2021 Conforming Loan Limit California

The Federal Housing Finance Agency recently announced the new 2021 conforming loan limits for Fannie Mae and Freddie Mac. The new mortgage limit for a base 1 unit property is $548,250, with select high-cost locations even greater.  This is over a 7% increase from last year’s limit of $510,400 and marks the fifth year in a row of increases.

The conforming loan limits for Fannie and Freddie are determined by the Housing and Economic Recovery Act of 2008, which established the baseline loan limit at $417,000 and mandated that, after a period of price decreases, the set mortgage limit cannot rise again until property values return to pre-decline levels.

For high-cost areas, where 115% of the local median home value exceeds the baseline conventional loan limit, the maximum loan limit goes up to $822,375 for 1 unit properties. Many locations in California like San Francisco, San Diego, and Los Angeles fall into these designated  “high-cost” locations. Buyers can find the complete state list of 2021 conforming loan limits here.

Units                       Most States High Cost
1 $548,250 $822,375
2 $702,000 $1,053,000
3 $848,500 $1,272,750
4 $1,054,500 $1,581,750

Modern Lending is proud to offer conventional financing options up to 95% for qualified buyers. Please reach out to us 7 days a week to learn more about any of the programs offered.

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