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