Fannie and Freddie’s Compliant Loan Limits Rise to $ 822,375 in DC Area
For higher-cost areas, including the district and surrounding counties, the FHFA-compliant loan limit will be $ 822,375 next year, up from $ 765,600 this year.
the Federal Housing Finance Agency has set compliant loan limits for mortgages that can be purchased by Fannie Mae and Freddie Mac for 2021, and the limits have been increased for the fifth year in a row.
The compliant loan limit for single unit properties in 2021 will be $ 548,250, an increase from $ 510,400 in 2020.
For higher-cost areas, including the district and surrounding counties, the limit will be $ 822,375 next year, up from $ 765,600 this year.
The FHFA sets compliant loan limits based on national increases in house prices, which increased 7.42% between the third quarters of 2019 and 2020. The increase in loan limits corresponds to the increase in prices housing.
High cost areas are those in which 115% of the median value of the local home exceeds the loan limit in line with the baseline. The compliance limit for high cost zones is capped at a maximum of 150% of the benchmark loan limit.
The compliant maximum loan limits don’t apply to all counties or county equivalents across the country, but the FHFA says it will apply to all but 18 counties in 2021.
The conforming loan limit of $ 822,375 in the Washington area applies to all counties and county equivalents in Northern Virginia and suburban Maryland.
Here is a map showing counties nationwide by Loan limits compliant with 2021 of the FHFA:
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