2021 loan limits announced

Each year the Federal Housing Finance Agency (FHFA) reviews home appreciation and makes adjustments to the maximum conventional loan limits. With our booming housing market the FHFA was able to increase the new conforming loan limits substantially for 2021.

Conventional loans are home loans sold to Fannie Mae and Freddie Mac. Nearly all banks and lenders follow these guidelines when lending on residential property so the loans are salable on the secondary market.

For 2021, the new loan limit for conforming loans will be $548,250. This is an increase from $510,400 from 2020 which allows homebuyers to increase their purchasing power. 

Loan Limits by Property Type

  • 2021 One-Unit Loan Limit: $548,250
  • 2021 Two-Unit Loan Limit: $702,000
  • 2021 Three-Unit Loan Limit: $848,500
  • 2021 Four-Unit Loan Limit: $1,054,500

Conventional Loan Limit Calculation

Fannie Mae Lender Letter (LL-2020-14) https://singlefamily.fanniemae.com/media/24391/display

The new Conventional Loan Limit of $548,250 is the baseline limit for one-unit properties in United States. There are certain areas in the country that are considered to be high cost, such as Alaska and areas of California.

In order for these areas to be deemed as high cost, 115% of the local median home value must exceed the baseline loan limit for that county. The high cost loan limited in these areas will increase by 150% of the baseline.

This makes the maximum loan limit for these areas $822,375. A map of the U.S. counties and their maximum loan limits using the loan limit map. There are no counties in Michigan that are considered to be a high cost area.

Are there loans options for over the Conventional Loan Limit?

With property values increasing, having options for larger loans may be necessary for some buyers. If the loan amount exceeds the conforming loan limit of $548,250, the mortgage is called a jumbo loan.

Jumbo mortgages are non-conforming loans that have guidelines and rates set by individual investors and banks. As a Mortgage Broker, Riverbank Finance is able to offer a wide variety of Jumbo loan options with low rates and low down payments.

Michigan Loan Limits by County

County NameStateOne-Unit
Limit
Two-Unit
Limit
Three-Unit
Limit
Four-Unit
Limit
AlconaMI$548,250$702,000$848,500$1,054,500
AlgerMI$548,250$702,000$848,500$1,054,500
AlleganMI$548,250$702,000$848,500$1,054,500
AlpenaMI$548,250$702,000$848,500$1,054,500
AntrimMI$548,250$702,000$848,500$1,054,500
ArenacMI$548,250$702,000$848,500$1,054,500
BaragaMI$548,250$702,000$848,500$1,054,500
BarryMI$548,250$702,000$848,500$1,054,500
BayMI$548,250$702,000$848,500$1,054,500
BenzieMI$548,250$702,000$848,500$1,054,500
BerrienMI$548,250$702,000$848,500$1,054,500
BranchMI$548,250$702,000$848,500$1,054,500
CalhounMI$548,250$702,000$848,500$1,054,500
CassMI$548,250$702,000$848,500$1,054,500
CharlevoixMI$548,250$702,000$848,500$1,054,500
CheboyganMI$548,250$702,000$848,500$1,054,500
ChippewaMI$548,250$702,000$848,500$1,054,500
ClareMI$548,250$702,000$848,500$1,054,500
ClintonMI$548,250$702,000$848,500$1,054,500
CrawfordMI$548,250$702,000$848,500$1,054,500
DeltaMI$548,250$702,000$848,500$1,054,500
DickinsonMI$548,250$702,000$848,500$1,054,500
EatonMI$548,250$702,000$848,500$1,054,500
EmmetMI$548,250$702,000$848,500$1,054,500
GeneseeMI$548,250$702,000$848,500$1,054,500
GladwinMI$548,250$702,000$848,500$1,054,500
GogebicMI$548,250$702,000$848,500$1,054,500
Grand TraverseMI$548,250$702,000$848,500$1,054,500
GratiotMI$548,250$702,000$848,500$1,054,500
HillsdaleMI$548,250$702,000$848,500$1,054,500
HoughtonMI$548,250$702,000$848,500$1,054,500
HuronMI$548,250$702,000$848,500$1,054,500
InghamMI$548,250$702,000$848,500$1,054,500
IoniaMI$548,250$702,000$848,500$1,054,500
IoscoMI$548,250$702,000$848,500$1,054,500
IronMI$548,250$702,000$848,500$1,054,500
IsabellaMI$548,250$702,000$848,500$1,054,500
JacksonMI$548,250$702,000$848,500$1,054,500
KalamazooMI$548,250$702,000$848,500$1,054,500
KalkaskaMI$548,250$702,000$848,500$1,054,500
KentMI$548,250$702,000$848,500$1,054,500
KeweenawMI$548,250$702,000$848,500$1,054,500
LakeMI$548,250$702,000$848,500$1,054,500
LapeerMI$548,250$702,000$848,500$1,054,500
LeelanauMI$548,250$702,000$848,500$1,054,500
LenaweeMI$548,250$702,000$848,500$1,054,500
LivingstonMI$548,250$702,000$848,500$1,054,500
LuceMI$548,250$702,000$848,500$1,054,500
MackinacMI$548,250$702,000$848,500$1,054,500
MacombMI$548,250$702,000$848,500$1,054,500
ManisteeMI$548,250$702,000$848,500$1,054,500
MarquetteMI$548,250$702,000$848,500$1,054,500
MasonMI$548,250$702,000$848,500$1,054,500
MecostaMI$548,250$702,000$848,500$1,054,500
MenomineeMI$548,250$702,000$848,500$1,054,500
MidlandMI$548,250$702,000$848,500$1,054,500
MissaukeeMI$548,250$702,000$848,500$1,054,500
MonroeMI$548,250$702,000$848,500$1,054,500
MontcalmMI$548,250$702,000$848,500$1,054,500
MontmorencyMI$548,250$702,000$848,500$1,054,500
MuskegonMI$548,250$702,000$848,500$1,054,500
NewaygoMI$548,250$702,000$848,500$1,054,500
OaklandMI$548,250$702,000$848,500$1,054,500
OceanaMI$548,250$702,000$848,500$1,054,500
OgemawMI$548,250$702,000$848,500$1,054,500
OntonagonMI$548,250$702,000$848,500$1,054,500
OsceolaMI$548,250$702,000$848,500$1,054,500
OscodaMI$548,250$702,000$848,500$1,054,500
OtsegoMI$548,250$702,000$848,500$1,054,500
OttawaMI$548,250$702,000$848,500$1,054,500
Presque IsleMI$548,250$702,000$848,500$1,054,500
RoscommonMI$548,250$702,000$848,500$1,054,500
SaginawMI$548,250$702,000$848,500$1,054,500
Saint ClairMI$548,250$702,000$848,500$1,054,500
Saint JosephMI$548,250$702,000$848,500$1,054,500
SanilacMI$548,250$702,000$848,500$1,054,500
SchoolcraftMI$548,250$702,000$848,500$1,054,500
ShiawasseeMI$548,250$702,000$848,500$1,054,500
TuscolaMI$548,250$702,000$848,500$1,054,500
Van BurenMI$548,250$702,000$848,500$1,054,500
WashtenawMI$548,250$702,000$848,500$1,054,500
WayneMI$548,250$702,000$848,500$1,054,500
WexfordMI$548,250$702,000$848,500$1,054,500

Apply for a Conventional Home Loan

Over 80% of all mortgages are conventional loans. Conventional loans offer some of the lower mortgage rates and payments available for buying a home or refinancing. To apply for a Conventional Home Loan call Riverbank Finance today at 1-800-555-2098.

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