Posted To: MBS Commentary

If you'd like to read the official FHFA press release, here you go , but here's the skinny on the new conforming loan limit of $548,250 for 2021, up from $510,400 in 2020. Which loans does this apply to? Conventional, conforming loans (those sold to or securitized by Fannie Mae and Freddie Mac, which is a vast majority of the market), both refinances and purchases Does this apply to FHA/VA/USDA loans? Not immediately, and not equally. FHA will use the new number to announce its own loan limit increases in a week or two. When that happens, you can always use this page to determine your county's limit. VA is a bit different depending on how much entitlement you have ( read more on the VA site ). What's the benefit of having a conforming loan amount? Conforming loans have the lowest…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: Mortgage News Daily