The conforming loan limit is the maximum amount that the Federal Housing Finance Agency (FHFA) will fund for buyers to purchase a home. This limit applies to Fannie Mae and Freddie Mac loans. To participate in these mortgage programs, buyers must meet a specific set of qualifications. If you need guidance to secure a residential loan in Pennsylvania, MortgageDepot’s team of experts will help you navigate conforming loan limits and locate the most appropriate loan program for your needs.
FHFA’s New Conforming Loan Limits
The FHFA recently announced that the conforming loan limit for 2021 has increased from $510,400 to over $548,250. This is the latest in a series of conforming loan limit increases that began in 2016.
Here is a summary of conforming loan limit increases that have ultimately led to a 31.5% increase over the past five years:
- 2016: $417,000
- 2017: $424,100 (a 1.7% increase from the previous year)
- 2018: $453,100 (a 6.8% increase from the previous year)
- 2019: $484,350 (a 6.9% increase from the previous year)
- 2020: $510,400 (a 5.4% increase from the previous year)
- 2021: $548,250 (a 7.4% increase from the previous year)
These conforming loan limit increases do not apply to properties located in Alaska, Hawaii, Guam and the U.S. Virgin Islands. They are considered high-cost areas and their conforming loan limit calculation is 150% of the conforming loan limit throughout the rest of the United States. This brings the conforming loan limit in these high-cost areas to $822,375 in 2021.
Conforming Loan Limits in Pennsylvania
Throughout Pennsylvania, the current conforming loan limit is $548,250 in all counties except for Pike County. Pike County is considered a high-cost area with a conforming loan limit of $822,375. If you are exploring Fannie Mae or Freddie Mac mortgage options in Pennsylvania, you’ll likely see these figures.
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