The Federal Housing Administration (FHA) has announced its loan limits for 2021. The nationwide rise in median home prices indicates most buyers across the country will see increases, the National Association of Home Builders reports.
The Federal Housing Finance Agency increased annual loan limits by 7.42% in 2021 based on changes to the national median home prices.
Therefore, the FHA floor will increase from $331,760 to $356,362 for single-family home loans. The FHA national low-cost area mortgage limit of $356,362 is set at 65% of the national conforming limit of $548,250. The base limit applies to areas where 115% of the area median home price is less than $356,362.