For 2021, the FHFA (Federal Housing Finance Administration) set the baseline conforming loan limit for 1 unit properties at $548,250 for Conventional financing (Fannie Mae & Freddie Mac) and up to $822,375 on high cost counties California.
What is a Conforming loan? A conforming home loan must meet, or “conform” to certain criteria or guidelines set forth by Government Sponsored Entities (GSE’s) Freddie Mac and Fannie Mae. The loan amount is just one of those criteria needed to be classified as a ‘conforming’ loan.
What is a High Balance or ‘high-cost’ county loan limit? Loan limits are derived by median home prices in a particular county and have a ceiling of 150% of the baseline mortgage limit. Loan amounts between $548,250 and $822,375 are referred to agency ‘High Balance’ or ‘Super Conforming’ loans because they exceed the baseline limit.
2021 FHA County Loan Limits in California
HUD/FHA determines their 2021 maximum county mortgage limit differently than FHFA. The FHA (Federal Housing Administration) is required to set a single family floor and ceiling loan limit range, which is based on 80% to 150% of the median home prices.
The FHA’s current floor is $356,362 and the ceiling is $822,375.
FHA Jumbo loan limit – California FHA loan amounts in high-cost counties between $548,250 and $822,375 are referred to FHA jumbo loans or FHA high balance loans.
2021 VA County Loan Limits in California
Good news….VA loans in California no longer have a county loan limit for 2021! In VA Circular 26-19-30, the VA announced that President Trump signed the Blue Water Navy Vietnam Veterans Act that removes all county loan limits for Veterans
Loan limits listed below are for 1 unit properties. Loan limits for 2-4 units are higher. Contact me for details on qualifying and loan limits for 2-4 unit property.
|COUNTY||2021 FHA LOAN LIMIT||2021 CONVENTIONAL LOAN LIMIT|
|San Luis Obispo||701,500||701,500|