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Conforming Loan Limits Are Set to Increase in 2021!

Good news! Conforming loan limits are going up in 2021. Why is this good news?

  • You'll have a better chance of qualifying for a property inspection waiver—no appraisal before close.

  • Less documentation—Freddie Mac loan products may require one year of tax returns instead of two

Here are current limits in Monterey County:

1 unit - $672,750

2 units - $861,250

3 units - $1,041,050

4 units - $1,293,750

Starting in January, 2021, the baseline for single-unit home mortgages acquired by Fannie Mae and Freddie Mac will jump from $510,400 to $548,250 in most of the continental US.

Baseline for Fannie & Freddie Mac

1 unit - $548,250

2 units - $702,000

3 units - $848,500

4 units - $1,054,500

Average homes prices have been consistently rising so adjustments must be made each year to accommodate rising prices. Limits vary by County but Monterey is considered to be a high cost area so the baseline will adjust accordingly. 2021 High Area baseline will be $822,375

Source: Guaranteed Rate Affinity, 11/24/2020


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