The Federal Housing Administration (FHA) recently announced its 2021 loan limits. Due to a steady increase in median home prices across the country, the FHA increased annual loan limits by 7.42%. This will be shown in a floor increase from $331,760 to $356,362 for single-family home loans and a ceiling increase from $765,600 to $822,375.

The 2021 national low-cost area mortgage limit of $356,362 is set at 65% of the national conforming limit of $548,250, while the high-cost ceiling is set at 150% of the national conforming loan limit. This ceiling will see an increase from $765,600 to $822,375 for single-family home loans in 2021. Low-cost areas apply to regions where 115% of the median home price is less than $356,362. High-cost areas apply to regions where 115% of the median home prices are higher than the floor. In these areas, the loan limits will also equal 115% of the median home price ceiling of $822,375.

To see a table highlighting the 2021 FHA loan limits for low-cost and high-cost areas, refer to the table below:

In addition, the FHA also increased loan limits for the Home Equity Conversion Mortgage (HECM). This reverse mortgage program will see an increase from $765,600 to $822,375. Because the HECM program from the FHA does not regulate loan limits based on county or Metropolitan Statistical Area (MSA), this limit applies to all loan limits and does not change based on location.

To further explore the FHA loan limit by MSA or county, refer to the FHA loan limit website.

To read more about FHA loans on Atlanta Real Estate Forum, click here.