FHA 2021 Loan Limits Announced

The FHA loan is one of our most popular loan products with its low down payment requirement and the fact that it is easy credit qualifying. Despite the requirements being seemingly lenient, there are strict guidelines on the maximum amount of the loan. Today FHA announced an increase in their loan limits for 2021.

Given that the National Housing Act requires FHA to set single family forward loan limits at 115% of median home prices, this should not come as a surprise. Home values have continued to grow over the past year, thanks to limited inventory and low interest rates boosting FHA loan limits in 2021 to $356,362 in most areas of the US. This is an increase of nearly $25,000 over 2020’s loan limit of $331,760. These new loan limits will be effective for new loans starting on January 1, 2021.

If you would like to learn more about the FHA Loan or have questions about the loan limits in your area, please drop us a note in the chat below or reach out to a mortgage banker near you.