cost areas or those with higher costs of construction, limits will vary.

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.

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