BlogIndustry News January 08 2021

FHA Loan Limits for 2021

Understanding this year’s big changes in mortgage loan limits

For first-time buyers, the limit on what they can borrow impacts their ability to buy a home. And changing housing prices can affect the amount of money lenders can give you.

How? By affecting the yearly Federal Housing Administration Loan Limits.

What is the FHA Loan Limit?

The Federal Housing Administration (FHA) was created to support low- to moderate-income homebuyers. The FHA sets loan limits each year for buyers utilizing FHA loans (any loan from a bank or mortgage company that is insured or backed by the FHA). Those limits are based on the average home price for the area in which you are buying a home. The more expensive the average home, the higher the loan limit. The limit is calculated at 115% of the area’s median home price, or 150% in high-cost areas.

Each year, the FHA adjusts the loan limits based on the most current sales data available. The loan limits fluctuate with the industry, rising and decreasing with home prices. This is to ensure that buyers in high-cost areas have a fair chance at securing a loan that can help them get into an expensive market.

What are the FHA Loan Limits for 2021?

In the 65 high-cost U.S. counties where the median home price far exceeds the FHA’s loan limit floor, the FHA is increasing its 2021 loan limit to $822,375, a near $57,000 increase over 2020’s total of $765,600.

You can search for the loan limits for your area here, with the U.S. Department of Housing and Urban Development.

Why are FHA Loan Limits Up This Year?

In 2020, we saw a massive increase in home prices with huge year-over-year gains. Consistently low, record-setting interest rates have pushed the boom, with “easy money” for buyers creating a mad dash to purchase homes, leaving a lack of inventory around the country and driving prices up.

Because of the large increase in housing prices, the maximum loan limits will also increase in 3,108 U.S. counties. There will be no decreases in loan limits, which indicates that nationwide home sales and prices are strong.

Alaska, Hawaii, and Guam have higher loan limits due to their high cost of construction.

The new loan limits will be effective for any loans assigned on or after January 1, 2021. At Lennar Mortgage we work with each buyer individually to find loans that are a perfect fit. To find out how much home you can afford, connect with one of our brokers at lennarmortgage.com.

November 10 2021

Pet-Friendly Remodeling Ideas

Here are a few ideas for making some pet-friendly changes to our homes to make them more fun, friendly and comfortable...

Read More

November 03 2021

Fall Garden Cleanup Checklist

Find out which chores to skip, which are must-dos, and how to keep your garden looking beautiful in the fall.

Read More

October 27 2021

Should You Buy a Home with Cash?

Paying upfront instead of obtaining financing is often seen as a way of getting a leg up on other potential buyers. But is it...

Read More

October 19 2021

5 Ways to Make Your Offer Stand Out in a Tight Housing Market

With huge buyer demand and a shrinking inventory, this market means you'll need to be strategic, creative, and prepared in...

Read More

October 12 2021

Should I Buy a Home with an HOA?

In the excitement of buying a new home, it can be easy to overlook the presence of a Homeowners' Association, or HOA. But an...

Read More

October 04 2021

14 Brilliant Ideas for Decorating Your Porch This Fall

Simple and inexpensive solutions for a cozy, colorful porch that says "welcome."

Read More

September 23 2021

7 Surprising Things First-Time Homebuyers Should Never Do, According to Loan Officers

Loan Officers Rachel Alcaraz and Haley Aivazian share their must-follow tips for first-time homebuyers.

Read More

September 08 2021

Expand Your Living Space with the Ultimate Patio

With some creativity, DIY spirit, and a bit of a budget, you can transform your patio into a space not only that you love, but...

Read More

September 02 2021

Mistakes Sellers Make When Showing Their Home

Here are some do's and don'ts to help show your home in the most appealing light.

Read More

12345Last

Search Results for query

November 10 2021

Pet-Friendly Remodeling Ideas

Here are a few ideas for making some pet-friendly changes to our homes to make them more fun, friendly and comfortable for our furry friends.

Read More

November 03 2021

Fall Garden Cleanup Checklist

Find out which chores to skip, which are must-dos, and how to keep your garden looking beautiful in the fall.

Read More

October 27 2021

Should You Buy a Home with Cash?

Paying upfront instead of obtaining financing is often seen as a way of getting a leg up on other potential buyers. But is it always the best idea? And why is it so common

Read More

October 19 2021

5 Ways to Make Your Offer Stand Out in a Tight Housing Market

With huge buyer demand and a shrinking inventory, this market means you'll need to be strategic, creative, and prepared in order to buy your dream house.

Read More

October 12 2021

Should I Buy a Home with an HOA?

In the excitement of buying a new home, it can be easy to overlook the presence of a Homeowners' Association, or HOA. But an HOA can have a lot of influence over your purchase choice, including your monthly payment, the money you need to set aside for...

Read More

October 04 2021

14 Brilliant Ideas for Decorating Your Porch This Fall

Simple and inexpensive solutions for a cozy, colorful porch that says "welcome."

Read More

September 23 2021

7 Surprising Things First-Time Homebuyers Should Never Do, According to Loan Officers

Loan Officers Rachel Alcaraz and Haley Aivazian share their must-follow tips for first-time homebuyers.

Read More

September 08 2021

Expand Your Living Space with the Ultimate Patio

With some creativity, DIY spirit, and a bit of a budget, you can transform your patio into a space not only that you love, but that creates value.

Read More

September 02 2021

Mistakes Sellers Make When Showing Their Home

Here are some do's and don'ts to help show your home in the most appealing light.

Read More

12345Last

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?