Exciting news for home buyers and owners!

Each year, in order to accurately reflect conditions experienced by home loan borrowers today (mainly, rising home prices), multiple governmental agencies and government-sponsored enterprises ("GSE" 's) calculate loan limits, or "floors" and "ceilings", and adjust accordingly. This means borrowers face new limits for how much they can borrow, depending on program.

If you remember, late last year, loan limits for 2020 were announced, and they were increases from 2019. Now, the conforming, FHA, and HECM loan limits have been announced to increase for 2021 as well. While some numbers may vary county-to-county, the new numbers for 2021 are:

• a national conforming loan limit of $548,250 (this is true for Skagit, Whatcom, and Island counties; if you're in King, Snohomish, or Pierce, this number is $776,250)


• an FHA "floor" of $356,362 and a "ceiling" of $822,375 for single-family residences (for King, Snohomish, and Pierce these numbers are $741,750 and $949,600)


• a national HECM ("reverse mortgage") limit of $822,375

But, isn't a "limit" usually a bad thing? Not in this case!

Because home prices have continued to rise, borrowers (both for purchases and refinances) might face challenges when trying to obtain financing for a property previously thought of as "too expensive" for these limits, or have been stuck when a property was just over the "floor" (lowest possible amount that can be borrowed), and face additional hurdles, or a more complex loan process (for example, having to pursue a "jumbo loan") than they might have originally thought. It's a good thing these numbers have increased—it means, without even realizing it or having to do anything, you're going to be an even more empowered homeowner or buyer in just a few weeks than you are now!

There's a lot to these numbers, and what they mean. If you have any questions about how these changes impact you, or how you can take advantage of them, reach out today. We're here to help.