The Federal Housing Finance Agency came out with the new loan limits for conforming conventional loans for 2021. The last couple years the numbers seemed to have jumped a lot and 2021 isn’t any different!!
For most of the US, the maximum conforming loan limit is $548,250 for one unit. For two units, the max limit is $702,000. For three units, it’s $848,500 and four units are limited to $1,054,500.
In 2020, the one unit limit was $510,000. This means for those buying homes over $548,000, you can put 5% down! For someone that was looking at a home at $550,000, you can put $27,00 down compared to 2020 when you would have needed closer to 20% down. Interest rates are typically better for conforming loans also.
One of the biggest benefits is in underwriting. Jumbo underwriting is usually much tougher than conforming underwriting. So it may be a lot easier to get your loan approved now with the new limits!
With the current interest rates and now the improved conforming limits, it can be a great time to look at new homes!!
Leslie Vanderwerf, NMLS ID#335509, Cross Country Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
