FHA Loan Limits Have Increased for 2021!


If you’re closing on a new home on or after January 1, 2021, you’ll likely have more flexibility with your Federal Housing Administration (FHA) loan! The FHA has announced new loan limits for 2021 in response to the dramatic increase in home prices across the country.


Why Did Loan Limits Increase?


Housing prices are on the rise, and the National Housing Act requires the FHA to maintain loan limits at 115% of median home prices (calculated using Metropolitan Statistical Area [MSA] and county information).

New Loan Limits?


Floor limits for one-unit properties have increased across most of America, from $331,760 in 2020 to $356,362 in 2021, which is 65% of the national conforming loan limit of $548,250. In high-cost areas, ceiling loan limits have risen by nearly $57,000, from $765,600 to $822,375, which is 150% of the national conforming loan limit.



2021 FHA Loan Limits


Old Baseline Limit

$331,760


New Baseline Limit

$356,362


Old Ceiling Limit

$765,600

New Ceiling Limit

$822,375


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