The FHA’s “floor” and “ceiling” loan limits will increase to $356,362 and $822,3751, respectively, for a one-unit property.
The Federal Housing Administration (FHA) published Mortgagee Letter 2020-41, 2021 Nationwide Forward Mortgage Limits, which provides the maximum mortgage limits for FHA-insured Title II forward mortgages. These new loan limits are effective for case numbers assigned on or after January 1, 2021, through December 31, 2021. This year, the Federal Housing Finance Agency (FHFA) increased annual loan limits by 7.42 percent for Calendar Year (CY) 2021 based on changes to the national median home prices. Therefore, FHA’s “floor” and “ceiling” loan limits will increase from $331,760 and $765,600 in CY 2020, to $356,362 and $822,3751, respectively, for a one-unit property. The following table lists the CY 2021 FHA loan limit thresholds for low cost and high cost areas:
|
Property Size
|
Low Cost Area “Floor”
|
High Cost Area “Ceiling”
|
|
One-Unit
|
$356,362
|
$822,375
|
|
Two-Units
|
$456,275
|
$1,053,000
|
|
Three-Units
|
$551,500
|
$1,272,750
|
|
Four-Units
|
$685,400
|
$1,581,750
|
As in previous years, Alaska, Hawaii, Guam, and the U.S. Virgin Islands have a higher limit “ceiling” than the rest of the country. Mortgagees may view the list of areas at the “ceiling” and areas with limits between the “floor” and “ceiling” — along with lists that can be sorted by state, county or MSA or by calendar year — on the Maximum Mortgage Limits web page.
Source: FHA