The Federal Housing Finance Agency (FHFA) announced new maximum conforming loan limits for home mortgages to be acquired by Fannie Mae in 2021. In Central and Western New York:
- The maximum conforming FHFA loan limit for one-unit properties will be $548,250, an increase from $510,400 in 2020.
- Multi-family property conforming limits increased as follows: Two-family properties are up to $702,000, three-unit homes up to $848,500 and the new limit for four-unit properties is $1,054,500.
The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect changes in the average U.S. home price. The percentage increase in the maximum conforming loan limit follows the Housing Price Index for the prior four quarters.
“The annual FHFA adjustment is important for homebuyers, providing better financing options for loans that would traditionally have fallen into the ‘jumbo’ category,” said GRB’s SVP, Residential Mortgage Manager Mike Pulver. “In a real estate market that is as competitive as Rochester, the increase in the loan limits will be crucial in helping potential buyers keep pace with the increase in home values.”
For new loan applications or applications already in process, the loan amounts will be subject to 2020 limits as long as the loan closes by Dec. 31. Loans closing on Jan. 1 or after will fall under the 2021 limits.
Contact GRB’s Mortgage Team with any questions.