For instance, the maximum amount for a conforming single-family home loan in San Diego County is $753,250. A conforming loan is one that meets the standards of loan guidelines established by government-sponsored enterprises Freddie Mac and Fannie Mae. The conforming loan limits for those areas tend to be notably higher than the limits for the domestic U.S. because they are designated as high-cost areas. This marks the fifth year in a row that federal housing officials have raised the baseline, in order to keep up with rising home values. In 2020, the maximum conforming limit for a conventional loan for a single-family home is $510,400. The conforming loan limit is the dollar cap on the size of a mortgage Freddie Mac and Fannie Mae are willing to buy or guarantee. Every year, the Federal Housing Finance Agency (FHFA) sets a dollar amount as the upper limit for conforming loans. Current Limits for Conforming Loans. Here's what investors need to know, including 2020 limits. The Housing and Economic Recovery Act sets the maximum loan limit for such areas as a multiple of the area median home value. View limits for VA | FHA | conforming. When to Buy a Home Based on Mortgage Rates, Special Considerations for the Conforming Loan Limit, Office of Federal Housing Enterprise Oversight (OFHEO) Definition, Housing And Economic Recovery Act (HERA) Definition, FHFA Announces Maximum Conforming Loan Limits for 2021. In 2019, the maximum amount you could borrow to qualify for a conforming loan was $484,350. 2021 Conforming Loan Limit for Arizona's all the counties. But in high-cost areas, such as Washington D.C. and certain counties in California, the ceiling for conforming loans is higher: $765,000. comzeal images / Shutterstock. The 2021 conforming loan limit for Alameda County, California is $822,375 for a single-family home. Based on the change in average US home price, this yearly limit is the maximum amount that a homebuyer can borrow to buy a home with a conforming loan. The final loan amount is $550,000 — well within limits for the area. In 2020, the maximum conforming loan limit for one-unit properties in most of the U.S. is $510,400. In higher-cost areas, the limit is $822,375. Forbes adheres to strict editorial integrity standards. Loans above this limit are known as jumbo loans. Because the FHFA HPI jumped by 7.42% between the third quarters of 2019 and 2020, the baseline maximum conforming loan limits also increased by that percentage. Current Conforming Loan Limits. The conforming loan limit in 2020 for single-family dwellings is $510,400. So let’s take a moment to summarize some of the key points. Natalie Campisi is a Los Angeles-based reporter who covers mortgages and housing news for Forbes Advisor. Where Is My Stimulus Check? When Will I Get It? The conforming loan limit is the dollar cap on the size of a mortgage that the Federal National Mortgage Association (colloquially known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (aka Freddie Mac) will purchase or guarantee. 1 Unit – $548,250; 2 Unit – $702,000; 3 Unit – $848,500 Lenders use a process known as underwriting to determine the risk of issuing you a mortgage. Southern California, South Florida, and the greater New York metropolitan area are three examples of regions in the contiguous part of the country that satisfy the requirements for higher maximum conforming loan limits. Investopedia requires writers to use primary sources to support their work. It’s $822,375 for Alaska and Hawaii. Additionally, borrower eligibility differs from lender to lender for these large mortgages. The higher figure also serves as the upper loan limit in high-cost counties. 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